June 24, 2009 • June Walbert
Q: I am recently married and wondering if getting a debt consolidation loan for my debts that I have accrued would be a good Idea. I was thinking so because I am getting deployed next month and my debt is only about 2,000 dollars.
-James, Kearney, Neb.
A: If you’ve read my column before, you’ve seen that I try to put a positive financial spin on deployment. In my view, the additional allowances, tax-free pay and reduced expenses often afford us an opportunity to eliminate debt, build savings, and start or grow your investment program. Do a “deployment budget” and figure out how quick you can eliminate that $2,000 debt. That should be your first priority! My guess is that it’s not worth the hassle to consolidate…just knock it out. Not only is it a hassle, but you’d be applying for more credit. That application will be noted on your credit report and typically represents a short term ding on your score. You should never apply for more credit than you really need. For more info, check out myfico.com and more of my columns under the “credit” heading. And congratulations and best wishes on your new marriage!
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June Walbert is a CERTIFIED FINANCIAL PLANNER TM practitioner with USAA Financial Planning Services, one of the USAA family of companies.
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