I have a credit score of 500 and lots of credit card debt.
2006-12-07 16:27:36 · 8 answers · asked by brown skin girl 1 in Business & Finance ➔ Credit
What a bunch of useless responses.
First organize your debts into the following categories.
Immediate expenses>>>rent mortgage bills food
(life or death stuff) etc etc.
Credit expenses>>>>credit cards lines of credit bla bla bla (luxuries)
You need to apply for a consolidation loan but bne warned that the low monthly payment comes with strings attached meaning it will take you a long time to pay because consolidation loans usually carry interest at 5% or more above the prime rate.
A consolidation loan is like liposuction it sucks out the fat but if you still eat like a pig youre still unhealthy and youll get back into debt again.
So after you get your consolidation loan. Realize you need to go on a budget a financial diet. If you have a taste for the finer things in life than you realize that your income can't support that.
That is when you should consider getting into invetsments buying a house and renting it out and creating additional streams of income for your expensive lifestyle.
If youre on the verge now of getting bad credit and your application for a consolidation loan fails than let your credit expenses default since youre screwed anyway.
Once your credit goed into default you can clear your head and be relieved that its over and refocus on rebuilding you credit, and consider insolvency and bankruptcy depending on the amount owed.
Bankruptcy is a mark on your credit file for anywhere between 5 to 7 years so dont do it for some $900 T.V.set. If youre up there at $20,000 or more you may consider it a good idea.
If you get screwed over with bad credit you can re-establish your credit with a "secure" line of credit. It's called scure because it is based on your money.
Call Capital one Master Card at 1-800-481-3239. They are the credit card of last resort for people with bad credit. How it works is you put your own money up front on the card and this lets you build your credit up again. Like a pay-as-you-go credit card.
Don't screw them or you will never get credit again.
Don't cup up your credit cards either. Sometimes governement agencies and video stores need you to present them as I.D.
2006-12-07 16:40:01 · answer #1 · answered by the wise one 2 · 0⤊ 0⤋
Don't make a deal with a Credit Counseling service unless you are totally desperate! They get the credit card companies to write off part of the debt & it looks just as bad a a bankruptcy on your credit report.
Cut up the cards & get paying. Consolidate if you can and pay higher than the minimum whenever possible. Get rid of the highest interest rate debt first & keep going until you're done!
2006-12-07 16:36:49 · answer #2 · answered by Quarter Midget Mom 5 · 1⤊ 0⤋
Wow that is a lot of money to owe on a credit card. I suggest to keep it how it is but try to pay more than the min. This will make the principle go down and the finance charges less. You can also call the card company and request a lower interest rate if they say no keep calling and asking and tell them another company wants to buy the loan out. Do everything in your power to pay as much as you can on this debt. if you swith it to discover you will end up paying more not less
2016-05-23 05:40:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
check out daveramsey. com. First thing CUT THE CREDIT CARDS up.
2006-12-07 16:30:22 · answer #4 · answered by Anonymous · 0⤊ 0⤋
have you ever read the book by Dave Ramsey called finical peace?? Its really good and has a lot of great tips
2006-12-07 16:35:31 · answer #5 · answered by nervousenergy73 5 · 0⤊ 0⤋
Move to an other country
2006-12-07 16:31:03 · answer #6 · answered by Chris 3 · 1⤊ 0⤋
just stop using it further and make a habit of only repaying till its gone
2006-12-07 16:29:22 · answer #7 · answered by Trinity 4 · 0⤊ 0⤋
go to www.primerica.com and find out the nearest office near you....
2006-12-07 16:29:31 · answer #8 · answered by chol0757 2 · 0⤊ 0⤋