I have asked him what he do if he could get them paid off. He told me he would cut the cards in half. He said the bank will not give him a loan because it would be an unsecured loan since he does not own his home or a vehicle that is worth more than the money he needs to borrow. He is not able to make the minimum payments every month and has to also deal with over the limit charges. He has asked me what to do. I suggested trying to open up a new credit card with a 12 month 0% interest introductory rate and transfer the balances but be sure to cut the cards in half first. But that will not work if the new account's credit limit is less than he needs to consolidate the two. He is looking for a solution that will help him pay off his debt. Is there a way he can do this without finding a better paying job?
2006-12-11 18:45:17 · 8 answers · asked by nsgrace 3 in Business & Finance ➔ Personal Finance
No more credit cards. Get Clark Howards book that helps kids with finance. www.clarkhoward.com
See if your son can get a second job. Also consider Consumer Credit Counseling service...they are free...
You can also call the credit card companies and explain the problem and sometimes they can help by reducing the interest rate. It happens.
2006-12-11 18:50:04 · answer #1 · answered by rcpaden 5 · 0⤊ 0⤋
As a good start maybe he could sell off some of the things he purchased with them and use the profits to pay down the cards. He can also call the credit card companies and explain the situation and ask for a lower interest rate and maybe a smaller payment. Sometimes they will work with you because they still get their money as opposed to him filling a bankruptcy where they get nothing.
2006-12-12 02:55:34 · answer #2 · answered by Anonymous · 0⤊ 0⤋
He should pay them off immediately to avoid the extra interest on the revolving credit, then cut up the cards, terminate the accounts.
2006-12-12 02:47:43 · answer #3 · answered by daryavaush 5 · 0⤊ 0⤋
he must first stop spending then he must go to the bank, ask for 3 months grace from the bank where they only capitalise the interest and require no capital repayments, then in those 3 months he needs to make a serious plan and budget, he got himself in that situation and he needs to get out himself, it will only be good for him as he'll really learn to understand the value of money.
2006-12-12 02:53:20 · answer #4 · answered by king of spain 3 · 0⤊ 0⤋
He should get a second or third night/weekend job and pay them off ASAP. You can't get out of debt by borrowing money.
2006-12-12 11:27:44 · answer #5 · answered by ty 3 · 0⤊ 0⤋
I am sorry to say, but you're his dad. You never mentioned that you will offer to help him for now. . . You should help him with at least the minimum payment first before he ruined his credit. Just out of curiosity, how much did he owe?
2006-12-12 02:48:12 · answer #6 · answered by a9113257311 3 · 0⤊ 2⤋
Yeah, how about a 2nd job and quit spending money that he doesn't have.
2006-12-12 10:07:49 · answer #7 · answered by Grandpa Shark 7 · 0⤊ 0⤋
work his a** off and pay them off asap. debt is an awful awful thing!
2006-12-12 03:52:01 · answer #8 · answered by Anonymous · 0⤊ 0⤋