What are my options for taking care of 12,000 in credit card debt?

Question

I have 12,000 in credit card debt, no collateral for a loan, and a 599 credit score. I have no other bills and would be in great shape if I could pay these off. What are my options???

Answer 1

Try a credit counseling agency--one with a good rep--I used Debt Counseling Corp--they are great and i have refered many people to them who have had excellent results. My score is better then ever. They helped me with a budget and it is sooooo easy to maintain.

Check them out

http://www.DebtCounselingCorp.org

Answer 2

You have some good options that will raise your score and lower your debt.

You can pay the minimum balance on all but the one with the lowest balance which you pay off first. That will create one less outstanding debt to report and one less payment to make. The reduced number of minimum payments will provide greater flexibility.

You can pay the minimum balance on all loans but the one with highest rate, which you pay off first. That will lower your monthly minimum payment and save on interest costs.

The best approach is to try both methods. First pay off the card with the highest rate, but if more than one card has the same rate, then among those, choose the one with the lowest balance.

Another thing you can do is get a temporary part-time job to help pay off the loans faster. You might not want to keep it for the duration of paying off your credit card debit, but at least long enough to lower you debt into a more manageable range.

Another option is to refinance some of the debt either with a bank's no-collateral loan, one of your credit cards that offer the lowest rate and still more room on the credit limit, or another credit card offer that has a lower rate.

Answer 3

Starfish has the right idea about laddering your credit cards. However, I suggest you throw everything on the highest interest rate, while making minimum on the rest. Not accruing that extra interest will get you out of debt faster.

Also, when you get a card paid off, you may want to keep it open. Closing a credit card lowers you available credit limit which will increase your debt percentage. This will lower your score. Also, closing a card also closes the payment history.

You may want to close some of those cards eventually. I suggest you keep the two oldest major credit cards without an annual fee. Only keep store or gas charge card if you have some special reason.

Of course, once you get those cards paid off, only charge what you can afford to pay in full at the end of each month.

Answer 4

Honestly, you have one real option here. Even if you find credit counseling or some group to help, you are going to have to pay off the 12k. Perhaps look for a new job to allow you to place more money into the debt? Maybe do some work on the side? In either case, cut up that card now. Live off of cash until you can get that bill under control.

Answer 5

Starfishltd has the right idea. Make a bare-bones budget, and cut out all the extras, like going out for lunch, going to movies, playing the lottery, going out to the bar on weekends, etc. Make the minimum payment on all the cards, and stop using them. If you can't pay cash, do without. Otherwise, you're just digging yourself in deeper and deeper. Consider getting a 2nd job for the evenings or weekends. Every extra dime goes towards these debts. That means that you may be paying $500 over the minimum balance on these cards, if you can swing it. If you can pay $1000 over - DO IT!

And when you pay off a card, be sure to ask that the issuer cancel the account, and to report the fact that it's paid off to the credit reporting bureaus. This will boost your credit score in the process.

Answer 6

Well it sounds like you want to pay off the debt. Other options will impact your credit score -- negatively. However, debt settlement could help reduce the debt as well as reduce the impact to your score. The idea to create a budget is great and will help you keep out of new credit obligations. We have a free download for this on our website toolbox - under household Budget Tools.

Answer 7

well first youve gotta cut up your credit cards so you dont spend more and save money make sure to pay the cards on time! take out a loan to pay the cards off so you can have some hope of saving your credit score and with a loan youll have one payment a month not 4-5 good luck

Answer 8

Make a budget. Set aside money for necessities and put every other dime on the debt. When your lowest balance is paid, apply the money for that payment to your next lowest balance. You'll be debt-free in no time and on your way to establishing a firm financial future. For detailed advise, go to daveramsey.com.

Answer 9

mastercard debt isn't deductible for tax purposes. in case you have adequate fairness on your place, you are able to take out a HELOC and pay off the CC debt; then you definately artwork down the HELOC. HELOC pastime is tax-deductible. One considered necessary section is your self self-discipline. do not circulate back on your previous spending techniques. you may exchange your outlook and your way of existence to stay out of debt. maximum persons, while they commence making progression on repaying their debt, get this sense of "we are getting extra clever", then circulate out and spend to "celebrate", and "supply themselves a smash". nicely, those celebrations and breaks will somewhat smash you. do not deviate out of your objective of paying down debt. in case you somewhat wnat to be debt-unfastened, you may stay maximum comparatively cheap. Spend below you earn. do not splurge, no rely what the classified ads and infomercials say you deserve.

Answer 10

contact a consumer credit counseling agency.... then destroy your credit cards...