How to get out of credit card debt if you have to rely on them to make ends meet every month?

Question

Say you earn 1000 and have to pay 1050 for your credit card debt. You have to rely on your credit cards ( again ) for those extra 50 and for your monthly expenses.
What should a person with this problem do?
Would it be ok to take a loan?

Finance gurus like David Bach say to pay the highest rate card first, but what should you do if you can't?

Thanks ¡¡¡¡

Answer 1

1. You have to stop using credit cards. Sell the car and use public transportation. Discontinue cable television. Get one local-only telephone at a minimum price. Buy only dried vegetables and whole grains that have to be boiled to make cereal and stews. Do all your own cooking with no convenience foods. Stop buying new clothes. Microwave "oat bran" at work for lunch instead of a tasty snack at a fashionable bistro. Don't buy magazines. Turn off the airconditioner in the summer and turn down the thermostat to 64 in the winter to save on fuel bills. Only use the cheapest cosmetics from Wal-Mart.

Do all these things so that your expenses are less than your bills. Now, pay off the highest interest rates first.

Don't "improve" your "lifestyle" until you have paid off everything. My advice is "hard" but necessary because you have dug a deep hole here. You need to live a shockingly simple, frugal life yet go to work every day and not complain about it until you are out of debt. Cut you expenses. Cut, cut, cut.

Answer 2

Begin by calling each card company. Tell them you have an offer from another company for a no interest for one year on balance transfer fees and that if they cannot lower your interest that you are going to close your account and transfer the balance. They will usually drop your interest. When you get off the phone with them, CUT ALL OF YOUR CREDIT CARDS UP. Next make whats called a debt snowball. This means start with the card that has the lowest balance first. Attack that balance with every extra dime you have, even if you have to sell some things and do without. When you get that card paid off, take all of the money you have been using for that payment and apply it to the next lowest balance. Continue doing this until they are all paid off. I know this goes against the advice most people give of paying off the highest interest rate first, but there is a reason behind it. First the interest you will save is really not that much if you get the cards paid off within a couple of years. Where the interest really gets you is when you are paying it for many years. More importantly when you get that first card with the lowest balance paid off, you actually can see your progress and it causes you to become more motivated to continue on the path to having the others paid off. Hope this helps.

Answer 3

You need to look at your expenses first. There are mandatory items (e.g., rent, insurance) and discretionary items such as movies etc.

Take your revenue (wages) less your mandatory items and you should get a number. Try to utilize all of that for paying off credit cards.

Yes, you should pay down higher interest cards first. The logic is simple: you are paying more per borrowed dollar than with lower interest cards.

If you are getting to the point where you absolutely, positively cannot pay your debt off then call your credit card companies and see if they can't work something out for you. I would watch out though, sometimes payment plans can end up as marks on your credit report.

Good luck!

Answer 4

Earn more money. The Army can make you debt free in 3 years, with the chance for substantial savings...Something to consider.

Never get a CITI bank card. They block it every 48 hours to prevent fraud, then you must call them to get it reinstated, or wait until they call you at 8 am to ask you the previous 5 purchases that may have been made by yourself or your spouse. If you do not know the answers, card is shut off. Just as they discriminate against military personnel that must move often and will not allow them an active card unless they have proof of residence for the past year.

Answer 5

the precedence with charge playing cards is that the interest costs pile up very instantly. If attainable, you need to get a sparkling card it incredibly is providing an introductory particular interest price. move all the balances to this. If this isn't attainable, the perfect difficulty to do is to pay off the cardboard with the utmost interest price first. Pay the minimum on the different 2 or maybe with you've left off the most expensive. convinced, it really is going to look like the interest is construct up on the others despite the indisputable fact that it really is nonetheless lower than you'd be paying on the substantial card. do no longer use the recent card (in case you get one) because they gained't have a particular interest price and the mastercard employer will make you pay off the former (interest loose) debt first so that you gained't incredibly have saved your self something.

Answer 6

You must situate additional income for yourself. Or get a consolidation loan and be certain you set the monthly payments well below your income and budgetary requirements.

These are the only two ways to correct the problem.

Be determined. You can and will succeed. The nature of your question shows that you have the acuity required to succeed. I would say, good luck, but you don't need luck. Just knowledge which you are out to find already.

You will succeed.

Answer 7

reduce your expenses to live within your means, ask for a term loan from credit card company n pay off their outstanding dues as the interest on short term loan is less then half of what the credit card company charges- if you continue to live of credit cards then you are paying almost 36% extra to the every year to service your credit needs- best advice cut the card and throw it away.

Answer 8

the only way to Reduce Credit Card Debt is by consolidating your bills into a monthly payment, this is called debt consolidation.
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is an online ebook :

you can read it for free at:

http://umgarticles.atspace.com/debt-consolidation.htm

Answer 9

Cut back on items you REALLY don't need. Get a part time job or get a new job that pays more.