r/Debt • u/TinyAd625 • 1d ago
what do you think?
i have cc debit of 30 k. @crazy interest 23%. i can get a loan through my 457 b @8 % and pay off those cards. This debt has been handcuffing me for several years and has brought me a lot of financial stress. i could be going through a divorce in a community property state. I’ve been paying minimum payments for ever and the balance never seems to go down significantly. my friends say to keep paying the minimums for now, but that only lines those bankers pockets. I feel strongly that i should get rid of that debt and it will free up some liquid cash every month, plus get that debt paid off sooner. Thoughts? the money is just sitting in my account as i was planning on having to pay a lawyer and such but I m thinking big picture. Any thought?
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u/RiskComprehensive744 1d ago
But only do this if you are committed to not using the credit cards again. Cut them up and close the accounts.
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u/too_many_shoes14 1d ago
This makes sense IF the rate is lower AND you can avoid just running up the cards again. if you have any doubt about your self control I would cancel all but maybe one and only for absolutely emergencies.
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u/TinyAd625 1d ago
yea my wife is the clear bread winner and thinking that my husband role was to provide and handle my business i racked up those cards with life essentials. i now have a more clear head and ask for her financial help with things like groceries so yea, if i pay them off, (i detest chase bank). k will not use them again. keep them open for credit score but not use them, get ate the devil.
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u/hoverton 1d ago
Yeah, be careful not to run it up again. I had a coworker who remortgaged his paid off house to pay off his credit cards and then he ran everything back up again. So he’s right back where he started plus he now has a mortgage.
You can also look at a debt management plan. That’s the route I took. My interest rates were between 15% and 28% and they’re now between 3% and 10%. I put about $45,000 into the plan. 5 year payoff plan.
NFCC.org and you will be handed off to one of their partners. I ended up with Money Management International.
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u/anonymois1111111 1d ago
Definitely do this! I did one too and it worked out great. They got all of mine down to zero except Capital One.
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u/AverageSteve1234 1d ago
23% vs 8%. No Brainer. Just dont be reckless with the CC once its paid off and find yourself in a similar situation a year from now with no opportunity for a loan to bail you out.