Should I get a credit union loan?
Answer:
I like these easy answers.
Yes, do it. Credit Unions are easier to get loans from, and their interest is usually a little lower then banks.
But take this warning with you. Over the past several years, lots of people have been suckered into getting consolidation loans, home equity loans, or refinancing homes in order to pay off credit card debts. Then those people turn right around and charge up the now-empty cards all over again. They are now in twice the debt, with no hope of getting out. The end up filing bankruptcy.
Last year many thousands of people did just that.
If you plan to go this route, you MUST control your credit spending. Don't close your credit accounts, but rip up the cards so you can't use them for a while. Call and get the credit limits lowered to around $500, and don't let them jack them up again (they will, trust me).
This is exactly what has happened to many of the people I am trying to help out. Credit card companies make it so easy for you to get credit these days.
if you can't handle paying them all separately you should get a debt consolidation loan at a credit union. It's way easier than trying to keep up with the different bills.
if you make less than $30k a year, getting a personal loan for around $9000 is probably going to pay the same rate as a credit card, which averages around 9-11%. If your credit cards are higher rates, then try to consolidate, but good luck. Best bet is to see if you qualify for a 0% credit card (I'm still getting those offers), and transfer all of the balances to that, then pay as much as you can into that, or pay the minimum and put the extra into a high yield savings (like ING or HSBC online accts) and make money off of that extra, and then pay one huge lump sum once the initial 0% wears off (usually a year). Good luck!
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