what is the best wat to get rid of cedit card debt?

Question

with out filling bankrupt and taking care of the problem legit

Answer 1

I've been there and back, so I can offer a few suggestions. You must be committed to your goal. You know you have to cut up the cards first and promise yourself and maybe someone else, that you will not use any credit. If you don't have the money to buy something, you don't need it. Try to pay off your higher interest accounts first by paying as much extra as you can. Continue paying the minimum on the other accounts. Try to pay on time to avoid those late fees which can add up. Also see if there are any monthly bills you have that you can do without for a time, like cell phone or cable. This will free up some cash for you to use towards paying off debt. You may need to get a little part time second job to reach your goal. Use the money from this job to pay off those bills. Also, when you get money from tax returns use this to pay off bills. Each time you pay off an account, call and close it. The more you pay off the more cash on hand you will have, down the road to do the things that you need to do. Once you reach your goal try to work on a little emergency savings account. Again, set a goal, like a thousand dollars or so. Hope you reach your goal to pay off that debt. Don't give up, keep trying.

Answer 2

First don't accumulate anymore debt while trying to pay things off. If necessary, cut up or shred those evil monster plastic cards. Make a budget and stick to it. Make sure you still save a little. Even $5 every payday is something and it adds up. Call your creditors and let them know what you're trying to do. Some of them will lower your interest rate or even apply no interest. Set up direct payments with them via direct checking account debit or online banking for a certain day. Ask if you can send additional payments in the same month that can go directly to the principal. Focus on paying off the highest card first and work your way down in amount to the least until it's all paid off. Send the most you can to the highest balance. Send at least twice the minimum amount (plus the interest added on the statement if possible) on the rest of your balances. You have to be committed in order for it to work.

Answer 3

Quit spending money, cut up the cards, pay them off and use "lay-away" instead of borrowing against your income. Keep a spending diary of EVERY CENT you spend for a month, and then make a budget and stick to it. Start a savings account an keep adding to it until you have at least SIX months' bills at your current level put aside. Then, put your bill money into envelopes marked "rent," "utilities," "food," "car payment," etc. Get rid of that upside-down note on your car, even if you have to sell it. If your payoff is more than 15% more than the vehicle's private-party resale, you're in too deep on the note. If the car's resale is more than your debt, keep the car, but refinance for lower payments. Use that difference to knock down those credit card bills. Also, find a local agency that is teaching the "Financial Peace University" course, listen to Dave Ramsey or look him up at www.daveramsey.com and get rid of your debt. Pay CASH for everything. Don't use checks. USE CASH...It hurts more to separate with the actual bills, so you'll become more frugal with it Also, get a second job. Deliver pizzas, drive a taxi if you qualify, sell Avon, flip some burgers, but get a second job to knock out those bills. Once you've got everything paid off, put away a car payment into a savings account every month until you can pay CASH for your new car...Then you'll be the envy of everyone in your circle of friends....I have no credit score anymore because I choose to pay cash for EVERYTHING, including cars, gas, food, vacations, etc. I use my debit card for airline tix and car rentals on the road. I don't have a credit card, and I don't want one, either. Also, I don't accept them in my business. Why should I be a Dave Ramsey Disciple and NOT help others to avoid running up the debts?

Answer 4

Debt Settlement Vs. Debt Consolidation

Debt settlement and debt consolidation both offer ways of reducing your debt. Debt settlement eliminates part of your loans, while debt consolidation reduces interest rates. Even though debt consolidation has the least impact on your credit score, there are cases when debt settlement is a better option.

Lower Debt

The goal of both debt settlement and debt consolidation is to lower your debt. Debt settlement companies negotiate with your creditors to sometimes reduce the amount of your unsecured debt. There will be a fee associated with the program that equates to roughly 1% of the interest that you will pay if you continue to pay the creditors directly.

Debt settlement can reduce your debt 40% to 60%. A debt settlement program can also cut our payments by 40% in most cases making it easier to cope with your monthly budget. In most cases for a consumer in a debt settlement program they are typically debt free within 2-3 years that can be about half the time it would take in a Consumer Credit Counseling Program or a conventional debt consolidation loan.

Debt consolidation pays off your high interest debts with a low interest loan. Home equity loans provide the lowest rates, but after stretching out the loan over 20 years the 6% interest refinance winds up costing the same amount as a 21% interest credit card. A conventional bank loan will not pay off the debts but rather transfer the debt from one institution to another. This action appears to banks and mortgage companies as a last ditch effort on a consumers part to try and rectify a sinking situation. Many mortgage companies see debt consolidation loans as a sign of stress in your financial situation making it difficult for them to extend you credit in the future.

Credit Score Implication

Reducing your debts through debt settlement is a method to get out of debt in a short period of time relative to your credit history. You credit score will drop, making you ineligible for prime lending situations. You can apply for sub-prime credit after a year however the goal of a debt settlement program is to get out of debt not to create new ones.

Taking out a loan to consolidate your debt will have a major impact on your credit. Since your debt isn’t actually decreasing, you will be negatively hit on your credit for opening another account making your overall situation more overextended. Most debt consolidation loans are issued with the assumption that the problem debt will be paid off and then the accounts closed. However 98% of consumers that get a debt consolidation loan do not close the problem accounts but rather make things worse by incurring new debt on the paid off accounts. Now the consumer is faced with the debt consolidation loan in addition to the new debt on the other accounts that were previously paid off.

Financial Choices

No one financial choice will fit everyone’s needs. While debt settlement will have an affect on your credit report, additional loans may be too expensive. In extreme cases, debt settlement can help to avoid bankruptcy and costly debt consolidation loans. Many debts settlement companies report that about 50% of the debt that their clients put into the program is debt from a prior debt consolidation loan.

Answer 5

Pay down your debt as quick as you can so the interest doesn't get to you. Talk to your lender and see if you can get a forebearance. After you consistently make on-time payments, you can talk to them again and see if the will lower your interest rate.

Answer 6

call credit guard of america. the number is 1-800-500-6489 there are the best

Answer 7

Stop charging immediately, pay off one at a time.