i have about $5000 worth of credit card debt built up from college that i want to pay off quickly. the interest rates are killing me and i find it harder and harder to pay them, even the min. payment. of course this has had a negitive effect on my credit score so i'm finding it difficult to get a personal loan to pay them off. Any suggestions on how to get a handle on this debt? how about any place that will give you a loan with a low credit score?
2007-01-23 11:40:58 · 7 answers · asked by stinkaferd 1 in Business & Finance ➔ Credit
Change your name and address
2007-01-23 11:48:56 · answer #1 · answered by da_hammerhead 6 · 0⤊ 3⤋
First thing I'll tell you to do is cut up the cards if you have not already done so. Do not even buy a pack of gum on plastic. Next look at which card is hitting you with the highest interest and go after that one first. Put as much money as you can as quickly as you can into erasing the balance off that card. Maintain minimum payments on the rest until card #1 is completely paid off, then repeat the same thing with next highest card and so on.
Forget about the personal loan. You want to eliminate the debt, not replace it with another debt. Another suggestion, which I probably should have thrown at you first, is attempt to negotiate the balance with creditor. If you are carrying $3000 on a card with 21% interest it does no harm to send a certified letter to customer service asking for either a lower rate or a forgiveness of part of the debt. It never does any harm to ask and believe it or not it does work. This shows the CC company you are serious about repaying and will probably want to work with you. I did that on one card years ago, a Chase Visa I think, and they cut the balance down 60%.
Credit cards are all a scam, I'm sorry to say. They do provide a valuable service but the punishing effects of failing to make a payment are immoral. Late fees, userous interest rates, harrassment, etc. Once you're in trouble they make it even harder for you to get out of it. Pay them off and then burn them.
2007-01-23 12:59:07 · answer #2 · answered by douglas l 5 · 0⤊ 0⤋
Cut the cards up take every dime you would spend on new clothes that you really don't need take all the money you would spend on going out with friends for dinner or to clubs and use it to help knock down the amount pending.
forgive me for saying so but trying to get a loan to pay off a debt isn't the way to do things its a quick fix at best. you want to be debt free not debt relocated.
2007-01-23 12:11:52 · answer #3 · answered by mark_grvr 3 · 2⤊ 0⤋
You want out of debt by making more debt? Get on a TIGHT budget, sit down and take a look at where every dollar goes each week, each month. Cut back...change your lifestyle. Buckle down and get it paid off. You'll be glad you did...and make the choice to stay out of debt for good!!!
2007-01-23 11:47:11 · answer #4 · answered by Anonymous · 2⤊ 0⤋
Been there
you will find light at the end of the tunnel.
Start with your income tax.
Are you getting a refund this year?
put the entire amount on your credit card debt.
Then ask your employer for a new witholding statement.
CLAIM zero deductions and add $40.00 more to be withheld in income taxes
by the end of the next year you could have added (26x 40 =1060) plus whatever you would have already gotten and you are halfway there.
Same thing next year and you are done!
2007-01-23 12:02:43 · answer #5 · answered by Anonymous · 0⤊ 3⤋
See if you can find a low rate credit card (even if it is a promotional one good for 6 months) and use that low interest rate to get it paid off quicker. Between this and budgeting, hopefully you get it paid off soon.
2007-01-23 11:50:18 · answer #6 · answered by Michelle 4 · 0⤊ 2⤋
go to this page, fill out the form and take it from there. you'll be debt free in no time!
2007-01-23 12:22:08 · answer #7 · answered by TINY C 1 · 0⤊ 0⤋