i have 4 credit cards all totally 28,000....i want to start paying them off, i used the cards to complete and finish college which i have done, and now i want to start paying them off so i can start my process of purchasing a home and a reliable vehicle, my credit is kind of scarce so i wont get approved for a consolidation loan, is there any other route i can take to pay off these cards,i make good money, i just cannt get a loan for that high amount.
2006-08-13 20:37:38 · 6 answers · asked by DARNELL 1 in Business & Finance ➔ Credit
Call each of the credit card companies and ask if they will lower your rates...let them know you would be willing to consolodate your balances as well if this would help in getting a lower rate. Figure out how much you can pay monthly towards your credit card debt. Make the minimum payment on the 3 accounts with the lowest rates and use the balance of what you have budgeted to pay off the highest rate card. DO NOT MAKE ANY PAYMENTS LATE! Late payments cause fees and may cause your rate to go up. They also get reported to the credit bureaus and may cause problems when you go for the home/auto financing. Do not make unnecessary purchases with your cards, this only causes the debt to creep back up. After a few months ask the credit card companies again for a lower rate/consolodation offer. With time and diligence your debt will go down and your credit rating will go up.
2006-08-13 23:02:59 · answer #1 · answered by Sandie 6 · 0⤊ 0⤋
Darnell, I wrote an article a while back that shows how to do this on your own. This is how I reduced my interest rates and paid down my debt without any outside help. It is a way of manipulating the credit card companies so that you get the best interest rates and are able to reduce your debt faster.
It sounds like you may wish to try this first before talking with a financial counselor.
2006-08-14 09:41:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Despite popular belief, the worst thing you can do is cancel all of your credit cards. this will devastate your credit rating and history. Keep your oldest credit cards, and simply ask your banks to lower your interest rates. If you have been a good cardholder, this may happen. Start paying as much towards your debt as possible, and stop charging what you cannot pay for in cash.
2006-08-14 09:02:35 · answer #3 · answered by endsjustmeans 3 · 0⤊ 0⤋
You need to build up a good credit name, so i say if you are able to, pay more than your install ments are. For eg.
i have a r.c.s credit card. My installments are R290 amonth but i pay R500. Good credit name and more credit is a warded to me.
remember to pay before due date and not on due date. This will give a title of a good payer.
good luck to you
2006-08-14 03:52:08 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Read some tips and articles on credit and loans to help solve your problem
2006-08-14 03:39:49 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Here are some strategies to reduce your debt. Consolidate your loan and try to get a new loan.
Strategies to Reduce Debt Quickly
http://www.complete-debt-info.com/category/Strategies-to-Reduce-Debt-Quickly.html
Online Debt Consolidation
http://www.complete-debt-info.com/category/Online-Debt-Consolidation.html
2006-08-14 07:48:39 · answer #6 · answered by hen d 2 · 0⤊ 1⤋