I have quite a bit of credit card debt. What can I do to get control? I don't want to file bankruptcy.?

Answer 1

The four word plan:

Spend Less. Earn More.

In a little more detail:

First, quit racking up more credit debt. Get rid of the little plastic loan sharks.

Next, figure out how much you owe on each debt. Make the minimum payment you can on all but the one you owe the least on. Pay as much as you can on that one. Pinch every penny you can. Pass on the steak - enjoy the beans and rice. Get that second job at Wal-Mart. When that first card is paid off, attack the next one.

It works. It won't be easy, but it works. It won't be quick either. You didn't accumulate the debt overnight and you won't get rid of it overnight either.

Making a $1000 house payment? Maybe you need a smaller house. Making a $600 car payment? A little used car gets you back and forth to where you go as well as a $35, 000 SUV.

Answer 2

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 3

First of all, no more charging. If you don't have the money in your account, you don't need it. Second, negotiate directly with the credit card companies. They are very happy to help people in your situation. So many people file bankruptcy these days and the companies get nothing. They are happy to work with people who are actually trying to make good on their debts.

I worked with my my credit card company to get my debt down after an illness left me unable to pay for a period. I called them up and they were stunned I wanted to make good on my debt. They set up a payment plan that was reasonable and I only had to pay half of what I owed. They completely repaired my credit as well - its like I was never late or missed a payment.

Answer 4

You might contact Consumer Credit Counselling. They can negotiate your interest rates way down, so most of your payments will actually go toward getting your debt paid off. You'll have to cut up your credit cards though, and not have any until everything is paid off.

Good luck.

Answer 5

First of all....STOP using the cards. Cut them up and throw them away if you have to. Start with the one with the smallest balance and pay as much as you can on that one each month. Pay the minimum payment on the rest. When you get that first one paid off, start with the next smallest balance and pay as much as you can on that and so forth until they're paid. That's what Dave Ramsey has said to do.