Credit Card Debt. Suggestions?
Answer:
hi there, don't lose your health over it, the answer is knowledge,
people seem to find some help here, http://credit-cards.ebookorama.com.
and here http://finance.ebookorama.com
and here are 2 more sites on the topic
http://credit.ebookorama.com
http://credit-repair.ebookorama.com.
Ist of all stop using it.
Make at least your minimum payment on time. Then make any addtitional monies on it to get it down, every cent helps. Also if you do end up using. try paying for the item before your monthly statement to avoid interest charges.
its happened to us all at some point i'm sure
try debit relief counseling or find a credit card with a low rate if you carry over all the other cards to them i would try the first ! then go from there ! best wishes hey when you get them paid cut them up lol :) Ellen
If you get a loan and pay everything off- AND NOT GET ANOTHER CARD- would be the safe way out. Ask your local bank for information. Do it before it gets to be too big to handle.
This all depends on your personal circumstances. Can you borrow from a bank to cover all your debt at a lower rate of borrowing? Could you move all of your debt to a card with an introductory 0% rate for 12 months? Whatever your decision make sure you talk to all the companies involved. They should all take your problems on board and reduce the amount you repay per month. Good luck!
You need to start by evaluating how you got that far into un-secured debt in the first place.
Are you living way above your means? Spending money on going out, new cloths, fun stuff? Chanpagne on a beer budget?
A friend of mine did that until she racked up almost 15000 in CC debt. It took her keeping her butt at home for 3 years and spending the money she would have spent on going out -buying new cloths ect. on paying down the debt. You can calculate that you need to be paying more than the Minimum each month to ever get ahead. They say that it will take min. payments for over 30 years to pay off a balance that high.
Evaluate your financials - down to the dollar of what you make versus what you spend - and stop spending where you don't need to.
Worse comes to worse.. ask the credit card company for help. Sometimes they will work with you to get it paid off. - but then they won't allow you to use that card anymore.
Good luck to you, I understand how stressed I get over an 800 blanace on my card - I can not imagine having 12K in unsecured debt. I would never sleep.
Here is the way to do it.
1. Stop using credit cards. They should be for emergency usege only or to buy big ticket items and then pay them off when you get a statement.
2. Make a list of all of your credit cards, the interest rate, the total balance owed, and what your minimum monthly payments should be. Put that list in order by the interest rates.highest first.
3. The credit card with the highest rate is costing you the most. Pay the minimum balances on all of the other cards. Any additional money that you might have each month should go to the card with the highest interest rate. Pay more than the minimum. By not eating out or making additional cuts in your monthly expenses (beer, movies, etc.) you will be able to pay more toward your highest card. Pay that off. Once that is paid off, take all of the money that you were putting toward it and put it woward the card with the 2nd highest rate. Pay it off and then on to the next.
The trick is to avoid the temptation of using the cards you paid off and putting some additional balances.
I use debit cards and avoid using the credit card. Debit cards are great to ween you off of credit cards. They carry the same convenience without the same danger.
Good luck.
call a debt company that can consolidate all of your bills/debt into one low monthy payment and can sometimes get ur interest rates to drop
It seems like you have a good history with the credit card(s) company. I suggest you call them and ask them to work with you on a lower minimum payment. Considering your good history they may be able to work with you or provide alternate suggestions.
Well, you need to figure out a way to bring in additional income. But you already know this. I firmly believe that you should search eBay for a turnkey online business..start it.promote it.get yourself out of trouble. Then vow not to let them own you again.
My wife and I learned how to start our own web business at mycreditadvise.com and it really helped us.
Good Luck!
If you have a home with equity you can try to get a second mortgage, but only if you cut up your credit cards, close the accounts and take a vow never to charge again.
The money you get from the mortgage is only for debt reduction and your savings on monthly payments can start a savings plan.
If you don't have a home, you can still get a consolidation loan, but it will be more expensive, so you have to compare costs carefully to see if you will come out ahead. But you must not use your charge cards again.
Too many people do a second mortgage or consolidate their bills. They then keep charging and wind up in worse shape than before.
You can try debt renegotiation or credit counseling, but once your creditors learn of that, some of them at least will apply the universal default clause and jack your rates up dramatically, just making things worse.
Finally you come to the hard part: find a second job and/or try to get a raise at your current job; cut out all unnecessary spending like restaurant meals, cell phones, cable TV etc; sell assets including your car and take public transport for a while.
Your life will be tough for a while, but you only need do this until you get your expenses under control.
You can try this for extra money..its cost you nothing, just the matter of time..and how much free time you willing to do it
FREE PRE-REGISTRATION - 2x20 MATRIX - HOT PRODUCT EVERY COMPUTER USER NEEDS!
http://getyourposition.com/getpositioned.
In late Summer 2006, Vooka Technology will release the much anticipated Silver Box Solution. The Silver Box is an early glimpse at the robust next-generation, web-based software solution that supercharges the typical home or small office computer and creates a new, secure, and profitable internet experience. The internet has not been like this before!
INTRINSIC to the PRODUCT is an UNPARALLELED REFERRAL INCOME PROGRAM! That is why I am sending you this insiders, pre-launch heads up!
This new best of class technology is available through Vooka’s viral marketing program where the only requirement to qualify for substantial residual income is to just refer two friends or associates. That's it!
Vooka’s marketing program is designed for the average person to benefit from the coming worldwide Internet economy. Simple, powerful and based on a satisfied customer referring others. The income potential for the average person is substantial. There are many magnificent things within the Silver Box including a relatively easy part time income for the average person, or for the serious Internet marketer…… the potential to generate true financial independence!
If you can refer just two friends, you may be on your way to creating a one of a kind web-based business with the kind of income most people only dream about!
It's easy because most everyone with a computer needs and wants this kind of technology once they see it!
FREE REGISTRATION UNTIL THE INTERNATIONAL LAUNCH!
Position yourself now with Free Registration prior to the International Release. THE WORLD CAN BE YOUR MARKET.wherever the Internet is!
GetYourPosition.com and use the referrer ID# 59145 to sign up!
Here are some more facts.
* Vooka Technologies bought out IA Revolution and has greatly improved their product and added other essential products for computer users. I am personally looking forward to getting them on my computer to give the security and peace of mind I need.
* The matrix is a 2X20 and qualification is simple. sponsor 2 and qualify for 12 levels, 5 and qualify for 15 levels, 10 and qualify for all 20 levels.
* Matrix and payout on website is for basic product. More products and upgrades of existing products can generate further residual income.
* Company is stable and debt free and NOT a startup.
* levels. (No promises or guarantees of course)
* Click here:
http://getyourposition.com/getpositioned.
to Get Positioned Now and use ID# 59145 to sign up with!
All the best,
---> GetYourPosition.com ID# 59145
PS - After you position for free refer your friends and people you know, so the next person can join.
1st of all -- CUT THEM UP!! Stop using them immediately.
Then . the best way to see progress -- look at the interest rates, the balances, and start prioritizing your efforts that way.
For example: First, you decide to pay off the lowest balance card -- so pay minimum on the others, and a bigger payment on this one.
Do NOT answer any SCAMs or Triangle Schemes, etc -- I just saw one listed here. any __ x __ matrix is a Pyramid Scheme -- and that is a SCAM -- and an old one.
Then when this card is paid off -- put that same amount as additional payoff on card 2 on your list. Same process -- these bigger payments will accelerate the payoff of the card 2 -- then use all those payments towards buying down card 3.
I was in the same boat once, but my debt between credit cards and payments was closer to $100,000. My income was good but I was making minimum payments to all of the creditors and the interest was killing me. So I went to the bank and arranged a debt consolidation. It freed up so much money each month because I wasn't digging myself in any deeper. They gave me a visa card from only the one bank that I make sure is paid off each time I use it via internet banking. I also started a home business which earned enough to make the bank payment each month and I now have financial freedom.
Best move I ever made, and I learned a great deal along the way.
I found this for you: I hope it helps in managing your credit card debts effectively:
Credit Card Debt Management
http://www.debt-explained.com/category/c.
Many of us have experience with "Debt" at some point in our life. If you start thinking how to settle your Debt, you are on the right track. Think about the time when you will be free from debt. It is nice. Isn't it?
Some debt collection companies make annoying phone calls even at night and it would be nice to get rid of them. It is possible to get rid of them. Visit following site to learn about "Debt Guide".
http://www.makemoneyexpert.com/debtguide.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
Other Questions and Answers: