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Gale143

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Is taking out a personal loan to repay debt and get a car a bad idea?
I am looking into taking out a $5,000 loan to consolidate some of my student debt and to get a car. My credit is fair and I'm worried it might hurt me more than help me.

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Not a good idea since the interest charged on a personal loan is higher than what you  would pay on any of the student loans or the car.  Please take the time to read the articles shere and use the financial tools so you can understand how credit works and make smart decisions based on accurate knowledge

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Going further into debt to try to get out of debt is not the answer.

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Any new loan will hurt your score, read about inquiries and average age of credit.

Will this loan pay off your student loans in full? If not then NO you do not borrow money to make regular payments.

If it will then....Will it hurt you financially is what you need to study most. What interest rates are you paying for your student loans, is there a program specifilly to consolidate those alone for better interest? What interest rates will you pay on a personal loan? To know that you would have to talk to your bank or credi union and have an inquiry hit your score. Once you have that information along with how long you are paying for each case, then you can make a wise choice as to if it might save you money.  Many vocational schools charge an arm and a leg in interest, so it might help, but without specifics and some homework on your end, no one can say for sure.  The odds are that you can not help yourself much with that small of debt.

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