Should I get a consolidation loan, or pay it off myself??

I currently have bad credit, due to a large amount of maxed out credit cards..and I recently got a new job that pays enough so that I can start paying them back. Here lies my dilemma however. Right now I am making regular payments on my cards, (paying off highest interest rate first). Recently the bank brought to my attention that I can get a consolidation loan at a lower rate, if I transfer the balance and cancel my existing cards. However, I do like having some cards around just in case times get tight. Plus I heard that cancelling cards can hurt my credit.

How much does cancelling cards effect your credit score??

Which way would be the best route??

Should I get a consolidation loan, or pay it off myself??credit report

That is a tough one.

Personally I would take into consideration what the bank rate would be on a unsecured loan. I know that my bank unsecured loans run abou 9.75 interest rate. I am sure you are paying more than that a month on your cards.

Cancelling your cards I wouldn%26#039;t think hurt your record more than missing a payment.

Plus if you consolidate the cards your payment would be lower and where that extra 100 or 200 a month could go into a savings account when times get lean.

I would do it.

Should I get a consolidation loan, or pay it off myself??

loan

you could try a balance transfer that offers you 0% or a lower rate of interest than you are currently paying this may help with interest. consolidation is often expensive and there are complicated legislation.|||Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan%26lt;!--allows you to condense your monthly payments into a single, simple bill, while lowering your interest rates and helping you pay down your debts more quickly and easily. It is also an essential tool in avoiding the much more serious step of declaring bankruptcy.

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Unlike bankruptcy, in which debts are cancelled and your credit rating collapses completely, debt consolidation loans are essentially a type of refinancing, where several--%26gt;old loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you鈥檒l no longer have to deal with harassing phone calls and daily mail.