Any Advice About Credit Card Debt?

**Bugaboo** · August 23, 2005, 10:55 AM

Re: Any Advice About Credit Card Debt?

Well, $4,000 isn't too bad honestly. Try for the loan at your personal bank first. If you've been with them awhile they may just go ahead and do it. If they don't I would advise that you take the card with the lowest balance/highest interest rate and start paying it off as much as you can. You can call the credit card companies and they will work you. It might blemish your credit but if you're running into a situation you can't manage it's better than having your stuff handed over to collections. And usually once it hits collections the credit card companies will no longer work with you. The sooner you take care of it the better! eta~I hope this works out for you. It sucks when you feel overwhelmed by this kind of thing.

**not2late** · August 23, 2005, 11:06 AM

Re: Any Advice About Credit Card Debt?

I would start paying them off first. Do it one by one if you have too. And I definitely wouldn't pay off one credit card with another---you'll only dig a really deep hole that way. So, you have to tighten your spending belt ASAP and use some of your money to pay off your debt.

Once you're paid up, limit yourself to 3 credit cards only. Credit card companies make their money from the interest you rack up on your credit line, so it's to their advantage to keep you in debt.

I have 3 credit cards: 1 Mastercard, 1 Visa card and 1 Discover card. I typically use check or cash to purchase food or to purchase anything under $20. Using check or cash is a reality check so I don't spend more than I can afford---it's too easy to do that with credit.

**IceQueenJ** · August 23, 2005, 12:30 PM

Re: Any Advice About Credit Card Debt?

$4000 is NOTHING. trust me.

I'm at least $35,000 in debt. and i'm 27. although it did all start like that.

whatever you do, do NOT get anymore credit cards. Cut up the cards, and keep only 1. Make payments at double whatever the minimum amount due is.

I know how you feel because I get sick just thinking about how much in debt I am.

Do you have a parent that will co-sign with you? that may be your best bet.

Also, create a budget for yourself, and stick with it!!! I'm in the process of doing this and it's hard, but it can work!!!

**MotherOfGizmo** · August 23, 2005, 12:42 PM

Re: Any Advice About Credit Card Debt?

Credit Cards are Evil!

**speedygt03** · August 23, 2005, 01:01 PM

Re: Any Advice About Credit Card Debt?

well i havent had any available balance on any of them for a long time so i dont use them. I had no interest for 2 years and my 2 years just hit and they went crazy!!! now i have 2 major ones that are the worst. one has a $1,000 limit and its now @ $1,400 and the minimum payment is $212 around there and the other one has a $500 limit and its now $875 with a $350 minimum payment. Its so high since there over there limit. Its gonna get really bad soon......I called a bank on my lunch break and they said they have a no interest line of credit...well...credit card that i can transfer all my other credit cards onto that and just pay, theres no minimum payment, no annual fees, notta. you would think there would be something. so *i* think thats a good idea it sounds like (dont know much about this stuff) but i just have to get approved for it.

No i dont have anyone to co-sign. Everyone in my family is really strict about that now b\c another member screwed my parents over and so that blew any chances.

I plan on closing all accounts when they get paid off but right now it really wouldnt matter b\c theres nothing left on them. and i've tried to call and work with them and they wont do jack for me. those people are the rudest creatures to ever walk this earth. everything was a one word answer, no , no , no, ever saw the capital one commercials??? LMAO. I used to love those until i called mine and thats exactly how they acted.......

**cmcole** · August 23, 2005, 01:58 PM

Re: Any Advice About Credit Card Debt?

Are there any debt counselling agencies listed in the government section of the phone book (I'm speaking from a Canadian point of view, so I don't know about US much)

Can you get a line of credit, rather than a loan (works out similar, but might be easier to get).

Cut up the evil things.

My daughter is going through a similar situation at present, and if she doesn't get a handle on it, she'll never be able to move out. I'm not certain I want her here into her 40's just because she can't handle credit cards.

Seriously, she went to a debt counselling/maintenance place. They made her cut up the cards in front of them, and they contact the credit card agencies to let them know that they are handling the payments from there. I don't know the whole story, but it is better than bankruptcy on your credit rating.

**carbsgottagotogetmefit** · August 23, 2005, 02:06 PM

Re: Any Advice About Credit Card Debt?

Stupid evil credit cards, Hubby and I had about 35,000 in credit card debt...we went through a debt management company because the companies refused to negotitate with us. My folks have excellent credit and let us transfer our debt on there card...(we still have to pay it) our minimum payment is 345.00 but we pay 600.00 a month We are down to 17,000 and will be paid off in 3 years... I would try calling each company and ask what they can do for you... maybe they will settle on an amount to get you caught up to your regular monthly payments...last resort would be to go to a consumer councel service...this can screw with your credit a bit but so can not paying for a lengthy amount of time. They will negoitate with each company and get you a lower interest rate and lower monthly payment.

**womanpraised** · August 23, 2005, 02:11 PM

Re: Any Advice About Credit Card Debt?

Think if you can get it, consolidate at the bank and pay it off PRONTO. For credit reasons, it makes sense to have a couple low interest cards that you put 20 or 30 dollars a month on, and then pay it right off, that builds credit. If bank wont go through, or the payment would still be too much for you, call Consumer credit counselling. I dont think they have a minimum debt?

Get it taken care of before you are in my shoes.. . your story is EXACTLY how mine started.

**Miss Phode** · August 23, 2005, 03:04 PM

Re: Any Advice About Credit Card Debt?

You've gotten a lot of advice here, I'm almost hesitant to jump in. Beware of credit counseling services. Sometimes they are good, but sometimes they ruin your credit. If your credit is perfect, you don't want to ruin it. On the cards that have the highest balances. Applying for a 0% card and transferring everything is OK, if you only do it once. It doesn't do wonders for your credit score, and doing this repeatedly can be damaging. If you transfer a $4000 balance to a new 0% card, and make payments of $500 per month, you'll have it paid off in 8 months. Now the tricky part is, can you get approved for a card with a $4000+ credit limit? If you can, I think that's your best bet. Cancel all of the other cards, EXCEPT for the one you've had a long standing relationship with. Once you're debt free, instead of charging and paying off every month, you should charge, let's say, $100 bucks a month, and pay off everything but 20 bucks. I know this sounds funny, but its a way to improve your credit score. I work closely with a lot of lenders, and I ask lots of questions. Carrying a small balance is actually better for your credit score than carrying no balance at all. I hope this helps.

**cleochatra** · August 23, 2005, 03:24 PM

Re: Any Advice About Credit Card Debt?

speedy--First of all, GOOD ON YOU for not getting yourself dug in deeper and for being fiscally responsible now. There are so many pople who are up poop creek without a paddle because they just kept spending.

I'd recommend you start by making minimum payments to all cards, but pay MORE than minimum on the cards with the highest interest rates first. Once you pay off the highest rate cards, then start hitting the lower-rate ones.

If you can get a couple of the higher-rate cards paid off first, you can then re-approach your bank and ask for the loan, paying off, or at least down, the debt on the remaining cards.

Good luck to you, and I'm proud of you for stepping up to the plate!

**Desertthorn** · August 23, 2005, 03:34 PM

Re: Any Advice About Credit Card Debt?

Go immediately to a credit counselor, but make sure its a charitable organization NOT a private for profit org. You can find them in the yellow pages under credit counselors. They are your best bet and will help you get out of debt quickly. Also your credit will not be ruined. Trust me, this is what I do.

**Perry** · August 23, 2005, 04:12 PM

Re: Any Advice About Credit Card Debt?

If you are paying 18 percent interest on your credit card balance that’s 18 percent a year that is not earning money for you. Pay off that balance and you have just given yourself an 18 percent return on your money. Guaranteed.

Scrimp and cut down on 'miscellaneous' expenses - today. Set a budget. Eliminate the Starbucks and brew your own. Forget about going out to movies or dinner. Make your own meals and rent DVD's. Go back to basic cable. Keep your cars maintained to reduce costly repairs. You're probably doing this already but look for the "not so obvious" places you're spending and put that extra money toward your card debt. Highest interest rate getting more of the amount as others have suggested.

Best of luck.

**Origam** · August 24, 2005, 12:32 AM

Re: Any Advice About Credit Card Debt?

$4,000 isn't bad. I agree with the others who have been saying pay off as much as you can and then only keep 2-3 cards! Paying more than the minimum amount is good advice to.. even if it's only $5 more. Remember whatever extra you pay over the minimum actually goes towards the actual balance and not the fees and finance charges! Perry's advice on budgeting is good... every little bit helps. Best of luck to you, you sound like you can do it.

Credit card companies are a pain in the butt to deal with.. collection agencies are much easier to deal with (I don't reccomend going that route though). I've got about $4,000 of debt left.. not including my car (roughly $8,000 left on it). I got overwhelmed with credit cards about 7 years ago. I had just gotten out of a crappy marriage and everyone was willing to give me a credit card.. I had about 8 of them at one time! I ran them up to their limit and then changed jobs and started making less and just stopped paying what I couldn't afford and well.. they all went to collections and my credit is pretty crappy. I called on of the collection agencies and the guy I talked to was as nice as could be and has been helping me (a collection agency not a credit counselour.. kind of funny) with advice. I've been working on paying off my debts.. I pay one thing at a time and have gone from around $10,000 in debt to around $4,000. It's hard.. it's hard to not buy all the things I want or go out all the time, but I keep telling myself that it's for the best and eventually when I get it all paid off I'll be able to breathe again.

**speedygt03** · August 24, 2005, 05:35 AM

Re: Any Advice About Credit Card Debt?

I went to a credit counseling place, its a little one that runs through the county on donations. Everything seems fine about it but the only thing Im worried about is, when I start into the program they close all of my accounts just to assure that I dont use them while trying to pay them off, which is good, but I cannot use ANY credit or apply for any until im out of the program, which will be 3 years. I understand they just dont want you to get farther in the whole thats why they do this. But I dont have a savings account and we live paycheck to paycheck, what happens if something breaks? I cant even finance if something was to happen to my car. I dont think it would its a 2001, but its possible. That will be my last resort b\c I cant go without not being able to apply for anything in case of emergency.

That's why im hoping and praying that this bank card goes through. If not Im not sure what the next step will be. I always told my parents that I didnt have any credit cards b\c i didnt want them to be disappointed in me, until a couple days ago I told them AND asked them to co-sign, now they wont speak to me. She said "when we were growing up, if we didnt have the money....we didnt buy it, whats so hard to understand about that" well...nothing. but when I DONT have the money and I need something, thats when I used them. They dont understand that the rest of the world isnt loaded like them. Oy yoy.

I'm praying this goes through.....

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Any Advice About Credit Card Debt?

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