I have 16,000 in credit card debt. I cut up all of my cards. I make about 3500 a month and I'm trying to pay them off. I know I don't qualify for one of those assistance programs because they can only negotiate with your credit card company if your payments have rarely been late and mine have, especially this couple of months. I just feel like I'm going to have a panic attack. Is there no way out of this?
2007-10-21 05:27:53 · 5 answers · asked by LBCgal 1 in Business & Finance ➔ Credit
Transfer your credit card debt to to two 0% interest cards that'll get you off of having to pay high interest rate. Then one or two months in a row cut back all your costs except your most needed -- rent, food, etc. Be very minimal and cheap for two months and pay $2000 each month to bring the base down. Do this cycle every 6 months and you should have your debt off in a years time.
2007-10-21 08:38:19 · answer #1 · answered by Millionster 3 · 0⤊ 0⤋
Oh I have been there girl!! The stress of being in debt is overwhelming. Now, you can do this on your own!! Avoid the 'let us negotiate with your credit card companies' places. They can even get your credit worse than it already is. DO NOT comsolidate them all onto one (which I made the mistake of) ebcause then you will use the others that have zero balance. Take the one with the lowest balance and pound it out and get it paid off. Then take that payment and add it to the next balance. You can do it on yourown. You also need a budget and stick to it. It is hard at first, but worth it. I have been debt and credit card free for almost 3 years and I do not miss the stress. And I even now have a savings account. You can do it!!!
2007-10-21 05:36:11 · answer #2 · answered by twest_dgo 4 · 2⤊ 1⤋
Getting out of debt is challenging, but it can be accomplished with dedication and perseverance.
Step One Cut up your credit cards except for one or two to use for emergencies. Throw away the pieces.
Step Two Cancel all of your credit lines and request a lower interest rate on the debt you have left.
Step Three Transfer as much debt as possible to the credit card that has the lowest interest rate, or get a debt-consolidation loan from a bank at a lower rate.
Step Four Use cash for all your purchases, and only buy what you can afford.
Step Five Commit to start paying off your debts one at a time and do it. Pay off the credit card and loans with the highest interest rate first.
Step Six Double your payments on the next debt by taking the payment you made on the first debt and adding it to the current debt.
Step Seven Triple your payments on the next debt by combining payment amounts. Continue until all your credit cards and other debts are paid off.
Tips & Warnings
Invest in personal finance software to accurately track your spending and identify problematic habits.
If you have investments that are paying 6 to 10 percent but a credit card debt with an interest rate of 17 to 21 percent, cash out your investments and pay off your debt.
Ask your creditors how much repayment is needed before they are able to send a favorable report to credit agencies. Sometimes they will accept less than your total debt.
Use consumer credit agencies to arrange repayment of debt. Many are free.
2007-10-21 05:38:18 · answer #3 · answered by Anonymous · 1⤊ 1⤋
I think there are companies out there that can negotiate even if you don't pay on time at all. If not, I would suggest setting up a budget for yourself. Write down all your monthly income and all your expenses. Besides what you have to pay such as rent, car, electricity and so on set aside another fixed amount of money for groceries and such. Also plan on specifically putting aside money for each of your debts even if you can only do 2 or 3 a month, and if you have to only the minimum due. It will pay off eventually, it takes time and try to stick to your budget and don't stress too much about it.
2007-10-21 05:34:23 · answer #4 · answered by ♥Angel Eyez♥ 4 · 2⤊ 1⤋
Have you tried talking to your credit card companies yourself? Many times you can negotiate payments that you can afford and if you stick with them they will quit hounding you. It will take you forever to get this debt paid off due to high interest rates. If you can find a way to earn extra income or if you get a tax refund, apply more to your payments whenever you can.
2007-10-21 05:37:24 · answer #5 · answered by Diane M 7 · 0⤊ 1⤋