2007-10-18 07:59:16 · 10 answers · asked by bluewavesguy44 2 in Business & Finance ➔ Personal Finance
If you're not behind on any of the cards, then pay the minimum balance on every one, except the one with the lowest balance. On that one, send as much as you can towards this account, every month. You want to be sending 5 or 10 times the minimum payment, or more if possible. When that card is paid off, ask the issuer IN WRITING to cancel and close the account, and to notify the credit monitoring companies that the account is paid in full, and closed. Then repeat this all over, with the next account with the lowest balance.
If you have accounts that are overdue, contact the ones that are overdue IN WRITING and tell them you want to pay it off in full, and ask if they can waive any penalties, etc, and keep the interest rate at the original level. Then pay the minimum on all the accounts, and pay all the extra towards the overdue account with the lowest balance again. Keep paying off the account with the lowest balance until the overdue ones are all paid up, then go to the ones that are not overdue. Cancel each account when they are paid off, and remember to request IN WRITING that they close the account, and notify the credit monitoring agencies that it's paid in full.
It's very important that you make these contacts and requests in writing. They are required to respond to those. Phone requests and e-mail messages don't cut it here - you have to put it down on paper.
To make these bigger payments, you may have to give up on some things in your life. Carry your lunch to work instead of going out to lunch. Stop buying lottery tickets. Give up on the $4 cups of coffee, stop partying at the bar with your friends, give up smoking. AND STOP CHARGING STUFF TO THE CREDIT CARDS. IF YOU CAN'T PAY CASH OR WRITE A CHECK, DO WITHOUT.
If you can, think hard about getting a 2nd job to pay these off, or you may be working on it for 4-5 years.
2007-10-18 08:18:28 · answer #1 · answered by Ralfcoder 7 · 0⤊ 1⤋
A debt consolidation loan is usually best, provided you don't make the same mistakes all over again. Most people are back in the same position after 5 years have passed. Be sure to know what specifically caused the debt in the first place and cure that, too. Cut up all credit cards with the exception of the one that has the lowest interest rate. Don't charge more than you can pay off in one month. Get an equity loan, if you have a house, or a personal line of credit if you don't own property. Use it to pay off the debt.
Sometimes a debt counselor can help. There are free services in most major metro areas. If none of these options is available to you, just keep on paying as much as you can afford on each card. BUT, cut up the cards and don't use them again.
2007-10-18 16:08:22 · answer #2 · answered by Cheryl G 7 · 0⤊ 0⤋
STOP SPENDING MONEY ON THE CREDIT CARD!!!!!
Then refer to www.daveramsey.com
Find a financial counselor near you from that website. Do not go to a financial advisor that is trying to sell you something. The Financial Peace University Counselors will be able to help you the most.
2007-10-18 16:16:32 · answer #3 · answered by Clown 3 · 0⤊ 0⤋
Put all extra funds to pay them down/off. If you have large balances and own a home, a home equity line of credit is good because it's usually cheaper and is tax deductable.
2007-10-18 15:03:19 · answer #4 · answered by JoJo 3 · 0⤊ 0⤋
you can try contacting the creditors to see if thye wil allow you to pay it off at a 20'30 percent discounted price and if they wonr do that try making 2 payments a month pays it off quicker...IDK just a thought
2007-10-18 15:07:47 · answer #5 · answered by TaTa 2 · 0⤊ 0⤋
i had a huge debt problem that got out of control about a year ago.
i saw an oprah show about debt and how to get rid of it.
i followed the steps and it really does work!
http://www.oprah.com/money/debtdiet/steps/debtdiet_steps_main.jhtml
2007-10-18 17:55:14 · answer #6 · answered by sprikles_777 2 · 0⤊ 0⤋
Use the debt snowball. Forget "interest charges" just concentrate on making all of this go away.
2007-10-18 15:02:34 · answer #7 · answered by Anonymous · 1⤊ 1⤋
What kind of question is that? Just pay it off, as much as possible as soon as possible!
If you're asking how do you get the money to pay it back , I can't help you.
2007-10-18 16:06:17 · answer #8 · answered by Smartass 4 · 0⤊ 1⤋
Pay more then the min. call and ask them if they could lower your rate b/c you are a long time client and always make your payment on time. It really works!!
2007-10-18 15:04:10 · answer #9 · answered by ?? 2 · 0⤊ 1⤋
Pay you entire balance when due.
2007-10-19 20:27:32 · answer #10 · answered by Gary 5 · 0⤊ 0⤋