I'm a recent graduate, working full time (started in January). I have an average of 21.318% APR across 5 credit cards with a debt totaling $11,137, at $302 monthly min.
- CC #1: $2493 at 13.4%, $62 monthly min
- CC #2: $1289 at 17.4%, $26 monthly min
- CC #3: $5183 at 27%, $169 monthly min
- CC #4: $496 at 22.8%, $20 monthly min
- CC #5: $1126 at 25.99%, $25 monthly min
A few days ago I went to Wells Fargo to apply for a Debt Consolidation Loan and their terms are $11,523 (think they see a higher amount I owe?) at 21.755% interest for 60 months. minimum of $320 per month.
Also, 1.5 months ago I got myself a new car (2015 Mustang GT :) ), that's $33650.07 total, 5.79% APR, at $559.28 monthly, 72 months.
My income is $57,717, and with other monthly bills and a set amount for food/other, I'm pretty much dead even in income to expenses. So technically I can make it by. My wife will soon be able to pay half the monthly rent, so that's $550 extra per month for me.
My credit score is around 680-700.
My questions is pretty much: is this debt consolidation deal worth it? Should I just trade down my car? or both?
According to the account statements for my CC's, the payoff at minimums will be between 130 months to 228 months, and the loan will be 60 months. so although the APR is about the same, having a shorter/set timeframe to getting rid of my debt is nice. I know I need to close most of these cards and not use them to avoid getting into the same situation.
I can trade down my car for a $10k-$15k car and hopefully the difference in what my car is worth and the payoff amount (my car is worth about $28k on KBB) will be tacked on to this new car and with at least an OK apr, since I only had this car for about 1.5 months. I'm hoping for around $350 monthly or less with a cheaper car.
Or both? will doing a debt consolidation show up to the car dealership and significantly affect my new car app if I do both within a week span?