What is the best way to resolve credit card debt?

Question

My husband and I are struggling to pay our mortgage, two car loans, consolidation loans, two credit cards, student loans as well as medical bills for new baby. Should I see someone in a CCCS organization, or just try to stick it out for as long as I can? Our debt to income ratio is now 74%, by the way.

Answer 1

first off stop using any credit cards.secondly call them all and ask to get the interest rate dropped insist on an even lower rate, tell them a competitor has offered you a large credit line at an almost unbelievable rate, but you wish to stay loyal to them. next stop using all the cards you have . do not get more cards.do you really need 2 cars or can you make due with one. can you get cheaper cars, it's just a car. do not buy anything unless you absolutely need it . make a list of things you want to purchase. separate this list into things you want and things you need ( be brutally realistic ), you need food but you can live on bread and baloney instead of bacon and tomato, stop ordering out. do you have cable ? if yes cancel it. eliminate all the things on the want list , not forever just for now .when you are about to purchase anything ask yourself do i need this if the answer is no do not buy it. get a second job, deliver papers. remember you are the grown ups in your life so you must be the hero's as well . your kids will be the better for this ..
did i mention stop using credit cards for anything.
good luck and stick to it. :)

Answer 2

I tell anyone who gets loans for school do not take any consolidation loans under any circumstances because they only cause you to be further in debt this is just to stave off things until you're able to pay which is a joke. I would look at credit counseling very carefully because you don't want to get into one that charges a high fee for service when all you want is to lower your monthly payments. I would look into CareOne credit counseling because you might be able to get your debt lowered. Credit cards should never be used to pay for things you can do with a check or cash because the interest rate is high if you're late a lot. Having a new baby is a lot since the bills for their care alone is going to eat a good portion of the income you bring in. Here's CareOne's website it's www.Careonecredit.com and find out if you qualify to get service hopefully this will get you back on track.

Answer 3

The first thing you need to do is call your credit card companies and ask for a reduced interest rate. If you can reduce your interest payments you can make more progress on paying things off.

Cut up your credit cards, except one for EMERGENCY USE ONLY. If you can't pay for it with a Debit card, and its not a car or home repair, you don't need it.

Cut your expenses to the bone. Spend the next six months eating Ramen and getting your entertainment from a copy of "Monopoly"(tm) if you have to.

Are you both working? If not, then the currently unemployed household member should get a job. Go for second or third shift so you can both work, but you don't need to hire a babysitter.

Exhausting? Yes. Hard on your marriage? Yes. Will you be glad you did it when you pay off your debts and can quit the job in six months to a year? HELL YES.

Answer 4

Pick up the phone and call the two companies, ask for a supervisor and explain your dillema to them. If you get no satisfaction from that send a letter detailing your problem to the same company. As for paying minimum monthly payments: That is never a bad idea. While it won't eliminate your debt in less than a few years - depending on your interest rates - it will show a sign of good faith and will not affect your credit. The last resort, were I in your position, would be to go directly to your boss and explain in detail the how's, why's and wherefore of the debts. If you are a good employee the boss may have a source. We have done that many times for employees in the past. Sometimes we lend them money, sometimes give them advances and make them sign notes for the debt with a scheduled pay-back to our company.

Answer 5

As long as you've been making payments on time, you probably shouldn't get credit counselling because it will be a bad mark on your credit.

Pick your card or consolidation loan with the highest interest and put all the extra money you can into paying it off, making the minimum payment on everything else. If you get a chunk of money from a tax refund or whatever, put it towards the highest interest card. When you have that one paid off, take what you were paying monthly towards that one, and now use that money to put towards the next card, in ADDITION to what you were already paying the next card.

Stay with the minimum payments on the student loan and the medical bills because they will have the lowest interest, and they don't hurt your credit so much if they're part of your debts.

Do research on frugal living and money management to find out exactly where your money is going and tips on how to reduce your day to day spending on food, groceries, and other extra items. Like, you could use cloth diapers because disposables are so expensive. You can make your own baby wipes out of papertowels, baby soap and baby oil and it's WAY cheaper than buying them in the box at the store.

You can find all kinds of ways to reduce your spending by finding cheaper alternatives to the things you buy every day or every week.

Answer 6

The primary aim to consolidate debt should be to reduce your total costs. To achieve this, you have to consider the following two points:

-Shop around for the loan with the lowest interest rate.

-Chalk out a strategy to clear off the debts in 3-5 years.

The following are some of the best methods of debt consolidation:

Credit Cards: If you have good credit rating, you can get a card offering lower interest rate than other types of consolidation loans. Besides, you do not have to deposit any collateral, making it virtually risk-free credit. Find out from the current issuer the interest rate they are willing to give you, for balance transfers from other cards to their cards. Choose a fixed rate if possible and request them not to charge transfer fees. If that is not possible, look around for another card. Many sites offer you a wide choice of cards with different interest rates. But do not apply for plenty of applications simultaneously as it can damage your credit rating. Once you get a card, draw a repayment plan to clear your debts within 3-5 years.

Answer 7

Credit card debt reduction has become a necessity because of the numerous negative impacts of improper and mindless use of plastic money. Be it carelessness of usage or the conceit of users, whatever be the reason, credit cards can effect on your credit standing in a negative manner. Due to easily accessible facilities of credit cards, people can hardly resist of stocking and adorning their wallets with plastic money. Being an almost inevitable vanity of each wallet, these plastic cards have become more preferred mode of transaction than cash. As these cards are simpler and quicker sources of money, users are more focused on the advantages than to fathom its disadvantages on their financial conditions. Therefore, a lions share of credit card users ends up accruing poor credit status and become ineligible to receive loan approval and not to mention other negatives of a poor credit rating. This is the reason why one should consider credit card debt reduction or credit card debt consolidation to get out of the trap and become debt free.
Read more about debt consolidation at: http://www.card-gallery.com/article/169,How_Credit_Card_Debt_Consolidation_Can_Help_Improve_Your_Credit_Standing

Answer 8

CCCS and other places like that will have you cancel all of your credit cards. Also, be real careful. CCCS is OK, but some of the agencies take the money from you but are slow in paying your bills to the credit card companies, so your credit actually gets worse! I don't advise sticking it out. Get out of debt whatever way you can and start over.

Answer 9

I suggest you to join a debt settlement company who will negotiate with your creditors on your behalf and try to bring down your principal unsecured debt amount by around 30% to 70% depending on your credit companies. You can make affordale monthly payments and be out of debt within 36 months.
There are no hidden costs and upfront fees associated with the monthly payment options.
They will also work with collection agencies and law firms.

Check out this debt settlement company who has helped me out with the unsecured credit card debt problems.

http://www.debtfreeafterall.com

Good Luck

Answer 10

don't use any of the card til u pay them off. Then try to make your min on bills, try to work more hours at work,,