another debt consolidation instance with a small variation - The Finance Forums: Financial planning, debt help, loans, mortgages, retirement and 401k, investment, and general finance discussion forums

Eetwidomayloh · #1 (**permalink**) 03-27-2008, 12:44 AM

Hello all,

it seems the question has been aswered here befor but I am still going to pose the same questions:

Looking for an answer or two before I send out some checks.

I have the opportunity to consolidate my outstanding debt. I am looking at combining a total of 13k from three various sources. Here is the break down of each source and a general status of them

1. $4624.93 10.490% interest personal loan, this was to buy a vehicle that is a gas saver.
2. $5294.04 5.75% Interest, Truck note, this is my original vehicle, it’s about 2 years ahead of schedule in payments.
3. $3333.75 0% Interest for the next 7 months. Personal debt consolidation from before.

Total: $13252.72

I was offered a chance to consolidate all this on to a single bill for 4.99% interest only one credit card. There will be 3% charge to move the debts to one location on all three. This comes to a total of $397.58 bring the grand total to $13650.30 at 4.99% for the life of the loan. I cannot add the $3333.75 at a later time it must be included in the offer so potentially I lose out on the interest free for the 3 grand.

My questions are these:

1. Does this seem like a good idea to do?
2. Is losing the interest free option on the $3333.75 for the next 7 months worth the consolidation?
3. It will max out the loan that I am going to take so it potentially could affect my credit rating in the short term. I will gain the title to my truck and have everything centrally located as one bill where I will only be using 11% of my total credit but will be maxing out that credit card to about 95% for a few months until the total debt comes down. Is it still worth it?

Thank you for the time and answers,

Wayne.

kaaitar · #2 (**permalink**) 03-27-2008, 03:15 PM

what does the 0% loan jump up to after the 7 months is over?

how much of the 10% auto loan could you pay off between now and the end of the 7 months?

Eetwidomayloh · #3 (**permalink**) 03-27-2008, 04:50 PM

Quote:

Originally Posted by kaaitar

what does the 0% loan jump up to after the 7 months is over?

how much of the 10% auto loan could you pay off between now and the end of the 7 months?

the 0% jumps to 13% and the loan if I shoot minimums to the rest I could have 3500 paid off.

kaaitar · #4 (**permalink**) 03-29-2008, 03:00 PM

if it's possible i'd wait a few months and then take this new offer.
if that isn't an option then i'd go ahead and take it.