Is This Unsecured Debt Consolidation Loan the Best Way to Pay Off My Credit Cards? – John

“Dear Steve,

Have numerous cards ( 3 standard visa cards , 2 store cards, gas card) most of them close to being to max limit. I make the monthly payments on time and have been for years. However the interest rates on them are really high on a few and was wondering if doing the unsecured consolidation loan was the way for me to pay them off and still keep the cards .

My credit score is somewhere between 675 and 700 and all my income is from my spouse. I have gotten new credit with them as my income source so no issues there . they make sure my side of the bills is paid on time.

Would the debt consolidation loan assist me in getting them paid off and able to keep the cards ? I dont want to close them nor do I feel i need to .


Dear John,

couple workingFirst I’d like to address the “my side of the bills” statement. Its been my experience that couples that keep his side and her side often do not have an open and transparent awareness about the status of the entire household financial condition. It’s just something to keep in mind moving forward. At least sit down once a month or once a quarter and put everything together in one place and have a conversation about your current financial status and your future financial goals. Nobody wins with financial secrets in a relationship.

That being said, it sounds like you might be a good candidate for an unsecured debt consolidation loan based on what you shared. The places I normally send people are the peer-to-peer lending networks Prosper and Lending Club.

Both Prosper and Lending Club offer this site a referral fee but my observation is that Lending Club is actually funding more loan requests these days. Some as quickly as three days.

In an effort to help site readers, what we do is use the referral fee we get to help fun the loans. If you decide to go with and your loan request is approved, let me know what your loan number is.

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Paying off your cards and keeping the card open is the best way to boost your credit score moving forward. There is no requirement to close them. The bigger issue though is you will need to be very careful to not run the cards back up again.

My suggestion is that you carefully look at what the underlying issues were that caused you to get so indebted and not make those same mistakes again.

Keep in mind that the interest rate anyone will charge is based on risk so the lower your credit score is the greater risk you are and the higher the interest rate will be. also reports to the credit bureaus so your on-time payment history with them will be helpful as well.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

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