i know that it's bad to have debt and stuff, but how bad a thing is it to have like $6,000 charged on credit cards (that is the total after you add the balances on my two cards)? even if i'll be able to have them paid off completely in a period of about 6 months....???
2007-11-15 14:08:39 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
We assist companies with profitability, and yes small business owners finance their endeavors via credit cards. We suggest calling the credit card company and asking to talk to a supervisor. Tell them your situation. Then ask if they can consolidate your c/c debt on one card at a low interest rate since you are planning on paying it off as soon as possible. Explain that you cannot get ahead with interest rates in double digits. They will then usually provide the best offer they can. If you have any "perks" with your card then cancel them. i.e. Rewards etc. This will lower your APR with the supervisor.
2007-11-15 14:25:30 · answer #1 · answered by eclipsecorpdev 1 · 0⤊ 0⤋
Your total credit balance is weighed against your total income. This is referred to as 'credit to income ratio'.
If you owe more than 65% of your gross monthly income in monthly payments, you are dangerously close to a financial disaster.
If it is as you claim, that you can have the credit card balance 'paid off completely in a period of 6 months', then do it.
If you have that much expendable income, look into making deposits into a savings account that pays you high interest every month.
It sure is a lot better than paying the credit card companies high interest every month.
Remember, 'stuff' that you buy today depreciates in value. Your savings account will go along way to buy that home that will appreciate in value and will serve you much better than 'stuff'.
Check out the link below so you can get a better idea about what I mean.
2007-11-15 22:34:34 · answer #2 · answered by Anonymous · 0⤊ 0⤋
That's still a lot to have for credit card debt. You say that you'll have them completely paid in 6 months (which is great), but you never know what might happen between now and then that would prevent that.....loss of job, all kinds of catasrophes can happen. Get them paid off ASAP and don't run them up that high again.
2007-11-15 22:19:09 · answer #3 · answered by First Lady 7 · 0⤊ 0⤋
How high is the limit on the cards. If your limit is $7000 you are very close to the limit and this shows will be a negative on your credit report. If you have a total credit limit of $40,000 then $6000 is a much smaller percentage and won't look as bad to the credit bureaus. It doesn't matter as much when you pay it off as if you pay your bills on time every month.
2007-11-15 23:27:42 · answer #4 · answered by cashew 3 · 0⤊ 0⤋