Math behind loans....

Posted by alma (68.5.228.79) on September 12, 2002 at 01:06:17:

In Reply to: Re: Unsecured Personal Loan... posted by CC Collector on September 11, 2002 at 23:12:29:

"The 15% loan would knock out my credit card debt immediately and pay for my real estate school so I can start very soon."
The problem is, that if you use LOAN to pay back a debt, you did not knock out your debt, very simply you gave them another name. Instead of $1100 credit card debt you have $1100 personal loan debt. (With higher interest.)You do not have to pay more credit card interest, but you do have to pay high interest for the loan you used to pay back the credit card debt. Instead of paying $100/month for your credit card companies, you have to pay $110/month to your bank. So what was knocked out?
LOAN is NOT plus money.....

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