Shall I apply to those debt reduction services for my cc debt of 20k? I am never late for a payment.?

Question

20 k in cc debt. never late for a payment and no derogatory items in my report. but i have 6 cc's and everything I am paying is going to interest and my debt doesn't go down. my credit score is very low (around 630) even thogh my payment history is perfect. Shall I apply to those services where they negotiate your debt with the cc companies? I heard that doing that also reduces your credit score. What is the best way to get rid of this debt as quick as possible?

Answer 1

First, stop using the credit cards.

Second, find ways to cut your expenses. Make a strict budget. Get rid of the premium cable and internet, magazines, newspapers, eating out, etc.

Third, get a second job to increase your income.

Put all the extra money on the credit card with the highest interest rate and pay minimum on the rest. When the highest rate card is paid, go to the next one. It may take 4 or 5 years but you can pay off all that debt yourself.

Debt reduction services will trash your credit, almost as bad as bankruptcy. Plus you take their cut first.

Answer 2

I don't think that those companies are a good idea for you. You make your payments on time every month and don't have any accounts that are in collection. In order to pay down your debt, try to put extra on the account with the highest interest expense while paying only the minimum on the others. Once that one is paid, move to the next and so on until you are at the card with the lowest interest expense.

Answer 3

You need to find an amortization chart that will tell you how long it will take to pay off each card at its own APR. THEN you need to cut up every card, and only use your DEBIT card. THEN you need to set up auto pay from your bank account to pay these cards off monthy, whatever the amortization chart tells you to pay in the time you want to pay it off.

Here's a site that will help you understand how much interest you're being soaked for and how much the monthly payment should be to pay it off entirely:

http://www.hsh.com/calc-js-synd.html

Also, if you can, shift all you debt to the lowest APR card. If they all suck and you still have good credit, find one that wants your debt and offers a good APR.

Make it your new hobby to get out of debt.

It feels WONDERFUL when you pay off that final card!!!!!

Answer 4

If the spending became going into the infrastructure and coming up center jobs for the final American they may be good, yet the place is it going? we've basically bailed out the CEO's of the banks and bonuses for the insurance exec's. There has basically been 25 momentary jobs created and small tax reliefs. this does not placed the money into stream to help anybody different than people who get bailed out. Hoover and Roosevelt a minimum of started via installation jobs with the W.P.A. and C.C. Camps, which placed many decrease earnings human beings to artwork on highways, national and state parks and school shape. Bailing out a wasteful enterprise who maintains dropping the money on bonus and holiday trips is organic lack of understanding and idiocy. particularly of last the automobile flowers they ought to apply them to construct equipment to construct up the militia, hence giving jobs to hundreds of thousands. it would additionally shrink the fee of government expenses for the militia. they might probability build a $4 hundred,000,000 plane for 0.5 that quantity. I hate to declare this, yet our so referred to as economists have not any thought what they're doing because of the fact they have not something yet e book studying between their ears.

Answer 5

There is a great place to go with this. I was in a very similar situation.

This is getting help from real people without the use of banks or credit card companies. Good Luck!

http://www.prosper.com/join/Lzc5wh