Should I take a 1% higher interest rate on a personal loan so that I can have a lower monthly paymen

Last year I consolidated $7,000.00 in credit card debt under a fixed 14.99%. Now I have been offered a $20,000 loan at a fixed 15.99%. I plan to take $12,000 of that to pay the rest of my credit card debt which is currently a variable 21%. But I%26#039;m tempted to roll all of my debt into one monthly payment even if it means paying 1% higher on the $7,000. My current monthly payment on the $7,000 is 197.00 per month, on the $12,000.00 it is $350.00. The new offer is for $485.00 per month for 60 months on the $20,000, already saving me almost $70.00 per month in payments. I could take that $70.00-$100 extra and add it to the payments of $485.00 per month. I%26#039;m having trouble with the thought of paying a higher interest rate, even if it%26#039;s only 1%, but it would make life much easier if I had one loan at one institution. Also, I might be able to pay it off faster this way. I talked to the institution offering the 15.99%, they won%26#039;t renegotiate the 1%. They said take it or leave it. Thanks--Vee

Should I take a 1% higher interest rate on a personal loan so that I can have a lower monthly payment?

Consolidating it would be a good idea, BUT beware that the FIRST TIME you are late with a payment, your rate will change to the default rate which is normally 24% or higher - some go as high as 30%!! Set up automatic payments on the account to be sure the payment is made on time every month. DON%26#039;T OPEN ANYMORE CREDIT CARD ACCOUNTS and keep just ONE card - the one with the lowest rate - available for emergencies only - don%26#039;t carry it around with you. Tell yourself that if you can%26#039;t afford to pay cash for the item, you don%26#039;t need it and can%26#039;t afford it - period.

Should I take a 1% higher interest rate on a personal loan so that I can have a lower monthly payment?

Only if the extra money you are going to put to the loan goes to the principal. Which means you%26#039;ll owe less on the actual loan.

Personally though, it sounds like you are going down a LONG and VERY SLIPPERY road. If you do decide to pay the rest of your credit card debt off with the 12k you get back, I would suggest cancelling all your credit cards but one for emergency use only.

Not to be judgemental at all, but it sounds like your credit card spending is a bit over the top and unless you FORCE yourself to get rid of them, you%26#039;ll have the consolidation loan AND new credit card debt to pay off.

Good luck.

Should I take a 1% higher interest rate on a personal loan so that I can have a lower monthly payment?

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