But borrow that same amount on a credit card, and you're likely to pay a much higher interest rate. And on top of that, odds are even better that, at some point, as you pay down the card, human nature will take over, you'll eye some amazing gadget in a store and you'll whip out your credit card. The $10,000 that had shrunk to $8,000 is now back up to $9,000. And you're going to stay in debt all that much longer.
So is it a good idea to take out a personal loan instead of, say, charging your purchase on a credit card, taking out a home equity loan, taking out a second mortgage or asking your bank for a line of credit? Here's what a few experts had to say.
"This is a terrific idea on paper," says Gail Cunningham, spokesperson for the National Foundation for Credit Counseling. But she cautions that if you already have credit cards, going for a personal loan can be problematic. "The consumer, regardless of how well-meaning he is, will typically run up his charge cards and, at the end of a year, owe the bank and the credit cards. So often, things that work well mathematically [on paper] don't smoothly translate into practice."
Theodore W. Connolly, a bankruptcy lawyer and co-author of the new book, The Road Out of Debt: Bankruptcy and Other Solutions to Your Financial Problems, says, hands down, "Personal loans are a much better choice." Why? "Basically, I see credit cards designed so you don't rush to pay them back, whereas personal loans are designed for the regular repayment."
The only caveat, of course, is that if you're going to take out a personal loan, you'd better have a really good reason to do so. After all, you're about to commit yourself to going into debt for a number of years, so hopefully you can say "yes" to the critical question: Will it be worth it to be in debt for three or four years because of this loan?
Regular readers of my WalletPop posts know that I have a rich history of being cash poor, and about 10 years ago, I took out two personal loans from Wells Fargo within a few months of each other. They were around $1,500 each and designed to be paid off in about three years. When I took out the loans, I knew they were predatory loans aimed at people who didn't mind or didn't care that the interest rate was high. But I was desperate. I accepted them.
As lousy as these loans were, however, they weren't credit cards. I made my monthly payments, struggling some months to do so, and three long years later, the loans were paid off. Compared to many of the alternatives -- and if you truly believe you can make the payments -- I'd have to say taking out a personal loan could work out well for some people. Connolly thinks so, too.
And Cunningham is for it, but only if the borrower is extremely disciplined and not trying to be too clever about how he or she is managing their debt. "Consumers need to remember that moving debt around is not paying debt off," says Cunningham. "So often people think they're being savvy money managers when, in fact, they're not better off this year than last."
Geoff Williams is a frequent contributor to WalletPop. He is also the co-author of the book Living Well with Bad Credit.
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But borrow that same amount on a credit card, and you're likely to pay a much higher interest rate. And on top of that, odds are even better that, at some point, as you pay down the card, human nature will take over, you'll eye some amazing gadget in a store and you'll whip out your credit card. The $10,000 that had shrunk to $8,000 is now back up to $9,000. And you're going to stay in debt all that much longer.
So is it a good idea to take out a personal loan instead of, say, charging your purchase on a credit card, taking out a home equity loan, taking out a second mortgage or asking your bank for a line of credit? Here's what a few experts had to say.
"This is a terrific idea on paper," says Gail Cunningham, spokesperson for the National Foundation for Credit Counseling. But she cautions that if you already have credit cards, going for a personal loan can be problematic. "The consumer, regardless of how well-meaning he is, will typically run up his charge cards and, at the end of a year, owe the bank and the credit cards. So often, things that work well mathematically [on paper] don't smoothly translate into practice."
Theodore W. Connolly, a bankruptcy lawyer and co-author of the new book, The Road Out of Debt: Bankruptcy and Other Solutions to Your Financial Problems, says, hands down, "Personal loans are a much better choice." Why? "Basically, I see credit cards designed so you don't rush to pay them back, whereas personal loans are designed for the regular repayment."
The only caveat, of course, is that if you're going to take out a personal loan, you'd better have a really good reason to do so. After all, you're about to commit yourself to going into debt for a number of years, so hopefully you can say "yes" to the critical question: Will it be worth it to be in debt for three or four years because of this loan?
Regular readers of my WalletPop posts know that I have a rich history of being cash poor, and about 10 years ago, I took out two personal loans from Wells Fargo within a few months of each other. They were around $1,500 each and designed to be paid off in about three years. When I took out the loans, I knew they were predatory loans aimed at people who didn't mind or didn't care that the interest rate was high. But I was desperate. I accepted them.
As lousy as these loans were, however, they weren't credit cards. I made my monthly payments, struggling some months to do so, and three long years later, the loans were paid off. Compared to many of the alternatives -- and if you truly believe you can make the payments -- I'd have to say taking out a personal loan could work out well for some people. Connolly thinks so, too.
And Cunningham is for it, but only if the borrower is extremely disciplined and not trying to be too clever about how he or she is managing their debt. "Consumers need to remember that moving debt around is not paying debt off," says Cunningham. "So often people think they're being savvy money managers when, in fact, they're not better off this year than last."
Geoff Williams is a frequent contributor to WalletPop. He is also the co-author of the book Living Well with Bad Credit.
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Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
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Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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Biden Says Civilian Terror Trial Outcome Better than a Military <b>...</b>
FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
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Biden Says Civilian Terror Trial Outcome Better than a Military <b>...</b>
FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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Biden Says Civilian Terror Trial Outcome Better than a Military <b>...</b>
FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
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<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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Biden Says Civilian Terror Trial Outcome Better than a Military <b>...</b>
FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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Biden Says Civilian Terror Trial Outcome Better than a Military <b>...</b>
FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
Fox <b>News</b> Commentators Caught On Camera Mocking Sarah Palin's Show <b>...</b>
WASHINGTON -- The Fox News channel has been something of a safe haven for Sarah Palin, the type of outlet that provided the former Alaska Governor not only with a friendly audience but similarly kind questions.
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Roger Ailes, the chairman of Fox News, publicly apologized on Thursday for comparing NPR executives to Nazis.
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Great <b>News</b>: The Donald May Agree to be President « Hot Air
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I had had hopes for the Fox News Channel as an advocate of smaller government, hopes somewhat justified by evidence. But their treatment of Ron Paul has been off the charts. Chris Wallace has been absolutely vicious - at one point, ...
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FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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Biden Says Civilian Terror Trial Outcome Better than a Military <b>...</b>
FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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Biden Says Civilian Terror Trial Outcome Better than a Military <b>...</b>
FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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Biden Says Civilian Terror Trial Outcome Better than a Military <b>...</b>
FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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bench craft company rip off
Biden Says Civilian Terror Trial Outcome Better than a Military <b>...</b>
FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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Biden Says Civilian Terror Trial Outcome Better than a Military <b>...</b>
FOX News covers politics on America's Election Headquarters. FOX News political coverage on elections, races, foreign policy, candidates, and national security.
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
<b>News</b> Corp developing a tablet-exclusive publication
News Corp Logo Reuters is reporting that News Corp, the world's third-largest media conglomerate, has confirmed they will be releasing a news publication developed specifically for tablet computers like the iPad. "It's a tablet-only ...
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Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
Fox <b>News</b> Commentators Caught On Camera Mocking Sarah Palin's Show <b>...</b>
WASHINGTON -- The Fox News channel has been something of a safe haven for Sarah Palin, the type of outlet that provided the former Alaska Governor not only with a friendly audience but similarly kind questions.
Fox <b>News</b>' Roger Ailes Apologizes for Calling NPR Execs Nazis <b>...</b>
Roger Ailes, the chairman of Fox News, publicly apologized on Thursday for comparing NPR executives to Nazis.
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Great <b>News</b>: The Donald May Agree to be President « Hot Air
During a longer video with Fox News (video) The Donald goes into more detail about how the world has lost respect for America under the Obama administration, as well as the need for his type of “finesse” to be a truly effective ...
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You see, Rockefeller says he hungers for quality news and believes that the FCC should play a part in facilitating that end. He believes that without the extremes of Fox News and MSNBC, the American people would have more faith in their ...
Small Business <b>News</b>: SMB Blogging and Social Media Basics
Far from a fad, a new blogging and social media infrastructure has emerged and is still being built and becoming a part of the new hierarchy can be important to.
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