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How Can We Easily Pay Off Our High Interest Rate Debt? – Dea

“Dear Steve,

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

We have high interest rate credit cards totalling $60,000.00 that we need to pay off. We own a home. We think it would appraise for about $250,000 & we owe$198,000. We own two 2002 vehicles. We would like to get rid of the credit cards expect one a piece with a low limit. We are both full time employed. We would like a 15-20 year plan to pay this off with the option of paying off sooner without penalty. Our credit scores are good. We are not past due or over limit on anything. We need to start getting this unbelievable debt payoff so we can think about a decent retirement.

How can we get this high debt paid out within 15 years? Should we refinance or do a second mortgage to help alleviate some of the high interest rate credit cards. Right now we cannot get these paid down because the interest is as much as the payment – we are getting no where. This is no one’s fault but our own but we need direction on how to get ourselves on the right track with out bankruptcy or anything that would effect our credit.

Dea”

Dear Dea,

It sounds like using a low fixed rate unsecured debt consolidation loan from LendingClub.com might work well for you.

These loans are for a three year period and typically are for a maximum of $25,000. So you could consolidate $25,000 of your most expensive credit card debt in a loan and also use the debt snowball approach for the debt not included in that loan. Once that loan is paid off you could use the same strategy again with the remaining debt.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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