Im up to my neck in debt with my credit card, what i want to know is if i close my credit card account, do the monthly interest owing on that card stop..therfor allowing me to pay of the remainder without interest.. If i don't get this sorted soon,im in deep water....
2006-07-16 18:26:30 · 14 answers · asked by moneybags 1 in Business & Finance ➔ Credit
i WISH THAT WAS THE CASE, UR BEST BET IS TO CALL A DEPT CONSOLIDATION COMPANY, THERES A FEW DIFFERENT ONES OUT THERE.. THEY CAN HELP LOWER THAT INTREST BUT YOU HAVE TO STOP USING CREDIT AND THAT WILL BE VERY HARD.. GOOD LUCK TO YOU!
2006-07-16 18:30:55 · answer #1 · answered by Ryan R 3 · 0⤊ 1⤋
No, credit cards are nothing more than loans from a bank or credit agency.
The interest rate is much higher than ordinary loans (often illegally so - but nothing you can do).
Just like a loan, the interest accumulates until the Bank hands the debt over to a collection agency or the courts.
The process is automatic with no human involvement.
As I believe Banks and Credit Agencies are the spawn of the devil, my advice would be to get some credit advice from your local CAB (community advice bureau).
"Advice" 3 times in a sentence - must mean that it's important.
Try to remember what details you gave your bank, and do your best to change them if you cannot pay.
This happens to a lot of people after they get that easy first card. It's what the bank wants.
If you can take out a loan, with family or a Bank with better interest rates and fixed payments, do it. Then pay off the credit card.
Next time, have all the convenience of a credit card with none of the hassle - debit card.
2006-07-16 18:44:55 · answer #2 · answered by Simon D 5 · 0⤊ 0⤋
Think about it! If that was the case, everyone would just close their credit account when they reached the limit. How would the bank make any money? You should not have had a credit card in the first place. - The way to get out of the problem is by talking to your bank about it. banks are not evil. They will make a payment plan for you, so you can pay a monthy fixed amount until you are clear. There is an other way, pay it off with a lower interest loan. Although I doubt you would get one.
Always read the small print!
2006-07-16 18:39:00 · answer #3 · answered by Archyd 2 · 0⤊ 0⤋
you will be responsible for additional interest until the debt is paid even if you close the account. But you may be able to get the credit card company to lower the rate if you have been making payments on time. This site has some good info that may help
2006-07-18 03:52:25 · answer #4 · answered by oilman11977 5 · 0⤊ 0⤋
You have a few options:
1. Look in the mail for credit cards with a lower interest rate than what you have now. Transfer the balance off of the old and onto the new, and CLOSE the old account.
2. Look into getting a loan (with lower interest rate) to pay off credit card, then you pay back the loan
3. Call the credit card company and tell them you want to close acct. wait for them to ask wy and then tell them taht the rate is too high.I did this once, and it worked.
2006-07-16 18:35:22 · answer #5 · answered by mg 3 · 0⤊ 0⤋
Oh dear!!! I dont believe in credit cards,Im 33 and never owned one.The way I see it if you dont have the ready cash for what you want,you cant afford it.I get more of a buzz going in somewhere and paying cash.The shop keepers look at me weird.I got my computer cash 6 weeks ago,and a whole new tv/dvd/vcr package.In the united kingdom is the citizens advice beaureau.They help and phone up companies to make sure you pay the minimum amount on debt.Get sorted quick.cut it up and dont have another.sure I have to wait,and save and save.I can sleep at night.If you only have that credit card try to put as much as you can to getting rid of the debt.
2006-07-16 18:44:22 · answer #6 · answered by Anonymous · 0⤊ 0⤋
No, canceling the card does not cancel the interest. For starters, cut the card up so you cannot use it anymore. Then start paying off the card. You can make the minimum payment plus add a few dollars and tell the company that is for the balance. As you reduce the balance, the interest will come down.
2006-07-16 18:33:01 · answer #7 · answered by druid 7 · 0⤊ 0⤋
The answer is no, you still have to pay the interest on the card even if you cancel the account that is how they make there money. If you interest rate is very high then you will be paying off your card for a long time.I very rarely charge anything on my cards and if i do i make sure to pay it off right away, interest payments can be murder on people with high rates. You have 2 options you can file for chapter 11 bankruptcy or you can pay it off by making large payments each time you mail your bill out, paying the minimum you will never get it paid off.
2006-07-16 18:38:51 · answer #8 · answered by sincity usa 7 · 0⤊ 0⤋
oh man your already bought your head stone man!
I was like you and I lost my butt big time house car and almost my marrage too yes they will come after you to pay it! if you do not tell them your reassons why it is so hard for you to pay off they might give you a easier pament plan to pay it off. but it is a very bad bad picture (sitution to get into) you better do something now to pay some of it back and I mean now! they came for me in the middle of the night cause I did not pay when they wanted it. and if late it will double! so get out of debt and do not use the cards unless you can pa it back before the month is up if you have too. Just advice from a busted guy I am starting from $20 combined saving and checking in the bank after that I am homeless living with m mom and my wife
2006-07-16 18:38:20 · answer #9 · answered by Paul G 5 · 0⤊ 0⤋
Maybe this article will help.
How to Manage Your Credit Card Debt?
http://www.askaquery.com/Answers/qn1579.html
2006-07-19 07:00:07 · answer #10 · answered by jenny r 2 · 0⤊ 0⤋
No. the interest continues to accrue till it's paid off.
2006-07-16 18:32:00 · answer #11 · answered by Uberez 1 · 0⤊ 0⤋