Advice on CC debts

[donpisto 5,000+ posts]

My gf owed quite a bit, about a third of what you owed and she had like 4 or 5 credit cards. The advice I gave her was to start with one credit card and pay that off, while with the rest, pay the minimum blanance due. Once you have one knocked out, move onto the next. If you try doing all at once it will seem like you are going nowhere, but at least with knocking each credit out card out the way, you see the change and it makes you see the difference.

I think mrogowski's suggestion is also another option to consider. You may want to look into getting a job, if you don't have one already, but I'll assume that you do. Maybe find something else that pays more, or find a 2nd job.

Cut down on your expenses. Spend money only when necessary. Instead of buying lunch or dinner, make something. If you don't need to go out somewhere to drive, then don't. Maybe ride a bicycle for short distances. Don't spend money on any leisure items. It does get boring so treat yourself to a little something every now and then. Lastly, realize it will take quite a bit of time to pay off the debt.

What I recommend doing is creating an excel document and list your current balance for each credit card and the total amount you are in debt. For each month, document how much you paid off and keep updating this. Set a plan and an approximate date for when you think you may be able to finish paying off the debt and try to break that goal.

 

[Ali1 10+ year member]

it seems like your not the only victim with this issue:

Currently Active Users Viewing This Thread: 14 (12 members and 2 guests)

Ali1 , blackbonnie , blong131 , Louisiana_CRX , melnlovr911 , mk_ , RiPPiNiTuP7 , SilverSquared , speedfreak28 , WALKS UP , wr11shredz , wu501

we all are //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

 

[Ali1 10+ year member]

There is a reason behind going to 4 colleges....and 4 vo-techs it wasn't for extra education....those were the days....//content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

is this how you got your vehicles and your DDs //content.invisioncic.com/y282845/emoticons/greedy.gif.5a53e6246569d7ab79867170f3b06629.gif

 

[mannyb18b]

Do u own a house?

 

[mrogowski 5,000+ posts]

My gf owed quite a bit, about a third of what you owed and she had like 4 or 5 credit cards. The advice I gave her was to start with one credit card and pay that off, while with the rest, pay the minimum blanance due. Once you have one knocked out, move onto the next. If you try doing all at once it will seem like you are going nowhere, but at least with knocking each credit out card out the way, you see the change and it makes you see the difference.

The downside to this when you are busy paying off one card, you are still being charged full interest (and paying the full interest charges) on the others.

Banks are always willing to help folks out in consolidating. Get everything lumped in one place, pay much lower interest rate, and if you're smart, get the bank to automatically withdraw payments from your account. All you have to do is make sure the funds are in the account at the right time.

 

[alex3kicker 10+ year member]

Does a consolidation loan from a bank affect your credit score at all?

 

[mrogowski 5,000+ posts]

Does a consolidation loan from a bank affect your credit score at all?

I don't know the answer to this, but if a person is maxed out on a half dozen credit cards, credit score should be the least of one's worries.

Usually what happens with consolidation loans is you provide the bank all the info for your credit cards and they pay them off on your behalf. They also close the account since risk is now being transfered to them. This is good for you since you won't be able to rack them up again.

If your credit score is affected, it would probably be because your credit card accounts are being closed down. But at that point, who cares? You have gained control of your finances and are on the road to recovery.

 

[Louisiana_CRX 5,000+ posts]

i haven't a clue what my credit score is....

 

[Pottro 563 10+ year member]

actually closing the card with a zero balance is bad for your credit score. even if you pay it off you should keep the card and keep some alance on there if you are trying to build credit as well. depending on interest rate cc debt is usually like the NWO wolfpack FOR LIFE! shhwwweeeet!

 

[mrogowski 5,000+ posts]

Indeed, it probably does. But really, who cares? You will build your credit score by making on-time payments to your consolidation loan, and trust with your bank will build. If you keep one credit card (and keep it in check) and pay down your consolidation loan, you won't need any more credit score than that.

 

[donpisto 5,000+ posts]

The downside to this when you are busy paying off one card, you are still being charged full interest (and paying the full interest charges) on the others.
Banks are always willing to help folks out in consolidating. Get everything lumped in one place, pay much lower interest rate, and if you're smart, get the bank to automatically withdraw payments from your account. All you have to do is make sure the funds are in the account at the right time.

Agreed, just wanted to provide another option. Consolidating would be my way to go, but if it is not possible for whatever reason, another option must be considered. Interest really does kill though. I believe mine is around 18%. I haven't tried lowering it, but that's because I make sure I have the money before I use the credit card, unlike before.

 

[AllStar1500bd 5,000+ posts]

i just say phuck em...its unsecure credit they can't do nothing but give you more credit...i use to get credit cards all the time...but i haven't seen a new credit card in a year or so now...all my cards are past maxed...i just wad the bills up and trash them each month....

FAIL.

just take my advice...they can't hurt your credit...i just bought a brand new Civic with 2.9% Honda finacing....and haven't paid on a credit card in over a year...and i had 15 cards at one time....

FAIL.

Figure out how much extra over minimum payments you can afford each month. Say your total minimums are like $1k, but you can afford $1200 a month. Pay a little over minimums (like 10%) on each card is what I do, then apply as much extra as possible to the card with the highest interest rate. That card is costing you the most each month, so you want to focus on getting that balance down.
Once that card pays off, put ALL that extra toward the card with the next highest interest... don't think of it as, "Whoo-hoo! Got one card paid off, now I have an extra $200-300 a month!" Think of it as still having to pay the same $1200 a month, just that it's going between less balances... if you follow this method, the payoffs will snowball once you get the first one done.

Of course, getting another job is always an option. I do NOT advocate letting them go without paying them, as they can and will screw up your credit. How LACRX is making it by I don't know, but I'd be surprised if it doesn't catch up with him soon. Personally, I have alot more CC debt than you and many many times more total debt (it sounds like). I would like to take the easy way out and declare bankruptcy, etc., but I can't do that, morally. I made a commitment I would try to pay off the debt I've accumulated and I won't go back on my word just for the sake of convenience.

Creditboards.com is a good resource for dealing with debt and credit issues.

//content.invisioncic.com/y282845/emoticons/word.gif.64b12e39f936af3b4fff38a1c0bd0244.gif This man speaks good.

 

[lilmaniac2 5,000+ posts]

The downside to this when you are busy paying off one card, you are still being charged full interest (and paying the full interest charges) on the others.
Banks are always willing to help folks out in consolidating. Get everything lumped in one place, pay much lower interest rate, and if you're smart, get the bank to automatically withdraw payments from your account. All you have to do is make sure the funds are in the account at the right time.

truf

 

[pcolasfinest 10+ year member]

i didn't pay mine as i lost my job right after i used mine, i only owed 3g's but they finally said look we will take 1200, so i said deal.

 

[Louisiana_CRX 5,000+ posts]

i didn't pay mine as i lost my job right after i used mine, i only owed 3g's but they finally said look we will take 1200, so i said deal.

i get stuff in the mail every other day trying to get me to pay some amount less than the card....i'm just waiting 10 years till they go off my record....