I am 19, and honestly am in credit card debt, my questions are below.?
Answers:
Don't wait to repair your credit, paying 50.00 per month will take forever to pay them off. Most if not all will also charge you late fees which in return will eat up all your payment if you only make the small one. Find someway to make the higher payment, and hopefully you've learned a big lesson from this.
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I would pay as much as possible now. Never make the mistake of thinking there will be time to fix things. You never know what is going to happen for you in the future. I made that same mistake and I'm now 31 and finally I have decent credit. I have spend years trying to fix it. Pay what you can now. Get rid of it ASAP!
Pay them whatever you can each month, and when I say whatever you can I mean anything else other then what you need to spend on food and living.
At 19 I would assume you live with your parents still? You should be able to pay off more then just 50 a month, if you have a job as you should right now then either ask to get more hours at work or get a second job.
But pay it off as soon as possible. Don't eat out, don't buy things like video games or other things like that. Get rid of your internet and try selling a few things maybe on ebay before you get rid of your internet. Get rid of your cell phone as I"m sure you have one even if you have to pay a 100 fee to get rid of it early then do so and start using next month's cell phone bill money to pay off the credit cards.
As to repairing your credit once you pay off your cards then keep them, but don't use them for more then a pack of gum every two months. The more credit you have that isn't being used the better your credit will get the faster.
Take your cards and give them to someone you trust like your mother or father who will only let you use them one every other month to buy something very small.
Most people who have good credit will use them like a debit card they buy only what they were going to buy in the first place then they pay it off right away if you trust your self to do this then this is the way to go but I'm going to assume by your credit history this isn't for you just yet.
In a way you've answered your own question, you can only pay what you can afford to pay.
If you can't afford more then you can't pay more.whether you or the credit card company wants you to or not.
You've done the right thing to start with, you've told them you have a problem.
Common sense applies here, they will rather you pay them back slowly than not at all...so they normally accept the lower, extended period payments.
At the rate you suggest you're looking at what...18 months to pay it off?
Now that isn't too bad.as long of course that you can manage to keep it up and don't need the money for anything else in that time.
For that reason it's in your interest to try and pay it off sooner.because then your money become available to you for other purposes if needed.
The other obvious reason to pay it off as quickly as possible is that you will be charged interest on the outstanding balance every month.
Credit card suppliers like people to do that, it's the way they make the most money.
The longer it takes tho more interest you will pay..so the $1800 you owe is not what you will end up actually paying back.
In practice, you can only pay what you can manage to afford, but always try and add any extra cash you might find you've managed to save one month and pay that as well.
I know it's a pain not being able to spend it but it will be better value for you in the long run.
Maybe try and get a second income just for a short time...just till you pay it off.
As for your credit rating, accept that it's damaged for now.however, it will be worse if you fail to pay the debt off.
At the moment you are struggling, not failing.
If you pay it off slowly, you will have least paid it off.and not defaulted.
The only repair is time.once a few years have gone by with everything okay and you paying on time they forget all about it.
I agree with what Yomi said. And I do believe that you have taken some positive steps by recognizing that this is a problem and contacting the company to work with them.
I have gotten myself into a bind or two in the past and found the easiest (not necessarily the smartest according to many) was to pay the minimum on the larger balance cards and as much as I could on the card with the lowest balance. After it is paid off, this frees up more money to then pay towards the next card.
As for repairing your credit, the credit companies work like this:
Anything bad stays on for 7 years (except bankruptcy--that's 10 years) and anything good stays on for 10 years. So if you make those payment arrangements like you have agreed to, then Chase will report that you have "Paid As Agreed".
So, just by facing the problem head on instead of ignoring it, and if you keep these arrangements, you will have repaired your own credit.
You can also check your credit once a year on all 3 credit bureaus for free through www.annualcreditreport.com (it costs extra if you want to check your score). This is also a good thing to do just in case to check for any errors that may have been posted to your report.
Good luck...it is a hard lesson to learn, but it sounds like you have a good start on getting things under control!
You can say that the card was stolen and then mailed back the same day.
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Of course pay what you can but I think you should learn a bit more about credit repair. May I suggest a site that can help you http://www.thecreditrepairmanual.com...
Best of luck,
Hi,
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