Personal loan interest rate is lower (15.05%) than my 3 credit card interests rate (24-26%) Everytime I make a payment over my minimum, I feel like it’s doing very little to put the balance down. I’m just worried if it’s a bad idea or I’ll be ripping myself off.

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barrycarter t1_jeeft4r wrote on March 31, 2023 at 12:45 PM

#2,526,535

Have you looked at low interest balance transfers with no or low fees? 24-26% seems high to me for credit card interest, even given recent inflation, but is apparently normal. Are you paying a punitive rate because you missed payments?

lilfunky1 t1_jeege55 wrote on March 31, 2023 at 12:50 PM

#2,526,732

Replying to barrycarter (#2,526,535)

> 24-26% is very high for credit card interest, even given recent inflation.

it's a pretty standard interest rate for a card that isn't advertised as a low interest card

garebear36 t1_jeegmrf wrote on March 31, 2023 at 12:52 PM

#2,526,816

I used sofi to consolidate my 3 credit cards with a lower interest rate. Don't remember exactly what it was but yea switching to a lower rate will help pay it off quicker and save money.

lilfunky1 t1_jeegns7 wrote on March 31, 2023 at 12:52 PM

#2,526,825

if you go this route i would recommend lowering the limits on the cards so that you aren't tempted to run up the cards again and double your debt.

barrycarter t1_jeegtnf wrote on March 31, 2023 at 12:53 PM

#2,526,880

Replying to lilfunky1 (#2,526,732)

I hate being wrong, but I hate not correcting myself even more, and it turns out you are correct: https://www.forbes.com/advisor/credit-cards/average-credit-card-interest-rate/

soks86 t1_jeet4gf wrote on March 31, 2023 at 2:24 PM

#2,531,044

Why not?

It sounds like a very good idea to lower the % you're paying.

This will also lower your revolving credit balance so the personal loan + 0 balance credit cards should boost your score and potentially open up lower % opportunities.

Especially true if you can get a loan _without_ origination fees.

Jjvaa15 OP t1_jeffxs6 wrote on March 31, 2023 at 4:53 PM

#2,538,573

Replying to lilfunky1 (#2,526,825)

Haven’t touch the cards since August. I have even locked them to not tempt myself. I have no problem paying them off it’s just I’m trying to help see myself save money so I don’t spend so much on interest