21 and in debt?

Question

I'm 21 with a few credit cards that total around $4,000.00. Most of them I used for things like wisdom teeth extraction, car repairs, etc. I have good credit, but am having a hard time trying to pay them off. I've been paying the minimum's on time, but am not getting anywhere. Has anyone ever had this problem and what should I do? Continue to pay the minimums? (I've already cut the cards up so I can't use them.) Or should I contact a credit consolidator? Does that look bad on my credit? Are they reputible? Please help!

Answer 1

It sounds like you're on the right track. A credit consolidator does look bad on your report when a lender looks at it (it raises a red flag that you've had trouble paying your bills, which will make them hesitant to lend you more)

I agree with what was said above, keep paying the minimum due on all but one, which you should put all your extra money onto. Which one of your cards you do this with is your choice. You can pay the extra to the highest balance if you don't feel comfortable with such a large debt on your shoulders. Or you can pay extra to the card with the lowest balance, which will pay if off quickly and encourage you to continue. But the plan that makes the most economic sense is to pay off the card with the highest interest rate, which will save you money in the long run.

As for not having enough money- try your best to save as much as you can. Cut out fast food altogether, consolidate your errands to cut down on gas usage, see if you can go without a cell phone or extended cable, ect. There are always ways to cut back.

Answer 2

It's gopod you cut up the cards. OK minimum payment basically covers the interset rate applied to your credit amount. By still only paying the minimum every month you are still in descent standing, but if you pay the minimum and then an additional payment($ ? you determinewhat you can afford reasonably) and send that payment in before the next balance due you can apply that payment towards your actuall debt. Takes a bit of time but you can reduce you debitaswell as the monthly minimum paymkent due.also your dental visit is a taxable deduction aswell as vehicle repairs , maintance, and a specific amount of mileage driven for employment, includes the money it cost you in gas. Do some deep digging at your bank if any of these were purchased on your credit cards, and send in the statements in with your taxes this next quarter.

Answer 3

What you do is pay the minimum on all your cards except one. Then you put all your extra income each month into paying that card. Once that one is paid off, you move on to the next card and the next. Otherwise, you take out a loan with a bank (much lower interest) and pay that instead.

Answer 4

Even though 4k seems like a lot right now it isn't. I don't know if Credit Counseling would help with that low of a balance. Since they are cut up, stay on a strict budget give up eating out lunch or maybe stay in 1 or 2 nights a month and put that money toward your cards. You will get out of them in no time. Stay dilligent. good luck

Answer 5

the fact that you cut up the cards is great! it's the first step to get out of debt.
I assume one or more is a major credit card (not a store card)? one way is to consolidate all the cards on to one...obviously the one with the lowest APR. that way you only have to worry about 1 bill and you will prob end up paying less on just that one than all of them combined.

Answer 6

Don't go to a consolidator, you can wind up worse. Continue to make your payments on time. If you are late, then they could report you to the bureaus and it will stay on your record for 7 years. You can contact the creditors and see if you can work on a payment plan.

Answer 7

What they said. I haven't had a credit card since '98, and I'll NEVER get another. If I can't pay cash, then I do without.