Thank God for credit unions! I applied to my credit union for a debt consolidation loan at 12.00%. I was approved for $7k. Soo...here's the plan.... I have Discover Plat with 1.9% balance transfer until 9/1. I've already transferred my Providian MC balance (with no grace period) and my Retailers National Bank accounts. I still have to transfer my Circuit City (when the bill comes). I'm on a no interest/no payments thing with Sears that expires on 8/30. I was going to transfer that to Discover but I'll transfer that directly to my credit union account in August (since I won't be able to take advantage of the 1.9 with Discover for long if at all). The middle of August, I'll transfer my Discover Plat balance to my new consolidation loan (since the interest rate on my Discover Plat will be higher that 12%). It's a loan with a fixed payment so I may as well take advance of the full amount. I have an Associates (my oldest card) that they closed (damn them) more than a year ago. I've been on-time with payments, etc. Since I have NO negotiation power at ALL with them, I'll pay them off and see if they'll re-open my account. I just want to keep them since it's the oldest. My other cards include CapOne (that I just got an increase on) and my Providian Visa (at 16.9% APR). I'll pay them down and use them sparingly. This is REALLY going good for me!
Watch out for Credit Union distributing the FUNDS, and closing your accounts. Make sure you get the check in your hands.
I will. It's actually a closed end loan and I really want a line of credit that can "act" like a credit card. I want to transfer the balances when I'M ready. So I'm calling the loan officer back and seeing if I can change it to a line of credit. I'll be frank and tell him why...I don't want them "handling" my finances for me. I'm capable. Thanks for the heads up!
SHantel, We got a consolidation loan about 15 years ago through a local bank. At the time, it was a pre-requisite that they handle all the money and send out the checks directly from the bank. They also closed the accounts. The reason is that they didn't want us to have this new loan, get the money and spend it without paying off the cards and still have all the cards too. They also didn't want us the pay off the cards and then be able to have the new loan and empty cards that we could then run back up again. Definately call the bank and make sure they will let you handle things on your own. BUT, be prepared if they don't. You might want to call soon. If they won't do the loan any other way, you might have a few days to cancel the loan in the early stages.
