No. of Recommendations: 0
I am actually trying to get OUT of debt, however, this is a challenge for me because I currently have a combined debt (including car note) of about $20K.

I am in need of a new car and will need to get one by August of this year, when the warantee on my current car runs out.

As I mentioned to another poster (who also suggested I post this message here), My current car is 8 years old and is starting to "act up" and I am not comfortable driving a car without a warantee.

I just don't feel it's worth it to pay an extra $2500 for a warrantee on a car this old with almost 85K miles on it.

If I'm being irrational, please let me know.

Anyhoo, I am considering taking out a loan to pay off all the credit card debt which is about $14K of the combined debt, so that I can have only one payment a month with a lower interest rate.

However, my credit history is good (no late payments and nothing in default) but my credit scores are low because I am currently using up to 95% of my available credit on all of my lines.

I am afraid to apply for the loan because:

1. I don't think the bank will give me that much money

2. I don't want the inquiry on my credit report if I am denied

3. I have a feeling that if I take out this loan, it will be very difficult to get financing for a new vehicle.

I live in a D rated region, so I don't make the money I was making when I lived in NY. My current income is only $38K.

I need some advice on what to do. Please help!
Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.