What's the best way to pull yourself out of a huge amount of credit card debt?

Question

Let's just say your buried, and your not able to pay more than the minimum every month...is there a better way?

Answer 1

I wouldn't file Bankruptcy, it ruins your credit for 7+ years. Consumer Credit Counseling is an option but most will charge you to do what you could do on your own,(not much because most are nonprofit) they can ruin your credit by missing payments.

So here is what I would suggest.
1) Stop using the Credit Cards

2) Write down and list all your debts (be complete) Write down the rate of each

3) If you have made all your payments on time call your credit card companies and tell them you want to lower you interest, if they say no then tell them you are considering your choices. They will usually work with you.

4) Then make your payments on time.

5) Pay a little extra on your highest rate Card you may have to cut back your daily pop or bring your coffee, or lunch from home. Pay that little extra until that card is paid off. Then take that whole payment extra and all and pay it on the next highest rate. and Continue the proses until all cards are paid off and closed. It is the same thing Consumer Credit Counseling will do. It's called a roll up method. Rolling each payment in to the next until paid off.

This does take discipline, but that little work and effort will not only save your credit but make it better, and save you money in the long run.

Answer 2

The best thing to do is maintain what you're doing, but start by paying a bit more to the higher rate ones. But maintain the level of payment that you making now. Regardless of what THEY tell you is the minimum, pay what you are comfortable paying. This will help accelerate your payoff schedule. The key is always avoid just making those minimum payments. So if you're comfortable making your minimum payment of $100 per credit card NOW. Don't ever go below that. When you finally pay off a credit card complete, shred it and then apply that $100 to the next credit card. Keep that up and you'll be clear. Good Luck.....

Answer 3

1. Whatever the minimum you paid this month becomes your new set payment. In other words, if you paid $300 this month in minimum payment, then pay that next month as well despite the required minimum being less.

2. Look into transfering to a 0% intro for 12 months...the link below has such cards if you have good to excellent credit. They even offer $10 for every referral you send that gets approved.

3. Now that you have a set payment you are making and hopefully have a lower rate, try to add to your payment by either increasing your income or reducing your expenses.

I have some great ways to save money on your Internet, phone and cellular bills...check out my site below. That helps reduce your expenses. The money you save you can now apply on top of your set payment.

To increase your income, you could get a second job or ...and this is what I'm doing...start your own business for FREE. At my site, you'll find a link to a free business opportunity with no purchase requirements. They offer all sorts of products and services that you can sell and earn 30-80% commissions. I personally have a lot of debt and am doing all these steps and it is working great. Last month I made $600 via this business and am applying all of it on top of the payment I've been making. I'm on track to do it again this month. This works!

Answer 4

Look for a low or zero interest credit card to transfer your balances onto.

I am serious when I tell you that I have marginal credit and NO JOB other than EBAY!!
I called bank of america
1800 732 9194
or 888 801 3723

and they gave me 6k line of credit with 0% for 12 months!

My plan is to pay as much as I can while there is no interest. and in December if I am not paid off (which I doubt I will be) I will look for another 0% to switch the debt to!

If they gave me one, I am sure that they will be willing to help you too.
Since there is no interest, of course the minimum payments went down considerably however my plan is to contiue to pay the same amount that I was paying prior to this stroke of luck so that I can put a larger dent into the debt.
I should be completly finished with this in 3 years or so...
THe new credit cards are NOT in my wallet.
I refuse to use them
because if you do, the interest part of the card will be paid before the non interest part is which will put me back in the same boat!

Answer 5

The business of debt collection has become very lucrative and the collection of "old" is on the rise. It would be wise to know your rights when it comes to getting collection calls for old debt especially debt that is excess of seven years and no longer appears on your credit record.

1. Be aware of the statute of limitations in the state you live and in the state the debt was incurred if they are different. If it has expired, the collection agency will have limited legal options.

2. You may want to ignore the call. If the statute of limitations has expired they have very little recourse and you have a lot to lose by negotiating repayment. Repayment could cause it to be relisted on your credit report again.

3. Write them a letter and send it certified mail. Do not admit to the debt. Once they have received the letter the law prohibits them from contacting you again.

4. Know what your rights are. A copy of the Fair debt Collection Practices Act or a copy of "Money Troubles" by Leonard will familiarize you with what your legal right are.

5. Watch your credit report. If you see something on your credit report that is incorrect, you can dispute it with the credit bureau. If the reporting agency or creditor can not prove that the information is correct, it will be removed.

6. If the statute of limitations is still current, you may want to try to work out a settlement with the agency. Negotiate with them and see what you can get worked out.

Collections has become a very lucrative business. Knowledge is power. You will best be able to handle your debts if you know what your rights are and where you stand.
get more information about debt at: http://www.card-gallery.com/article/search,debt

Answer 6

Stop using the cards and just keep chipping away. Before you know it you will find yourself at a much lower debt level.

Debt is weird thing sometimes, you feel like you will never be able to get out of it but if you just just keep paying what you can without putting new charges on it, you will get your debt down faster then you think.

Answer 7

You can contact a credit counseling company who will then set you up into a payment program with your creditors...but beware, once you do this you will be unable to obtain a home loan or any other major purchase until you are all caught up...which could take many years. Best thing : cut up all your credit cards NOW....don't charge more than you can pay off totally each month. If you can't afford to pay cash for it....then you can't afford it !

Answer 8

debt consolidation, or bankrupty, depending on the amount