Good or bad? Dh and I are talking about this lately we owe one CC $4,000 and the furniture $4,121 if we get approve for a $7,000 loan we can pay off both. I know we are still going to be short but if we pay the furniture early it knocks the interest down a lot. So I think that $7,000 is enough. Even if we pay $200 in one paycheck to make the difference its still going to break us even. Our original plan was to pay off two cc we have that has the low balance then the cc with the $4,000 by making payments of $900 monthly which will be paid off in December then the furniture by the end of March next year. We are saving $400 monthly right now that way when March comes next year we can use that money to pay the furniture off. We are tackling a new problem right now because DH car sometimes doesn't start when its cold outside. So we are thinking about getting a use one for $3,500 after everything gets paid. I guess that's going to be the tax refund next year. Either way our original plan is to pay everything off by March next year and when we do get approve for a loan its going to be the same time if we make $900 monthly payments on that. I know its confusing and I am confuse too right now because we are going to pay another debt after everything gets paid the difference is instead at four different places its just be going to one place.

Well...you aren't really paying any debts off early, you are just consolidating into one payment.

If I am reading your post correctly, you will be paying everything off at the same time whether you get the loan or stay on course with the payments as you are now. Also, would you be paying the same amount monthly either way? Why bother getting a loan at all if it's not even going to get you a lower interest rate?

Yes that's right same amount monthly but DH is heading towards getting a loan to pay off the debts early and just pay the $7,000 until March of next year. I guess his talking about the interest in our furniture he wants to knock it down and pay it early. I'm kind of ify about it because we are still be paying interest on the $7,000. I like Dave Ramsey's plans but at the same time I'm trying not to contradict myself because DH almost pursuade me about getting a loan. I like our original plan better pay one debt at a time and the same time save an emergency fund to be use later to pay the furniture off. Either way we will be done paying everything in March next year. I just don't like getting a loan because we have to start all over again and God knows how much the interest on that going be but its seems like a good idea right now To make matter worse his car doesn't start when its cold outside. So we are looking on getting a use one after everything gets paid.

This doesn't sound like a good plan. I think you should write down all you have in debts, w/the interest rate, how much it will cost you in total and monthly, and how long it will take to pay. You are throwing other things into the equation after the fact, so we don't know your total situation. Your husband seems very impulsive, without looking at all the long-term facts, and you are smart for being more cautious.

Write it all out, then do your scenarios, figuring out how much each will cost in the long run, and see if it will meet your goals. Nothing so far suggested has made financial sense. Why take out a new loan at the same rate? You'll end up paying longer, and more in the long run. You need to get your numbers down and compare apples to apples.

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I did consolidate my loans and credit card balances into a loan one time. The loan was for a lower interest rate and it was a set amount of time. I liked that and it did work for me.

The thing that sounds confusing with yours is that it doesn't sound like you will be consolidating all your loans and I don't see where you will be saving by having a lower interest. (Maybe I got confused reading it though) I would write down your balances, when they are due and what the interest rates of each are. If you can find a loan with less interest than all of them, then I would do it, otherwise, there really is no point.

I must strongly suggest if you do this, cut up the cards and close the accounts in writing. Then you can be sure you won't use them ever again.

Pretty much what DH was trying to do is consilidate all our loans into one so that we can pay them off early. Then focus on paying back the loan with $900 a month. Yes sounds like a good idea but we don't know how much the interest on the loan is going to be. The one CC with $4,000 our plan is to pay $900 a month starting this September until its paid off around December. The loan will only get us into furthur debt instead of getting out of debt. I have a feeling that the interest is not going to be low so why bother?

I gotta tell you...this whole post doesn't make sense.

I agree with desertmom. I don't think your husband thinks things through before coming up with his plans of action. Thank goodness you seem to realize when his decisions aren't really adding up. Does he think that somehow a loan isn't debt?

You only have 8 or 9 more months to go...I would just keep going like you are and forget about a loan. Unless you would get a significantly lower interest rate AND would still pay the loan in full in 8 or 9 months.

And if you just want to pay them off early, you can do that without consolidating our taking out a new loan - just pay extra on each one.

Personally, I'd take any extra $ and save either toward car repairs or toward a new car.

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Dh always thinks he knows a lot of things and confuse me even more with our situation getting a loan with lower interest will not happen I just have a feeling. All our debts have either 12% or 9% interest on them. I know I'm confusing some of you and I am confuse too with his plan of actions that's why I'm very cautious about it.

Well, I know that you are starting with Dave R.'s Financial Peace, right? Now, I am not saying that he is the "be all and end all" when it comes to financial issues but there are many things that make a LOT of sense and what you are doing goes against it.

First of all, get a "baby emergency fund" of about $1000.

Once you have that, put ALL extra money towards your debt. If I understand right, you are saving money to pay off one of your debts next spring??? Do it now!!! Pay off the smaller debts first and then tackle the bigger ones. From the sounds of it you might even be able to get it done sooner!