Finding the best rate on personal debt consolidation loan (pay, transfer, credit)

[Badfish740]

My fiancee and I are getting married in July and we're still in the process of combining our finances. Right now all of our credit cards are separate, but we've both incurred expenses that mostly revolve around our making improvements to our new home, paying for our wedding, etc... When all is said and done the balances will be around $25-30K. We're not overly concerned with this as our incomes are both steadily rising, which we realize is a blessing in this economy. However, once we're married we'd like to jointly apply for a personal debt consolidation loan in order to clear all of the cards, hopefully get a better rate, and have one easy payment. The interest rates we have on the cards are as follows:

8.99% (not much on that one)
4.11%
5.99%
6.99%

None of the cards has a high enough credit limit to allow us to transfer all of the balances to one. My credit union offers a personal debt consolidation loan at 8.5% for three years with a $35K limit. This would work, would be quite manageable, and would make us virtually debt free in three years. I say debt free because I still have a loan on my truck (her car is paid off) that I owe about $12K on. The loan rate is 5.25%, so ideally I'd like to find the following:

Unsecured personal debt consolidation loan for around $35K
5.25% or less
3-4 year term

Would I be better off going to a larger bank or does my credit union have the best deal?

[tabbcat]

Hmm... I don't suppose you're military? My husband just qualified for a 2.99% $25,000 loan for newly commissioned officers.

[texdav]

I really doubt your going to get that rate unless you also have a very high savings account at the instituiton you banking at. Unsecured loans are entirely different from secured and getting higher everyday because they require more income and other documantion not so much based on future earnings.Looks like with that credit card rates you might not save at all if as you say the 8.55 is low. Keep it that way and pay it off as soon as possible.Then keep the payments on time and high on the rest.

[chet everett]

OP:

You are lucky to have the low rate CCs you have. Do not move the debt to some "consolidation loan" unless you ABSOLUTELY must! Just get the online calculators or even an excel formula that shows how the CC are paid off. Your "blended rate" even with the 8.99 is far below ANY unsecured loan available to the general public! Basically as long as the cards you have do not raise your rates (and if you pay ON TIME by setting up system to MAIL EARLY or make all the payments electronically most lenders will try and keep rates low to encourage you run up larger balances) you are in good shape with regards to rates. Obviously THAT is exactly the trap they want you to fall into... The LENGTH of payback on MANY revolving CC is DECADES, do not fall into this trap. Pay down AS MUCH AS YOU AFFORD AS QUICKLY AS YOU CAN, even if that means cutting WAY BACK on your life style. Scrutinize EVERY expense!

Unsecured loans have VERY HIGH rates of default, if you think about it the reason is obvious -- a borrower has only HONESTY (and legal ramifcations) to compell them to pay.

Even with a CC if the lender maxes out your credit, after a payment they still allow you ring up new debt. A bit of "carrot & stick".

SO -- work to pay off the existing CCs. Do not dig a deeper hole by taking out new loans or even USING the CCs unless you can pay them off!

Good Luck!