How do you get out of debt faster?

Question

I'm in desperate need of help. My issue is that it doesn't seem like my credit card debt is going anywhere. I can't afford to pay much more than I am each month and it's always more than the minimum. I have applied for the consolidation loans and they all tell me that they can't approve it because I have too much debt. And that if I get my debt down then they could give me the loan. This sounds ridiculous to me because if I could get my debt down I wouldn't need the loan. The credit cards that I apply for to do a balance transfer never give me a high enough limit to transfer all of the debt. It's about 12,000 between 3 credit cards. Does anyone understand what I'm going through and can anyone give me real advice on how to fix the problem? Note: I do expect those worthless people to give me advice like stop spending or something just as useless. I kindly ask you not to waste my time or yours. Thank you to everyone else who really can give some advice that actually help my situtation.:)

Also I don't use the cards anymore. If I do, I put the money back with the next payment.

Answer 1

Bad credit debt consolidation loans are quite popular with those with poor credit history. If your loan application is rejected by a lender, bad credit debt consolidation loans are there to help. If you want to repair your credit history by repaying a loan, which has simple terms and low monthly installments, again bad credit debt consolidation loans are for you. They save you after rejection and help you regain your financial credibility, so that you can again enter the mainstream credit market.

Bad credit debt consolidation loans are of two types:

1. Secured bad credit debt consolidation loans:

These types of bad credit debt consolidation loans are secured by a collateral usually some property or a guarantor. Since, the lenders find something to bank upon in case you default on payments, the interest rates on secured bad credit debt consolidation loans are cheaper, the lending amounts are higher and the repayment period can be long.

2. Unsecured bad credit debt consolidation loans:

Persons who do not have anything to offer as the collateral or security, can take unsecured bad credit debt consolidation loans. The lenders find themselves at increasing level of risk while giving such loans. The existing bad credit situation and lack of a collateral, make them charge high interest rates and offer low loan amounts to offset the risk involved. But, a person who has a bad credit and cannot provide a collateral has little choice, but to take these high interest loans. At least by repaying these the borrower can rebuild his credit history. Read more from: http://www.credit-card-gallery.com/article/198,Get_over_bad_credit_problems_with_bad_credit_debt_consolidation_loans

Answer 2

While I am not, nor have i been in your situation, I do understand what you are going through.
Stop spending in no the answer, of course you have to spend. You just need to look at WHAT you are spending. I'm sure you have cut back on your unnecessary spending. If you haven't done it yet, write done everything you spend for an entire month, the analyze what other cash outflow you can reduce. You will be suprised how much some people spend on Starbucks, etc... without even knowing it.

You can do it, it will just take some time.
The only time you should use a credit card is if you need it to secure a rental car or something like that for work.

Below is a few links that may help you find help, and maybe someone that can give you a credit card at a lower rate.
I am just providing you info, I have no dealing with any of these companies.

Answer 3

I went through exactly what you did and managed to pay off about $14K of credit debt total on 4 different cards in about 6 years.

Don't apply for a consolidation loan; what you do instead is contact a credit counseling company to help manage your debts for you and get them to negotiate lower interest rates on your cards as well as combine them into a single monthly payment (which they will distribute appropriately to your 3 creditors), instead of having to worry about three separate payments. One such site is www.debtfree.org, but do some shopping around as they may not necessarily offer you the best rate; you can google "consumer credit counseling."

And yes, do slice up the cards if you haven't done so already. Don't "Use them and pay it back," even if it's immediately, because all that does is add more interest and put you another month behind.

The other alternative is to do all the work yourself; contact your creditors and ask for a lower interest rate on each card. Then have a set balance you pay toward your card debt each month. Pay the minimum on two of the cards, and pay the highest payment on the card with the lowest balance until it is paid off completely. Then apply the payment on that card to the second card with the next-lowest balance, continuing to pay the minimum on the third card. Once the second card is paid off, then pay the whole payment toward the third card until all the debt is gone.

That's pretty much how I did it...although I dropped the help of the consolidation company once I had paid off two of the cards and had a small amount left on the third, which I paid over the next three months, and then did the 4th card myself.

Answer 4

".... I do expect those worthless people to give me advice like stop spending or something just as useless. I kindly ask you not to waste my time or yours ..."

You can consider me worthless and my advise useless but you are in debt because you are living beyond your means. Looking to shift your debt to another loan only puts you futher in debt.

Best way to pay off you debt is to cut your expenses. Make a strict budget. Eliminate all the extras -- cell phone, eating out, new clothes, premium cable and internet, etc. Take every penny you can squeeze out of that budget and put it on your highest interest rate credit card, while making minimum payments on the rest. When the highest card is paid off, move to the next till they are all paid off.

If you actually work at it, you can pay off that $12K within 2 or 3 years and you'll have a good on time payment history.

Find ways to make more money to throw at the debt. Have a garage sale, collect alum cans, get a second job.

Answer 5

You can pay off the cards in the order of with the highest interest rate first, one by one, you will slowly pay all up. If you need to charge for anything, then you can't afford it. You need to stop spending money that you don't have. You stated that you don't use the cards anymore. If you do, you put the money back with the next payment. Your payment doesn't go to principal, it goes to interest and your new purchases are being accumulated along with your balance and being charged interest. You need to stop charging those credit cards.


If you want to consolidate, try www.prosper.com, maybe you can get a lower rate there than your credit cards now.

Answer 6

STOP USING CREDIT CARDS!u said that if u use it u give it back with the next payment...don't!take the credit cards and put it in the freeze, so u can't use them anymore.and if really u can't cut down on ur budget then think about getting a second part-time job.thats the facts:either u cut down or u increase ur income.i suggest u pay the maximum amount at the credit card with the highest interest and then pay as much as u can to the rest.u dont mention if u have any house on ur name, that could help for a home equity loan...oh.and visit bankrate.com!its really helpfull...

Answer 7

Use a snowball technique, List your debts smallest to largest without regard to interest rate. Pay everything you can on the smallest and pay the minimum on the rest. When you pay off the smallest roll that money into the next one, Just continue up the list until you get them paid off. It can be done this way because I did it. One caveat is that you must stop using them. If you keep digging the hole deeper you will never get out. It takes self-control and time. Do not get discouraged. By the way if your friends and family think you have lost your mind then you are on the right path. Good luck.

Answer 8

You must always be careful with credit cards, car loans, mortgages and debt consolidation. Persoanlly, I was in debt of over $100,000 at one point in time, roughly 4 years ago. I am proud to say I am now DEBT FREE. It is very confusing on what to pay first how to chop down your debt, but there is a lot of good content out there to help. I have also started my own blog to help people out by talking about what I think is important. Check it out sometime!

http://credit-and-loans.blogspot.com/

Answer 9

Debt negotiation and cost are very priceless in decreasing and negotiating the economic money owed notably if the debt are beyond dues. You will have to without doubt get support from any enterprise or an company for debt cost negotiations.

Answer 10

welll there is only one way to get outta debt and that is to pay it off, you may need to take away from non essentials if you want to get it paid off quicker

best thing is to cut up the cards so you don't use them period you stated you don't use them anymore but if you do you pay that part right off then why bother using them???

if you are in a pinch like I said you may need to take way from non essentials like cell phones, cable, internet, stuff that yes it is nice to have but you don't NEED it

as far as saying someone is worthless from telling you not to spend to much reality check here that is exactly what you need to stop doing, I known everything is expensive now and it sucks but that's life