I am in debt with a ton of past due bills. Will a credit card help me out or just get me into more debt?

Question

I just applied for a chase credit card, its my first time. Did i do wrong?

Answer 1

I afraid it will just cause more debt

Answer 2

First, putting these past bill son a credit card does not get rid of the debt. It just moves it. So it does not help in that respect.

Second, you're now paying interest on those bills so you end up paying more money.

Third, the credit available may be more than the total of your bills which anyone will naturally be tempted to use. Now you have even more debt.

You're best bet is to contact these past due bills one at a time and pay them off. Don't give anyone electronic access to your bank account. Don't give anyone post dated checks.

Answer 3

I'm afraid that a credit card will just add to your debt. If you were planning to use the credit card to pay off your other debts, remember that the interest rate on your credit card is probably higher than any of the other interest rates. You cannot borrow yourself out of debt. If you need help, consider contacting the Consumer's Credit Counseling Service (CCCS). They can help you work out a plan to get yourself out of debt. This group is reputable and very helpful. They are not a scam, as are so many that advertise on TV. It won't be easy, but you can get back on track and save your credit at the same time.

Answer 4

A credit card will cause more debt. Call the companies whom you owe money and set up a payment arrangement. They are usually pretty good about doing that. If some are already in collections, call and do the same. Pay it off until it is cleared. Some will even agree on a settlement amount which is less than your owed amount if you ask! Credit cards will only ruin your credit and get you in debt. Good luck to you.

Answer 5

Yes. Everything is negotiable. However...keep in mind that this is more like a game, say poker, in which everyone says they want the "best" for everyone, but that isn't really what they want -- they want the best for themselves. If you end up dealing with collection agencies, the situation & game is 100 times worse. The bottom line is simple: they would rather have some rather than nothing; more rather than less. Some people have enormous power to negotiate a deal with you, others have almost no authority to offer you anything other than a standard option or two. The people who have the most difficulty are people that the banks think or know are capable of paying (almost) in full who are also unable or unwilling to go to extremes (bad credit, foreclosure, bankruptcy, etc) to get what they want.

Answer 6

the credit card you applies for might not be best the best move in terms of fixing your financial woes. if you have the credit card the rate would be really high and probably not worth it in the long run. if i was you i would consolidate your bills with a loan from your bank who will try to work with you to clean up you bills. then after that a credit card might be ok but stick with the debit card it just seems more reliable and less likely to ruin your credit score.

Answer 7

If you use it much, for anything other than true absolute necessities, then you'll just be digging yourself in deeper.

You might or might not get approved for the card anyway, if you have "a ton of past due bills". But if you get it, be very careful on what you use it for.

Answer 8

I doubt you will even get the card, sorry sometimes the truth hurts. Take care of the debts you have now before taking on new ones. And yes you did wrong!!!!

Answer 9

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

Answer 10

It will get you in heavier debts. Visit "www.debtsawareness.com" to have a better understanding of debts and loans b4 you act. All the best.

Answer 11

yes -- downsize i know you do not want to hear this but until you get the back bills paid everything must go but your house/apt and utility which does not include a phone. take all the money that your will save from downsizing and get your butt out of debt and stay that way!!!