Loan Consolidation For People Who Make Less Than 30000

Uhm...should I get a credit union loan?

I have less than $9,000 in credit card debt. I would like to have one bill but want to know what are the pros and cons to getting a credit union loan to pay them off this way. The cards are all in excellent standing but I do not use them anymore and I keep one for emergency purposes. Should I go for the credit union loan and pay them off or pay them individually like I am now?

Hmm...Credit Unions are easier to get loans from, and their interest is usually a little lower then banks.

But take this warning with you. Over the past several years, lots of people have been suckered into getting consolidation loans, home equity loans, or refinancing homes in order to pay off credit card debts. Then those people turn right around and charge up the now-empty cards all over again. They are now in twice the debt, with no hope of getting out. The end up filing bankruptcy.

Last year many thousands of people did just that.

If you plan to go this route, you MUST control your credit spending. Don't close your credit accounts, but rip up the cards so you can't use them for a while. Call and get the credit limits lowered to around $500, and don't let them jack them up again (they will, trust me).

This is exactly what has happened to many of the people I am trying to help out. Credit card companies make it so easy for you to get credit these days.