“I have a lot of financial shame regarding the place I’m in”: Struggling with credit card debt after grad school & pandemic. Should I consider a personal loan?

Hi Money Minder,

I’ve been trying to tackle my credit card debt from grad school and the pandemic, and right now I have a total of $16,349.50 spread out over three cards. The monthly payments are adding up to around $650-$700, and it’s tough to make a dent in the balance with all the interest piling up. I’ve always made my payments on time, but it’s taking a toll on me financially.

I’m feeling pretty ashamed of my financial situation and I’m wondering if it might be a good idea to look into getting a personal loan to consolidate my debt. Do you think it’s a good move for my credit score and overall financial health in the long run?

I’d love to hear from others who have gone through something similar, or if you have any recommendations for trustworthy loan services. My credit score is currently at 695 for reference. Any advice you could offer would be really helpful!

Farewell,

Response from THE MONEY MINDER:

Hello There,

Hello,

I understand the burden of carrying credit card debt, especially given the circumstances you’ve described. It takes courage to address these financial challenges head-on, so I commend you for taking this step. It’s evident that you are responsible with your payments, but the interest rates can indeed hinder your progress.

Considering your situation, it might be beneficial to explore the option of taking out a personal loan to consolidate your credit card debt. By doing so, you may have the opportunity to secure a lower interest rate and streamline your monthly payments into one more manageable amount. However, it’s crucial to research and compare loan services to ensure you find one that aligns with your needs and financial goals.

With a credit score of 695, you are in a decent position to qualify for favorable loan terms. As you navigate this process, be mindful of any potential fees or terms associated with the loan. Creating a detailed repayment plan can help you stay on track and ultimately reduce your debt more efficiently.

In addition, I recommend seeking guidance from a financial advisor or counselor to explore all your options and create a solid financial strategy moving forward. Remember, taking control of your debt is a significant step towards achieving financial stability and peace of mind. Stay focused on your goal, and I believe you can make meaningful progress in paying down your credit card debt.

Best of luck on your journey to financial freedom.

Farewell from THE MONEY MINDER.