What's the best way to consolidate $31k credit cards no equity available but have a $20k car unfinaned?

Hi Leanne whilst I can't give you a 100% certain answer as I don't have full details of your personal situation i.e income & expenses (happy to discuss these details offline) I would recommend that he option that makes the most sense is to apply for a personal lona at low interest rate to consolidate all the cards into one payment. There are several lenders they are offering competitive rates on unsecured loans. I hope this helps & please feel free to contact me to discuss further in need.

I would suggest 0% interest balance transfer to another card. This will generally give you 1-2 years without further interest accruing.

Transfer the balance, cut up all cards so you can't keep spending, pay the debt off before the zero interest period ends.

Hi Leanne

Thanks for using the Eccho app to ask your question.

There are a number of ways that you could approach your situation. Obviously without knowing your exact financial position it does make it a bit harder for me to be sure which might be suitable.

1) Balance transfer the credit cards onto a 0% for 24 months. Then you will need to work out what your minimum repayments will be to pay it off within the time frame. It works out to roughly $1,300 per month. Keep in mind that this strategy does possibly get you into trouble at the end of the 24 month period if you've not paid off the balance in full as the interest rate generally reverts to the cash advance rate. You can always look to do another balance transfer but you unfortunately cannot rely on being approved in the future as each lenders policies can change over time.

2) Use the car as security on a personal loan to access a lower interest rate and if there is a portion of the credit card balance you are unable to put into that personal loan, then look at a balance transfer and work out your repayments as per option 1.

3) An unsecured personal loan for the full amount of the credit card debts over an affordable time frame.

4) When you mention no equity available, is this based on already trying to consolidating your credit cards into a home loan?

More than happy to have a chat over the phone or via email if you'd like to discuss some options - always happy to help :)

Thanks,

Kathleen McCormick
Mortgage Adviser

Hi Leanne, a 12 interest free period on a new credit card balance transfer deal. Close the old cards and pay it down as quickly as possible. Regards Ariel