Has anyone ever turned their credit card balance into a loan?

[Clippy]

I think I'll go into my bank to talk about it - I have a sizable balance and need to do something

 

[ralphc1]

I just pay mine off every month.

 

[Clippy]

I just pay mine off every month.

Ok good for you but after I broke my back and my wife was in the hospital and my car broke and everything else happened my balance went up and I couldn't pay it off - so the backlog is too much for me to handle

 

[Milgrim]

You may have to go back to MMA. Clip v Punk is the fight to make.

 

[llperez22]

I have. I had 2 credit cards with about 10k +/- in debt between them. High ass interest rate. Went to my bank and had them give me a loan at a significantly lower interest rate to pay off the credit cards. Part of the process is I had to cancel the credit cards in front of them and turn them into the bank to be destroyed on the spot. And the loan is open ended meaning i can borrow against it at any time. Its basically a credit line i have through the bank. And of course my money spending ass hasnt came close to paying it off. I keep making payments then borrowing back against it. Its as simple as transfering over cash on my phone via an app into my checking account.

 

[Clippy]

I have. I had 2 credit cards with about 10k +/- in debt between them. High ass interest rate. Went to my bank and had them give me a loan at a significantly lower interest rate to pay off the credit cards. Part of the process is I had to cancel the credit cards in front of them and turn them into the bank to be destroyed on the spot. And the loan is open ended meaning i can borrow against it at any time. Its basically a credit line i have through the bank. And of course my money spending ass hasnt came close to paying it off. I keep making payments then borrowing back against it. Its as simple as transfering over cash on my phone via an app into my checking account.

If they make you get rid of your credit card than that option is out for me - I have pre-authorized payments and need to be able to stay in hotels etc

frig sakes

 

[HIMBOB]

No but I have helped people do it.

You want cheaper interest and the ability to pay it off early without incurring the full interest cost.

I would also spend 15 mins on google so you know a good rate from a bad one.

Look out for fees, they often can charge a regular monthly fee and sucker you in with an apparently low rate.

If you have questions quote me when you ask them.

Don't rush (nothing is a worse buy than expensive money), but doing nothing achieves nothing.

 

[llperez22]

If they make you get rid of your credit card than that option is out for me - I have pre-authorized payments and need to be able to stay in hotels etc

frig sakes

you can transfer all the pre authorized payments to your bank card and use your bank card like a credit card. Thats what I do.

 

[HIMBOB]

Or PM if you don't want to discuss openly.

 

[Clippy]

No but I have helped people do it.

You want cheaper interest and the ability to pay it off early without incurring the full interest cost.

I would also spend 15 mins on google so you know a good rate from a bad one.

Look out for fees, they often can charge a regular monthly fee and sucker you in with an apparently low rate.

If you have questions quote me when you ask them.

Don't rush (nothing is a worse buy than expensive money), but doing nothing achieves nothing.

I'm hoping the loan will work out so I owe less per month than what my current minimum payment is - is that realistic?

 

[Clippy]

you can transfer all the pre authorized payments to your bank card and use your bank card like a credit card. Thats what I do.

I like not having to worry if I have a balance to draw from for all these things, car insurance, internet bill, etc etc

 

[llperez22]

I like not having to worry if I have a balance to draw from for all these things, car insurance, internet bill, etc etc

agree but like i said it an open ended loan. If i dont have the cash in my checking account, i can transfer over the money from the loan at any time on my phone with a push of a button. Of course there is a cap you cant borrow past, but credit cards have that too.

 

[HIMBOB]

I'm hoping the loan will work out so I owe less per month than what my current minimum payment is - is that realistic?

Maybe, depends on your card and new loan term.

Typically credit cards have a low minimum payment (2% monthly) so you maintain the balance for longer.
Loans want to see repayment so are typically higher per month but encourage you to actually kill the debt.

 

[llperez22]

but i know what you mean about not having to worry about any of that and just having a credit card to keep things simple

 

[HIMBOB]

I like not having to worry if I have a balance to draw from for all these things, car insurance, internet bill, etc etc

A bit of worry is a good thing if it encourages better money management.

 

[ralphc1]

If they make you get rid of your credit card than that option is out for me - I have pre-authorized payments and need to be able to stay in hotels etc

frig sakes

Talk to your bank and see. Credit card interest is often very high. Even bank loans are high compared to the interest they pay depositors. Banks might look at your spending habits to decide if you abuse credit cards.

 

[HIMBOB]

agree but like i said it an open ended loan. If i dont have the cash in my checking account, i can transfer over the money from the loan at any time on my phone with a push of a button. Of course there is a cap you cant borrow past, but credit cards have that too.

That's more like an overdraft.

 

[Clippy]

Maybe, depends on your card and new loan term.

Typically credit cards have a low minimum payment (2% monthly) so you maintain the balance for longer.
Loans want to see repayment so are typically higher per month but encourage you to actually kill the debt.

Yeah I'm starting to think this will not work out like I want but will still have a conversation with my bank - they offered this to me last time we met but I never got into a proper discussion about it.

I've had a balance for YEARS and I'm maintaining it but losing ground at a slight pace - super slight pace since the beginning, like a pinhole leak in a ship. It's not imminent danger, but I want this water outta here

Ya know?

 

[Clippy]

A bit of worry is a good thing if it encourages better money management.

But I need more faberge eggs

 

[Clippy]

Talk to your bank and see. Credit card interest is often very high. Even bank loans are high compared to the interest they pay depositors. Banks might look at your spending habits to decide if you abuse credit cards.

They always know what I'm doing anyway, right?

I mean having them look at this won't make them go "OH FUCK WE GOTTA STOP YOU NOW!!!"

... right?