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Old 11-30-2016, 07:28 PM
Leemba Leemba is offline
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Smile Installment Loan Vs credit card help

We are hoping to buy a house in 18 months and I am currently trying to free up our debt to income ratio. I currently have an installment loan at 11% interest and making a payment of $350 per month. I have a credit card offer at 0% interest until January 2018. I also have about $400 to $500 per month extra to pay on debt. Would it be better for me to use the 0% interest credit card to pay off the installment loan and then use that 350 and the extra money to tackle the other debts we have or just start tackling the debt?

Thank you!!!
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Old 12-06-2016, 07:57 AM
theviewabudhabi theviewabudhabi is offline
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Posts: 35
Default Re: Installment Loan Vs credit card help

Get rid of the debts ASAP from my opinion and then plan other things.
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Old 12-12-2016, 08:42 AM
Paul@GFS Paul@GFS is offline
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Default Re: Installment Loan Vs credit card help

Well it depends on your financial situation. If you're confident enough to settle the installment loan first, then you may proceed with that since you have the 0% credit card offer for another year. But what I usually see under such circumstances is that the borrowers take the plunge in settling the debts first.
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Old 12-26-2016, 11:30 PM
Jovanny Jovanny is offline
Join Date: Aug 2016
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Default Re: Installment Loan Vs credit card help

I would suggest you to pay off the installment loan.
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Old 09-07-2017, 03:01 AM
g_nicks g_nicks is offline
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Join Date: Jun 2017
Location: New York
Posts: 22
Default Re: Installment Loan Vs credit card help

A credit card is a line of credit from which you can borrow money at any time, up to your credit limit. A personal loan is a fixed loan which you repay in equal installments for a predetermined period of time.
A*credit card is what’s known as revolving debt. A credit card has a credit limit that you can use as often as you like and it’s up to you to pay the entire balance off at the end of the month. If you don’t, you begin to “carry a balance”—you’re paying interest on a debt but you still have the ability to make new purchases.
A personal loan, on the other hand, is a fixed debt. You receive a fixed amount of money and repay it in equal installments over a fixed number of months.
The danger with credit cards, of course, is that you can always charge more at any time up to your credit limit, keeping you stuck in debt. With a personal loan, you know when your debt will be repaid and that*you can’t borrow more money without completing a new loan application.
Like a credit card, a personal loan is unsecured,*as opposed to an auto loan or a mortgage, which are secured*by the vehicle or real estate they are used to finance.The difference is if you stop paying a secured loan, the bank can repossess your car or foreclose on your house.*For this reason, interest rates on personal loans are higher than secured loans but, in some cases, personal loan APRs can be lower than*credit card rates.
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