I have debt a little over $7,000. I was unemployed for awhile and just now getting back to paying my regular bills i.e. car, mortgage, phone, gas, and food. I'm just making enough to pay these bills but I want to stop the incurring interest on my credit cards so I can pay them off completely by 2008. What do you suggest?
2007-04-01 03:01:47 · 13 answers · asked by akatilidie 1 in Education & Reference ➔ Financial Aid
Give up all the crap that you don't NEED. Load up payments on the debt.
2007-04-01 03:05:27 · answer #1 · answered by Neil Budde Sucks Ass 2 · 0⤊ 0⤋
Your credit card probably is charging you interest and will not stop charging you interest (unless your balance is on a card that temporarily has 0% interest). It might make sense to move the balance to a 0% interest card, but you do want to consider the impact it will have on your credit score of opening a new credit card. The most important thing then to do is figure out how much money you would have to pay each month in order to pay off your debts by the end of 2008.
2007-04-01 03:15:59 · answer #2 · answered by exhausted3L 2 · 0⤊ 0⤋
The best idea is to approach a nonprofit credit counseling service. Most areas of the country have one. They will negotiate with the credit card companies to give you a lower rate. In addition, they will help you develop a sensible budget to help you get out of debt. The service will help rebuild your credit in the process. They do this for a fee, and it is well worth it. You can locate one in your area through the yellow pages of the telephone book under credit card counseling. However, if there is more than one of them, call around to see what their fee is before making the appointment. Also check with the Better Business Bureau if there were any complaints before signing on, too. I have included some helpful links for you below.
2007-04-01 05:50:19 · answer #3 · answered by dawncs 7 · 0⤊ 0⤋
I calculated your debt from April to December and you would have to make payments of approximately $800 per month. You can make two payments a month on the credit cards ($400 each). Make sure the payments you make are more than the monthly minimum. The monthly minimum only pays the interest and a small portion of the principle. Check out Suze Orman's website. She's a financial genius!
2007-04-01 03:13:43 · answer #4 · answered by nikkitruth 1 · 0⤊ 0⤋
IF you have the Credit, get a Consolidation Loan and PAY OFF everything at once. I know this sounds the opposite of what you ask, BUT consider all the DIFFERENT interest you are paying now. It would be CHEAPER to have 1 payment, and set the Loan up to where you can afford it, and ALWAYS pay MORE then is due and APPLY it to the PRINCIPLE to cut down on the Terms of the LOAN. ( the time it is Financed for ) It will save you Interest charges also.
2007-04-01 03:08:02 · answer #5 · answered by Ex Head 6 · 1⤊ 0⤋
I would find two separate credit cards that will offer you 0% interest on balance transfers. The reason I say two instead of one is because they generally cap it off at 4,000 if your credit isn't really good. The key is not accruing any new debt, and paying off what you can. At least pay down half of it, and it you have to, transfer that other half later to another 0% interest card. Budgeting helps, but you know how much you have to pay, just keep it consistent. Good Luck.
2007-04-01 03:11:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I agree with one of the other answers. If you are really serious about getting out of debt. CUT up and CANCEL the cards and go get a loan from a lending institution to pay off all the cards. The interest will be tons lower and you'll only have 1 monthly payment.
2007-04-01 03:10:22 · answer #7 · answered by Thirty-five 2 · 0⤊ 0⤋
Best answer is always try to pay more than the suggested minimum payment. If you just pay the minimum you'll have that debt forever. You may also look for a CC that offers 0% interest for a period of time and transfer the balance over to that.
2007-04-01 03:05:58 · answer #8 · answered by flinttownpoker 2 · 0⤊ 0⤋
Try to consolidate your credit cards. If your credit card debt was all on one card, it might same you some interest.
Always try to pay more than the minimum amount due ... even if it's only a few dollars more.
Be patient ... it takes time :)
2007-04-01 03:09:34 · answer #9 · answered by veggiewax 2 · 0⤊ 0⤋
You could possibly get a debt consolidation loan. You could file chapter 13 Bankrupcy. You can go to a credit counseling service (I think this is the best option) They wll make arrangements with your creditors,possibly stopping the interest & lowering your monthly payments. Many of these services are free.
2007-04-01 03:05:55 · answer #10 · answered by Anonymous · 0⤊ 1⤋
there are non-profit credit counseling associations.
look for one*and* make sure it is NON-PROFIT, some are disguised as credit counselors and are really set up by companies trying you to sign you up for their consolidation loans and their credit cards which let you transfer your debt from one acct to theirs--AVOID THESE COMPANIES
and avoid loan consolidations!!!!
you don't get as many benefits as going thru non-profit credit counselors--who can actually take some of the debt off your account as well as take the interest all the way to zero (if you are inserious trouble and are about to file for bankruptcy)
2007-04-01 03:06:08 · answer #11 · answered by center of the universe 4 · 1⤊ 0⤋