Amberly B.
Good morning Savers!
I am desperate to get my credit card debt paid down. I WAS going to apply for a new 0% interest card with a long period (18 months) next month, however, one of my accounts was closed for non-use (draw back of paying things off and then not using the dang card for 6 months I guess? I didn't ask for it) dropping my available credit by 9K and raising my % used back over 30% (to 33). Literally the week I paid off a balance on another card. This somewhat messes with my plans, as, of course, I now look like a higher risk customer. I still have good a good credit score (around 740), but I'm trying to decide if I stick with my original plan (move one balance at a time and pay it down while on 0%) vs getting a personal loan vs. taking a retirement loan. My profile has actually done really well this year and I'm at 2x my annual salary in the account currently, and I'm only 41 years old, so no need for the funds in the next 5 years. Interest goes back to me (estimated at 9-11%) vs a private loan which the interest goes to a creditor (estimated at 12-16% interest) vs. a 0% interest card (where no one gets interest–BUT any amount not able to be transferred DOES accrue interest, and I have to keep card hopping every year or so). All would be a total pay off time frame of 5 years (from snowball method for the cards, or based on best monthly charge if using a loan), barring any windfalls or bonuses (which is how i just paid one card off). I am capable of putting a small monthly renewing purchase on a credit card to keep it open and otherwise not touching it (my spouse, not so much. Which is why we don't have joint cards), so I'm not worried about any other cards closing on me (the recent one was a mistake. an annoying mistake). BUT I really get choice overload and am never sure what decision to make. Thoughts/opinions? Thanks!!! (I am trying to make enough space in the budget for a 4-500/month car payment, as my 24 year old vehicle is hitting the "everything needs replaced" time point….)