I've been following this thread for a while and learning and trying to figure things out, so sorry I haven't introduced myself before.
I feel like we are in a boat I'm trying to get back on an even keel. The last few years have been rough with little income and lots of various things (home repairs, helping sick family members, etc).
As of last Sept, dh has a full time job after years of self employment, and I want to start getting a grip on our finances.
Here's my current semi-urgent question:
Should I take out a loan from our credit union to pay off our credit cards?
We have :
CC#1 6,000 at 18.9% (Ugh!)
CC#2 3,000 at 24.9% (Wah!)
So is it a crazy idea to take out a personal loan from the credit union, which would be 5 years at a set 12.9% interest rate? Also getting us away from the credit cards, which we would then cut up. Our income is now greater than our expenses, which wasn't the case last year, and we can get away from the credit cards completely. Also we can start building up the savings account - but not if we keep throwing money at the credit cards because we hate that big balance being there.
Any thoughts? Is this a good thing or dumb somehow to just transfer the debt over. I like the idea of a set monthly payment right to the credit union.