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Question By
julesdouce

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Credit Card Debts w/High Interest Rate - Transfer Balances or Get a Loan??
I have 2 credit cards totally $7k with 29% interest rates and poor credit (577 CK score). Should I transfer to a lower rate card or try to consolidate in a loan? I'm concerned whether I would be approved for either. I used to have GREAT credit but has declined the past year since losing my job. The monthly interest charges and fees are nearly as much as my minimum payment!

What's the best approach to consolidating and lowering the rate?

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It sounds as if you've fallen behind in your payments already. Unfortunately, if that has happened and you don't have sufficient income, it's not realistic to think about applying for any new credit card, let alone one that's going to offer you a great transfer rate.

Consolidation is almost never a good idea, and is also probably out of the question now that things have gone this far.

The only thing I can think of that would get you out of this situation now would be to find some source of income, even something small -- cut lawns, flip burgers, shovel snow, offer freelance services that use your old job skills -- and find a way to keep paying the minimums on one card while you throw a little extra at the other. It might (or might not) also help to call the cc vendors' 800 lines, explain the situation, and see if there's anything they can do. After all, they'd rather have you honestly trying to pay that debt than going into default or declaring bankruptcy.

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