That question will spark many different images in your mind, perhaps a luxury vacation or a new hot tub. For those of us that are hanging tough in these hard times it might spark the image of a credit card bill with a zero balance. A few of you might be thinking that image is nowhere near as fun as the first two, and you would be correct. The next question you might ask yourself is this; would you rather have fun or peace of mind? Personally I would rather sleep better at night for months at a time, than for just seven nights. There are many reasons you might need a 5000 loan, saving yourself from paying hundreds of dollars in interest to a credit card company would be a good reason.

A lot of our stress comes from being in debt, if you could save money by securing a 5000 loan and save hundreds by doing so, would you do it? It is a well known fact that the interest rate on a credit card account can be up to quadruple the interest rate of a signature loan. The credit crunch has cost even the most credit wise a lot of money. Almost all of the major lenders have raised their interest rates on their revolving accounts, and passing that cost on to you, regardless of your payment history. I like to think of credit cards as a necessary evil, you almost have to have one to build your credit, but be wary of how you spend on a credit card at the same time, because it can be held against you. I know it seems like a lot of information, and can sometimes be confusing; but when you take a few minutes to find out how much money a credit card is really costing you, it is well worth it.

The first step would be to figure out if you really need a 5000 loan; if most of your debt is almost paid off it might not be cost effective. If you have decided that you do need a loan, and that debt consolidation would help you, the next step would be to gather your bills and pay off those with the highest interest rates. For instance if you have a zero interest auto loan, while paying that debt off would free up that money every month, it would not save you money, but in fact cost you more because of the loan fees and interest on the loan itself. It would be in your best interest to speak to a qualified and reputable credit counselor about your goals and the most cost effective way of achieving them.