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Question By
Jessalynn94

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Should I consolidate my debt?
I have about $8,000 in credit card debt and $8,000 in federal student loans. (I'm still in school)

My main concern is the credit card debt. I think I can have the full $8,000 paid off in five months if I just make larger than minimum payments on each card. I understand I'll still be accruing interest but I somewhat have that figured in my little five month plan.

But should I consolidate the credit card debt instead? What are the benefits? Does a consolidation hit my credit hard? Does a consolidation show up on your report and if so, for how long? How does the process work?

My credit score is 599

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It's not worth it.

If you can pay it off in 5 months you'll be better off. Yes your paying interest but if you consolidate you'll end up paying for a couple of years and end up paying more interest in the long run  If you can afford to pay $1600 a month in payments by all means due it. Same with those student loans. Pay them off as soon as you can. 

Paying the minimum only makes money for the credit card companies. They want you to take as long as possible to pay them. On average most cards want a minimum payment of 1% or less a month. So you can figure that it will take you 8 years to pay it off, if you never charged anything else on that card. 

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