How to dig back out of credit card debt without ruining credit?
Answers:
Find a credit card that you can have for 12 months 0% interest and transfer your credit card balances to that card. Each month put away a portion into a savings account to earn some interest. Just make sure to have enough money in there to cover the balance after the 12 months is up. And quite buying things unless they are a necessity. Hopefully your credit has been ruined by this but paying off that 0% credit card may help to bring it up!
Try consolidating all the cards onto one card where you can get a reduced interest rate (sometimes 0% for a year) & then cut those cards up! You need to get this under control or its just going to get worse. Try to pay more than the minimum each month so you can knock it down. It will take some discipline but if you stick to a budget and are dedicated to paying down your debt , you will see the light at the end of the tunnel eventually. Also, not sure what you spent all that money on, but if you go through your closets and sell some items to consignment - you can use that money to apply it to the debt.
Good Luck
Go to your local public library, and check out Mary Hunt's book Debt-Proof Living. (Notice I did not suggest buying it.) If your library does not have it, ask them to order it. Libraries welcome suggestions for titles.
Mary Hunt has the best plan for regaining control of your finances I have ever seen.
You're not as in debt as you think you are. The very first thing I would do it consolidate your debt. Then, I would get rid of the all but one card (the one that you consolidated into). Get a second job just to pay off the debt and cut out every unnecessary thing-----> Digital Cable (get a basic package if you must have it, High Speed Internet (get AOL), long distance phone service (if you have cell phone, you don't need this on your landline), don't eat out as much, don' t go to the movies as much. The more discipline you have, the quicker you can get out of debt. Lastly, pay more than the minimum due each month for everything (credit cards, car payment, car insurance), you will come out ahead.
I know it's hard because I have been there and I got debt free.I can't tell you who to use, that's up to you, but I used Care One Credit Counsel ling service. I was 30K in debt with a terrible credit score. Five years later I was out of debt with a credit score near 800. When you get free and clear remember to tear up all credit card apps. (They will send you tons of them) and use your debit card instead. If you can't afford it right now, you don't need it right now. Good Luck!
Call the credit card companies, and let them know what is goig on. Maybe they will work with you, maybe they wont. At least you tried. Then, cut up the cards.
Start what is called a debt snowball. Pay the minimum amout due on the highest( amount owed) two cards. Pay as much as you can on the lowest card. Once it is paid off, do the same thing on the next lowest card.
Intrest will build up, so you need to pay it off asap. Get a second job delivering papers, pizza. Have a garage sell. Stop spending as much, and find ways to make exta money. Put everything you can towards the debt snowball.
GOOD LUCK!
Start paying your bills..
Many people face a financial crisis some time in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or overspending, it can seem overwhelming. But often, it can be overcome. Your financial situation does not have to go from bad to worse.
If you or someone you know is in financial hot water, consider these options: realistic budgeting, credit counseling from a reputable organization, debt consolidation, or bankruptcy. Debt negotiation is yet another option. How do you know which will work best for you? It depends on your level of debt, your level of discipline, and your prospects for the future.
Consolidation is the best solution available to the credit cardholders to improve their future credit. People go for debt consolidation for many reasons: prolonging the loan period from 5 - 15 years and reducing the interest rate. Consolidation allows you to go for a loan with lower interest rate than the one you are currently paying. Besides it simplifies the loan repayment as you are paying only one lender in place of various payments to different lenders.
Before consolidating your credit card debts, it is important to carry out thorough investigation to determine its suitability for your condition. Many credit card companies and banks provide debt consolidation services to their customers. To start the process, it is important to scrutinize your debt properly.
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