2006-09-10 16:59:28 · 18 answers · asked by themysterious 3 in Business & Finance ➔ Credit
I feel you, first like the others said stop charging, then start paying more than the minimum on the one you can pay off the fastest. That'll help you build momentum. You really just have to suck it up for a while.
Good luck!
2006-09-10 17:07:49 · answer #1 · answered by Heather M 2 · 0⤊ 0⤋
First of all, check your interest rate. They may charge you 20-40% interest, particularly if you have missed just one payment. If your interest rate is higher than 10-15%, you should transfer the balance to a lower interest account. There is a 3% one time charge for this, but it may be waived by certain promotional offers. If that's not feasible, call the company and discuss your interest rate. Say that you do not want to use the card anymore unless you get a better rate.
Then, of course, you will need to modify your use of the cards so your balance goes down every month. This is particularly tough, but needs to be done, unless you know that you will make more money very shortly.
You can also see if you can secure a home equity loan, which are usually much lower interest rate.
2006-09-10 17:09:51 · answer #2 · answered by Ivan 5 · 0⤊ 0⤋
Do not go through debt companies. Here is some advice to to this on your own.
First thing of course would be to cut up the credit cards and make a commitment to never charge again. Then follow the following plan.
Make a list all your debts by amount you owe from smallest to largest. Then begin by paying the "most" amount you can each month to the smallest debt with the idea of paying it off quick. Then, only the other larger debts on your list. Continue doing this every month until you have the smallest one paid off. Everytime you pay off a debt, call the company and tell them to close the account ... that you paid off the debt and that you do not want to leave the account open. They will try to talk you into leaving the account open. Don't do this as it is too convenient and you will be tempted and will sink into debt again. You then start paying the most you can on the next smallest debt in line and go on from there until you have each paid off. Every time you get any extra money, whether it be $5, $10 or more, apply it against your debt even if you have already sent in a payment. You can send in payments more than once a month. Don't go out to eat. It's "beans and rice, rice and beans" as Dave Ramsey always says (which just means cheap meals). Also do things to make money like garage sales, sell on eBay, get a second job, anything to help you get money to apply toward that debt. It's not about obtaining the best credit score, it's about eliminating the debt.
You can get more help on how to accomplish this by reading and listening to Dave Ramsey. He has a talk show which you can hear on line through his archives, or live by entering your zip code and find out what time of day his show airs. Plus there is a lot of reading material on his site to get you started. In addition, he has forums from his site to get help and advice from other people who are in debt. Dave has been there (with debt) and knows what it is like and is now helping people to get out of it. There are people that have followed this method with over $100,000 in debt and have gotten it paid off without going through bankruptcy and without getting some debt help company to do it for them. Have an open mind and be willing to sacrifice in order to live a stress free life with no debt.
Dave's website link is below.
I hope this information helps you and you get the relief you need.
http://www.daveramsey.com
2006-09-10 17:43:23 · answer #3 · answered by son-shine 4 · 0⤊ 0⤋
1. Stop using your credit card.
2. Get another card with an introductory 0% APR, and no or limited balance transfer fees.
3. Pay off as much as you can.
4. Repeat 2 and 3 just before the introductory rate expires.
2006-09-10 17:09:24 · answer #4 · answered by novangelis 7 · 0⤊ 0⤋
First, cut them up. Just using it when you need some gas or food here and there will mean they never get paid off.
Second, if you are over the limit on any of them and thus are getting horendous fees that you cant afford or high payments becuase of the overlimit, CALL THEM. You'd be surprised how nice and willing to work with you they are! Tell them exactly how much you can pay....and see if they can waive/reverse some of their penalties.
Third, pay the highest interst cards first, OR if you have any very small cards, pay those completley off and then focus on the next ones.
Its tough, but its well worth it!
2015-03-21 15:34:40 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Try to consolidate all of your cards into a lower fixed rate Closed end laon. Meaning not another credit card. Make sure all your cards are paid off before you close them because this can hurt your credit. Good Luck.
2006-09-10 17:06:16 · answer #6 · answered by Lady G 3 · 0⤊ 0⤋
Been there. Doing the time myself. Just cut the things up and pay it all off as soon as possible. Get a second job if you can My wife and I make about $70,000 a year and I can't afford to go to a movie some months because I am paying off the cards. Just pay it off as soon as possible.
2006-09-10 17:08:42 · answer #7 · answered by Sugarface 3 · 0⤊ 0⤋
Get rid of the cards. Start paying off the smallest balance first. Once that's paid, go on to the next one, then the next, etc.
You'll get there before you know it!
2006-09-10 17:04:30 · answer #8 · answered by AngiesHusband 5 · 0⤊ 0⤋
Stop spending and use the extra cash to pay off the debt.
2006-09-11 05:12:46 · answer #9 · answered by Steve R 6 · 0⤊ 0⤋
Dave Ramsey is a good source if you are ready to deal with it on your own. As long as you have financial strength, his methods will work.
If you are falling behind, I recommend speaking with a financial counselor in your local area. Here is a driectory of local agencies by state:
2006-09-10 18:04:14 · answer #10 · answered by Anonymous · 0⤊ 0⤋