Emily (emkj3606) wrote in repairingcredit,
Emily
emkj3606
repairingcredit

consolidating credit card debt with a personal loan

so, because i didn't go back to work when i had my son a year ago, my husband and i racked up about $7000 worth of credit card debt pretty quickly. we've only just very recently started to be able to get back on top of things and have started thinking about seriously paying it down/building our savings back up/etc in the quest to buy a house.

so, we basically ran $3500ish up on one card twice. we transferred the balance to a 0% APR for a year once, and then promptly accumulated about $3500 again. we've been making the minimum payments on both cards just fine, and are only using the one card (not using the transferred-balance card at all) in cases of dire emergency (need gas and payday is still a week away, etc). however, the transferred-balance card only has a 0% APR until march, and then it jumps up to (i think) 15%. our regular card has an APR of 13.9%.

we've thought about doing credit consolidation, but those companies seem really shady to me and don't appear to be the best idea. so our new thought is to get a personal loan from our bank to pay off our cards (and not use them anymore!), have one payment and a lower interest rate. we haven't spoken to our bank about this yet, but it seems like a good idea.

my husband has stellar credit (last check his score was 790) and i have sub-par but improving credit (my score's hovering right around 600).

is this a good idea? are we missing any major red flags? am i just being simple-minded and this is the worst idea ever? what do you folks think?
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