I have just about $5,000 in debt from credit cards, and I can't work full time because I go to school full time. I want to consolidate my bills so theres just one easy payment each month, not 10 or 11, because I can handle one. Does anyone know of any companies that help consolidate loans or credit card companies that give out high limit cards strictly to transfer balances. I'm only 19 and would never file for banctrupcy but I need to get them all organized so I don't get to far behind in late fees.
And please, no lectures on "oh well you shouldn't have used credit in the first place, you should have known this would happen." haha Yeah, I know. I'm kicking myself over it now, and I'd just appreciate some suggestions. thanks!
2007-03-07 16:00:31 · 6 answers · asked by xxxxxracheyxxxxx 2 in Business & Finance ➔ Credit
Consolidation should be used only as a last resort as it will damage your credit. It will be noted that you are in consolidation and this is generally frowned upon.
My best advice for you would be to organize your cards from highest to lowest interest rates - pay the minimum on all cards but one and then pay as much as possible on the one until you knock it off of the list.
Do not fall into the trap of using the credit you will free up by doubling up your payments. If you can find lower rate cards or cards with no interest offers, you might consider taking one of those and moving the balance of a high rate card to it.
If you're receiving financial aid from school, utilize one of those refund checks to pay off a card. Your school loans are probably only 3-4% interest whereas your credit cards are undoubtedly more.
Best of luck.
2007-03-07 16:10:58 · answer #1 · answered by cheeto_sandwich 2 · 1⤊ 0⤋
You've already got some good answers here, but I suggest instead of taking out student loans... more debt to repay... see about financing school (or as much of it as possible) with grants. The financial aid office can help with this.
Also, develop a plan (you're smart, you can do it) where you pay the minimum balance every month on the cards with the lowest interest, and more on those with the higher interest, every month.
If you don't already have a part-time job, maybe you can find one that isn't really stressful... maybe even babysitting or something.. where you can do some studying while you work. Some campuses have tutors, and you may be qualified to tutor.
If Mom and Dad are willing to help, maybe they'd float you a no-interest loan and let you repay them on a monthly basis??? Stranger things have happened. Hey, you're young and youth is when you want to make your mistakes, so you can learn not to do things in the future and avoid even worse consequences later... and... Mom and Dad know this. ;)
2007-03-07 16:19:39 · answer #2 · answered by Anonymous · 1⤊ 0⤋
You should really take out a student loan and pay off the credit cards with part of the loan procedes. Federally subsidized student loans are interest free while in school and very low interest rates that begin to accrue when you finish school. At that point the loan interest is a greaaat tax deduction you can use when you start working.
You think the difference in interest rate won't matter? Think again. Credit cards are usually 15% - 18% rates. With $5K if it takes you 4 years to pay off, you could be looking at $4k of Interest alone. SO your $5k in debt costs you $9k. Not good.
Take advantage of the federally subsidize student loans available to all students.
Those consolidation companies are can be somewhat shady.
2007-03-07 16:11:23 · answer #3 · answered by Brad S 2 · 1⤊ 0⤋
I would suggest you to join a debt settlement company which will negotiate with your creditors on your behalf and try to bring down your principal debt by around 30% to 70% depending on your credit companies. You can make affordable minimum monthly payment which is one payment per month for all your credit cards.
A debt consolidation will not negotiate to reduce your principal debt amount. But you are allowed to make monthly payments.
The debt settlement companies will work for the benifit of its clients. Check this company who helped me out with the same kind of unsecured debt situation.
http://www.debtfreeafterall.com
Good Luck
2007-03-08 08:27:18 · answer #4 · answered by Hima K 2 · 0⤊ 0⤋
I would suggest going to a bank and talking with a loan officer they have debt consolidation loans available. If you qualify is the other question GOOD LUCK. and your right being in debt from credit cards sucks I was there myself and did learn my lesson. GOOD LUCK
2007-03-07 16:14:21 · answer #5 · answered by Anonymous · 1⤊ 0⤋
cut up all but one credit card
2007-03-07 16:10:09 · answer #6 · answered by Benchwarmer 3 · 0⤊ 0⤋