
Originally Posted by
Yekhefah
As y'all know, I don't always make enough to live on. Over the past five years, I've run up about eight grand in credit debt (including some healthcare expenses). The interest rates on these cards are oppressive, which I don't understand because I have terrific credit (about 760 last time I checked). So all I'm paying on these cards is interest, and the debt stays where it is, which is causing me a lot of heartache and depression.
I also have a personal loan which I used for my car. I bought the car new when I was married, but my ex-husband wanted to buy a house a year or two ago, so I got a personal loan to pay off the original auto loan and get his name off that debt. I still owe $4000 of the original $7500 loan (which had 10% interest).
I can't help but notice that the principle on the personal loan is dropping a lot more quickly than the balance on the cards. I've tried to apply for better cards to transfer the balance over and cancel the oppressive ones, but they won't give me the card because my debt-to-income ratio is too high. So would my bank give me another personal loan to pay off the cards? I'd rather take the $8000 and condense it into one loan with a 10% interest rate than keep treading water with these cards. But I don't want to take the hit on my credit if I apply for a loan and they deny it.
I guess my question is, will they deny me because of my DTI ratio? Or will they accept an explanation that I'm using the loan to knock out the cards? I'll be cancelling them as soon as I pay them off, so I'm definitely not going to be running up any further debt!
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