I have about $6,000 of debt from credit cards spread over about 5 different cards. I would like to have it ALL on one bill. Should I consolidate it? What do you think my best bet is? ( I always pay over the minimum amount due, by the way.)
2007-07-16 15:18:42 · 7 answers · asked by lion75 3 in Business & Finance ➔ Credit
It is important that you take steps to get your debt under control before you end up in serious financial trouble.
Find a Way to Get Better Rates
One way that can help you get rid of the credit card debt that you are in is to find a way that you can get better rates on your credit cards. You can do this by trying to find a credit card that has lower rates than your current cards, and then make transfers over to the card with the lower interest rate.
Another way you may be able to get better rates is to try to negotiate with the company or have a credit counselor negotiate with the company to get you better rates on your card. While you may not realize it, having a lower rate can actually save you hundreds of dollars and can help you get out of credit card debt much faster.
Eliminate Debts One By One
If you are wondering how to eliminate credit card debt, another way that can be a great help is to start working methodically to eliminate your debts one by one. You can choose either to pay extra on your card with the lowest amount of debt or you may want to pay more on the card with the highest interest rate, but whichever way you choose will be a great way to help you get out of debt much faster.
Debt Consolidation
If you are serious about getting rid of your credit card debt once and for all, you may want to work on getting a debt consolidation loan. This method of elimination will help give you lower interest rates, a regular payment schedule, and you will only have one easy payment to make each month. This is a very easy and effective way to eliminate the credit card debt that has been causing you so much trouble. Read more from: http://www.credit-card-gallery.com/article/195,4_Tips_on_How_to_Eliminate_Credit_Card_Debt
2007-07-16 23:39:33 · answer #1 · answered by grierGRIER h 3 · 0⤊ 0⤋
I think it is usually better not to do bankruptcy, which will harm your credit report worse than mere charge-offs and collections will. But of course it depends on a lot of factors. You could also consider credit counseling. Your creditors can take you to court and sue you to get a judgment. The judgment MIGHT lead to garnishment of wages or a lien on your house, or access to your checking account. Note that those options are pretty limited -- bankruptcy is primarily a means to protect your assets from creditors -- usually not needed for unsecured debt. Note that your situation with credit cards is way different than the guy above who had medical bills. Different laws apply. I very much doubt anything as draconian would happen to you. And you don't get arrested for not showing up in court. You just lose default judgment. More likely, they will never take the step of suing -- that takes time, money and effort. But no guarantees. Your state has a statute of limitations, after which creditors cannot successfully sue you (varies, usually about 3 - 6 years). You should research that, and what triggers the "clock" and what if anything can restart the clock in your state. Some people just wait it out til SOL expires, then take action to clear up their credit reports.
2016-05-19 22:16:44 · answer #2 · answered by ? 3 · 0⤊ 0⤋
It anyone will lend you the money to consolidate, go ahead, but it's doubtful because it's all credit card debt. Pay the minimum on all cards except one. Put the excess you usaully spread out onto one card and get that one card paid off quicker. Once paid off, continue paying the same amt overall, you would be able to increase the extra amt to pay off the next card and so on
2007-07-16 15:25:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It would be convenient for you to have only one bill. It is better to pay the ones with high interest rates first rather than just pay extra toward all of them. Of course you must pay the minimum due on each card.
2007-07-16 15:23:06 · answer #4 · answered by Nelson_DeVon 7 · 0⤊ 0⤋
consolidation usually helps because it lowers your interest rates and helps you pay off debt faster, but it will show up on your credit report. but, if you only want one bill and can't transfer some of the higher rate cards to your lower rate ones and then pay more on it, then yes i would consolidate them.
2007-07-16 17:18:55 · answer #5 · answered by mrs garfield 5 · 0⤊ 0⤋
Yes, and you can save money by transfering your balances to a new credit card. With Chase you can get 0% interest on balance transfers for 1 year. With American express you can get 4.99% fixed for the life of the balance.
2007-07-17 09:09:24 · answer #6 · answered by Helper 2 · 0⤊ 0⤋
i do not thing anyone could come up with a better answer that the ones you all ready have == good luck
2007-07-16 15:40:08 · answer #7 · answered by Anonymous · 0⤊ 0⤋