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jeffs394

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Thinking about consolidating credit debt but maybe building a house soon
I have almost 15k in credit card debt. I have a total available credit amount of about 67k. I'm looking at using lending club to have one payment and make it simple to make a single payment. My score is a little over 700. I recently inherited some land. I intended to build on it within a year. Looking to see if using lending club to consolidate my debt would be beneficial or not. I have no problem with creating more debt due to being young and dumb. Ready to plan for the future and eventually become debt free except for a mortgage

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Better idea: Pay down the balances as best you can, starting with the small-balance cards then working your way to the bigger ones. Consolidation is almost as bad as continuing to pay minimum balances because they pad the total to accrue interest anyway. If you pay down the little ones first, they stop accruing interest... which leaves you more money to start slaying the bigger ones down to $0. Now, don't get rid of the cards unless they have an annual fee (in which case switch to cards that don't have one). As for building your house, that will require a construction loan. Whle you have the advantage of owning the land free and clear (which would be put up for collateral), note that lenders are still going to be hella picky about giving construction loans. They will want to know and approve of the contractors, their terms, and will demand that milestones be set for all phases of construction. Note that construction itself will take anywhere from 3 to 12 months from final approval to move-in (depending on the house, how big it is, permitting processes, etc)... and you may well be paying on that mortgage the whole time, in addition to living somewhere else (even if it's in an RV somewhere onsite).

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