My husband have student loans and credit card debt. Currently it's kind of getting out of control. We don't use our credit cards anymore, but are only able to pay the minimum. What options do we have to possibly roll them all together or just to get a better rate on everything? We have good credit and a good payment history. Right now we're just struggling. Thanks for any help!
2007-06-14 08:53:20 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
First, try talking with your creditors and simply asking for a reduced interest rate; many place give customer service agents authority to make small adjustments on the spot. If they refuse, politely ask them to close your account (they will take you more seriously and trust me that they don't want you to close your account). After any rate adjustments that you are able to secure, close all but your longest held credit card anyway and focus on the smallest bill until you are able to generate some free cash, reduce your debt to income, and improve your credit score. Over time you should be able to focus your efforts on the bill that generates the greatest interest because paying larger amounts to this account will save you money by making you liable for less interest in the future. Ex. If the minimum for a bill generated $11.00 in interest monthly, you would save more by paying more and reducing the generated interest to $10.00 or fewer a month.
2007-06-14 09:38:00 · answer #1 · answered by Taurean W 4 · 1⤊ 0⤋
Best thing to do is look at your over all budget.
Start writing down everything to the penny you spend money on. Then you will see exactly where you can cut back.
Take lunches to work instead of buying.
Stop getting fast foods or candy bars.
curb smoking if you do. The little things is what eats the money. Then take that money and use it to pay more on credit card bills.
If this does not work, then you can refinance, try to get a lower interest rate on your cards also, even paying 3 to 5 dollars over the minimum is a step in a positive direction.
2007-06-14 09:07:57 · answer #2 · answered by Cat 2 · 0⤊ 0⤋
i feel ya! i did this.....
1) list all RECURRING bills--balance--minimum payment--interest rate.
2)list any other monthly amounts needed to get by.
3)add to get total, divide by 2 or 4 (depending on pay periods you recieve) Q: is this figure useable? if not consolidation is an AID to debt freedom.
4)DEPOSIT that amount + whatever you can swing! (sometimes it's alot sometimes it's not. it's ALL O.K.) PER PAY PERIOD!
5)pay off whomever you owe the least. pay them their payment plus whatever extra you can SAFELY swing. once payee #1 is done, ADD the payment plus the extra to the next fastest-to-pay payee. and keep rolling down the hill. things move incredibly fast once you get the first credit card or two out of the way.
this worked really well for my bride and i. when we met, we BOTH came out of horrible relationships, loaded to the hilt with debt. we payed it all off, got married, had a wonderful honeymoon, bought a house, had 2 kids, blah, blah, blah...
NOW..i'm a stay at home daddy, my bride works about 35 hours a week, we live in a typical middle class neighborhood, do typical middle class things, all on a very minimal income.
we're not rich, but happiness is priceless!
(i actually consider us very wealthy!)
2007-06-14 09:15:13 · answer #3 · answered by daddio 7 · 1⤊ 0⤋
Since you have good credit, you should call your credit card companies and ask them to lower your rate. This is especially effective if you have an offer for a new credit card with a low interest rate. You can say, "I have a long history with your company, and I would love to remain your customer, but XYZ is offering us a 0% (or 5.9% or whatever), and we're considering transferring our balance to them unless you'd be willing to match the rate."
If the person you talk to initially can't (or won't) help you, ask to speak to a supervisor. If the next person won't help ask to speak to his or her supervisor. Keep going up the chain until you get someone who will help you.
2007-06-14 09:22:34 · answer #4 · answered by Kathryn 6 · 1⤊ 0⤋
Pay off the smallest onefirst, then the next and so on. Get a second job temporarily until it's paid. I always worked for Servicemaster when I needed to do something like that.
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2007-06-14 09:01:15 · answer #5 · answered by Kacky 7 · 2⤊ 0⤋
Refinance everything. Try to get a lower interest rate.
2007-06-14 09:00:44 · answer #6 · answered by Nathanael 2 · 2⤊ 0⤋
Oh ok... I got this for you...
better check on it... Im pretty sure you'll discover something
http://www.studentloansmadeez.com
2007-06-14 09:46:32 · answer #7 · answered by Anonymous · 0⤊ 0⤋
get a job and a second job and then pay more than the min. balance.
2007-06-14 08:59:52 · answer #8 · answered by Anonymous · 0⤊ 2⤋