39

Plus one to Alexandre for pointing out this is possible. It is also possible to run with scissors, and I would recommend neither. Your money problems are very small and doing something so dramatic to solve them will probably put you in a worse financial decision. Why would you put your home, at risk, to pay off such a small amount (less than 5K)? The "...


27

You lose significant rights doing a private consolidation of federal loans. You lose few if any rights doing a federal consolidation. Because you anticipate your employer will pay off all of your loans, a federal consolidation into a single loan may be worth doing, (if required to qualify for your employer's program).


17

Typically you can use credit card balance transfers to consolidate some, or all, of your other loan balances in one place. The interest rate might be lower. Some prefer to make one payment rather than multiple payments. There is typically a fee that is imposed by the card that is originating or creating the loan. This would be the credit card you are ...


16

Looking back I have a car loan paid in full and even paid off early, and 2 personal loans paid in full from my credit union that don't seem to reflect in a positive way and all 3 were in good standing. But you also My credit card utilization is 95%. I have a total of 4 store credit cards, a car loan, 2 personal loans. So assuming no overlap, you've ...


14

Yes this is possible. The most likely tool to use in this case would be a Home Equity Line of Credit (HELOC). This is a line of credit for which the full amount is backed by home equity (difference between market and book prices). Most likely your financial institution will apply a factor to this collateral to account for various risks which will reduce the ...


11

Since you are not paying the full balance off each month you are carrying a balance from month to month. That balance is being charged some interest rate X. With a balance transfer, the new credit card pays off that balance. As a result you now have a balance of the same amount (plus any processing charges) on the new credit card. Hence the balance has ...


9

You'll be paying more interest for a longer time if you include the loan in the consolidation. My calculation suggests you'll pay $2,485.29 more in interest on the loan if you consolidate it to the higher rate for 4 years instead of paying it off at 9.24% in 3.5 years. If we treat the credit card as a 4 year loan with a $6,300 balance you'd save $974.59 by ...


9

Your statements are logical, it should be easier to afford, however this is often not the case. Most in your situation, after getting the consolidation loan, continue the same habits that got them in the mess in the first place. So in most cases people have the consolidation loan payments along with about the same amount of debt payments. Which increases ...


6

The weighted average of the interest charged to your loans comes to 5.73%, so mathematically the refi does work in your favor, but only slightly, about a half a percent. Are there other factors in favor or detriment to refinance? Things like fees, or loan forgiveness? That would really tip in one favor or the other. For example, when I refi'd my student ...


6

You have to weight the risks and gains for each variant: For federal loans, there might be some partial or total forgiveness one day. Could be you get something from that, but could also be that it never happens;it’s too late for you; or you are not affected - the probability is your guess. By consolidating them now you will lose this potential gain. On the ...


5

Note: the question is tagged united kingdom, this is a UK focussed answer practices elsewhere may be different). A balance transfer moves your debt from one credit card to another. This can be a good way to get a debt onto a lower (often zero) interest rate. There will usually be a transfer fee but with a good balance transfer deal the effective interest ...


5

His debt is sixty monthly incomes, five years worth. That's substantially more than my first house was. And I had 25 years time to pay it back, his lenders ask for monthly payments where 20 months payments equal the debt. That amount of debt is lethal for him. You can of course help him. Many people in the USA or the EU can find $45,000 or equivalent, ...


4

I agree with Hart CO's excellent answer; you are much better off financially in your current situation than if you consolidate as stated. If they are willing to give you a loan for $37.5K at 11.59% for 4 years, then I can't think of a good reason they wouldn't be willing to give you the same terms for just $6.3K instead. I would ask them for the smaller ...


4

A balance transfer is paying one debt instrument with another. While this is typically seen in credit card offers it isn't necessarily confined to credit cards. Obviously the only reason to do this is refinancing debt to a lower interest rate. You need to watch for loads on the incoming money, there may be an upwards of 5% fee. This calculation is ...


3

From the card issuer's point of view, the purpose of balance transfers is very simple. A credit card company wants you to owe them more money, so they will make more profit getting more interest payments from you. To do that, they will offer an (apparently) good deal to transfer the debt that you owe to other companies onto their card. The deal may ...


3

Fixed term or variable term for a student loan of 155,000 This is more opinion based. It is like predicting what would happen in future. From the current number; 10 year variable at 4.26% = $1,596.66/month If we go with assumption that variable rates will rise by 0.5% every 2 years; then it is still recommended to go with variable. If the rates ...


3

You're choosing between a variable rate and a fixed rate. As such, you are basically betting whether interest rates will rise or not. You're going to pay a good bit more with the fixed rate in the short term, in exchange for surety against interest rates rising significantly in the long term. The more you'll pay off early (and shorten the time in which ...


3

Others have covered the usual vehicles for getting money out of a property. There's another category of home loan called a hard money loan. It would take a lot of inquiries to find a hard money loan given your needs, but chances are its doable. The terms can be onerous, and hard money lenders don't mess around when it comes to foreclosing after a few missed ...


3

According to eHow: Loans can only be re-consolidated if the borrower has a new loan to add. ABC News says: In 2006, Congress eliminated joint consolidation loans for married couples So it would seem that you can consolidate her loans into one or two loans, but those cannot be combined with yours.


3

First, you need to be clear about what type of advice you are looking for. From the details in your other question, it looks like you have about 5 years or so left on your loan. If you add $200 a month to your payment (applied to the principle), you'll cut your loan in half, finishing it in 2.5 years, and saving about $1000 in interest. You said that you ...


3

Look at the interest rates. You are paying 12.95% interest now. You would be paying 13.95% interest for the loan. How could it make any sense whatsoever to take the loan? Things that you can do: Look for a loan for less than 12.95% interest. Find a new credit card that lets you transfer debt and is interest free for some time, looking very ...


3

This page at the Department of Education's Student Aid site summarizes the payment plans available. In particular, you should note that parental PLUS loans are not eligible for income-based repayment. If we were back in the Stone Age, when I had to write actual checks to pay off loans, I'd advocate for maximum consolidation, just to reduce the paperwork. ...


3

tl;dr; Do the refi and don't worry about your credit score. The refi as you described can save you almost $500 in the first year, and likely thousands over the course of the loan. The slight dip to your credit score due to the hard inquiry is only temporary, and it will likely be just one instead of multiples. Regarding the Average Age of Accounts change, ...


2

If, as you mentioned, you don't get a psychological advantage from having fewer loans, the best method for saving money is to paydown (or refinance) the loans with the highest interest rate first. To consolidate loans, you are unlikely to receive a lower rate unless you have an asset to back the new consolidated loan. When interest rates are offered, ...


2

You can. You can take out a conventional mortgage and keep the cash. A mortgage is nothing but a secured loan against your home. You can open a HELOC and treat it as a negative-equity bank-account. Note that both a mortgage and a HELOC tend to have significant up-front or administrative costs attached to them. It costs the loaning institution some money ...


2

Assuming that your car is worth significantly more than $23k (otherwise you'll be underwater soon), and your income is more than double the value of the car (a rule of thumb as to whether a car is affordable), this is okay, so long as you don't take on any more debt. It's easy to feel like you got a "raise" when you lower your debt payment, and to start ...


2

Ok, so, you don't say how much time is left on the current loans, so I had to make some assumptions. The $297 current minimum payment for loan #4 suggests 6 years left, but that doesn't jive with the $565/mo payment for all the loans in aggregate (for which 7 years remaining is nearly identical to your numbers). I'll assume 7-years are left for now and ...


2

Assuming you stay with the employer for 2 years and they pay your consolidated loan for 2 years then the terms of the consolidated loan practically do not matter. The only possible fine-print item which could matter is a pre-payment fee. If the loan doesn't allow you to pay it off early then that could be seen as a disadvantage. Aside from that, congrats and ...


2

The main advantage you'll lose by consolidating your debts is that you lose the potential options from selectively repaying specific ones early and (unless the rules changed from when I did it) for federal loans end up paying a weighted average of the rate across all your individual loans. Generally what you'd want to do there is to repay the highest ...


1

Short answer: yes, you can use a 529 plan to pay for refinanced student loans. As long as a loan is eligible for the student loan interest deduction it is also eligible to be payed out of the 529. Long answer: Refinanced student loans (bar some exceptions) are considered "Qualified Student Loans" just like the original loans were. This is described in the ...


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