But the total loan is $14000. And apr is high, Any sugestion what should i do, Every month i send them a payment but it is not going any where. Is it a to big of a loan to pay off?
2006-10-13 08:11:55 · 10 answers · asked by Alisha 2 in Business & Finance ➔ Credit
Call them on the phone and ask if you can get a lower APR. If not you may want to see about getting a new credit card with 0%. We got one with a $5,000 limit at 0% for the life of our transfer. Of course just one credit card won't work.
Also, call all of your other credit cards and ask for lower interest rates. The worst they can say is no. If you get lower rates you can then redistribute the money you would have been paying to this loan as well.
Lastly, see about refinancing the loan with someone else at a lower rate. We asked one bank to lower an APR that's at 24% and they declined. I was offered a credit balance transfer at 2.2% and I took them up, transferred the entire credit card and left it at zero. Don't close your zero balance cards because it can have a negative effect on your credit score.
2006-10-13 08:21:24 · answer #1 · answered by Cambion Chadeauwaulker 4 · 0⤊ 0⤋
That is a lot of money to put on a credit card... Here is the math to figure out what it is costing you.
Total balance times the APR = (what you pay annually as a fee to continue to owe money). Divide that number by 12 and it is the finance charge for the month... If you are paying $300 per month and you are aqguiring $300 per month in interest - you will owe the money forever...
You can do 3 things...
1) Send much more money than what you are being charged in finance charges each month
2) contact the credit card company and try to have the APR lowered
3) If they wont budge, contact a reputable 501c3 non-profit debt management company or CCCS and they will help you get on a Debt Management Plan... the key here is to break the cycle of borrow and owe...
fyi $14,000 at 25% interest is $291 a month in finance charges, if you only send $300 a month - you will be paying the balance for over 50 years (yikes)
2006-10-13 15:49:53 · answer #2 · answered by E-Rock 3 · 1⤊ 0⤋
For your credit score to remain low, it is important to have the balances less than half. Also the number of lines of credit that are associated with you should be 2 - 4 (and kept in good standing).
I think you should consider consolidating your balances to one monthly bill at a lower rate...less than 9.99% apr FIXED. Go to 2 or 3 banks and inquire about their consolidation programs. Depending on your credit score some banks should give you competitive rates... Your credit is important...
OR get a credit card that has a very high credit limit and medium to low FIXED APR... transfer balances to the card and be timely... the point is to have one monthly payment at a lower rate... then you can continue paying the same amount you do now, and pay off the balance in a shorter period of time
2006-10-13 16:25:49 · answer #3 · answered by Duuuude no waaaay! 2 · 0⤊ 0⤋
Get a loan with a smaller interest rate and pay them off.Cut up 3 cards use the one only in case of an emergence,And try to pay it off at the end of the month.Don't charge with it until the balance is 00 each time.On your new loan pay over the mount due.It will pay it off faster.
2006-10-13 15:26:11 · answer #4 · answered by tennesseemom 2 · 0⤊ 0⤋
Pay the minimums on each card on time.
Whatever extra you have, pay towards the highest rate card (balance is irrelevant!)
Call each card and ask for a review to see if they can lower your rate. Call the highest first and tell them you have other cards that are lower (you're telling the truth!). They may lower it some!
As the cards are paid off, destroy them so they can not be used again (but keep them open for now).
When they are paid, have a plan to manage your use of credit - highly recommend they site below because they are not looking to sell you anything.
Hope this helps!
2006-10-13 16:25:56 · answer #5 · answered by kcincon 3 · 0⤊ 0⤋
Find a new credit card company that offers loan consolidation. Usually they offer consolidation with very low interest rate for one year. You pay back the total balance in the year and start fresh. Good luck.
2006-10-13 15:30:33 · answer #6 · answered by mimi 4 · 0⤊ 1⤋
call a loan company and ask for a consolidation loan, pay off all the cards, CUT THEM UP and pay off the one loan
2006-10-13 15:22:20 · answer #7 · answered by Anonymous · 0⤊ 0⤋
stop using your credit card and send them more than your minimum payment and NEVER max out on a credit card the problems will go down hill from there.
2006-10-13 15:16:49 · answer #8 · answered by mom_in_love 4 · 0⤊ 1⤋
You are never going to reduce your debt if you pay $100.00 and you charge $101.00
I suggest you to pay more and charge less.
2006-10-13 21:23:52 · answer #9 · answered by Anonymous · 0⤊ 1⤋
This site has many reports that will most likely answer most of your questions -- www.paynotaxesforlife.com
2006-10-13 15:26:56 · answer #10 · answered by Pay No Taxes For Life 2 · 0⤊ 1⤋