i am trying to get out of debt, i have cut up all the cards any tips for getting out of debt? i have about 10,000
2007-12-31 16:40:18 · 9 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
No, you must pay off the balances to close them
2007-12-31 16:43:36 · answer #1 · answered by lowtop 1 · 0⤊ 0⤋
You can close them, but you don't want to.
Those cards establish your credit history and if you close them, you are not establishing long term history.
I have an excellent credit score, and have a bunch of credit cards that I have paid off and not charged anything on for quite some time. I leave them active to establish my responsible credit history.
Cut up the cards, don't charge anymore, hang on to your resolve to get out of debt.
2008-01-01 01:53:52 · answer #2 · answered by godged 7 · 0⤊ 0⤋
You can close the accounts. The interest will continue to accrue on the balances until they are paid off. The best way to get rid of the debt is to make a commitment to paying it off, and give yourself a timetable. Generally, mathematically speaking, if you pay twice the minimum payment on every single card you have every single month, they will all be paid off within three years. You can also transfer some or all of the balances to an interest-free credit card. Usually these cards offer free interest for 12 months, which buys you some free time to pay them down. Also, since you're paying the most interest on the card with the highest balance, pay that one off first, and then work on the one with the next smallest balance, and so on.
This debt calculator is very helpful as well.
http://cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp
2008-01-01 00:52:31 · answer #3 · answered by No Shortage 7 · 0⤊ 0⤋
It's not a wise idea to actually close your cards just because you don't want to use them. The fact that the companies are willing to extend you credit are a plus toward your fico score. Having extended credit and no debt is a good ratio. Closing your accounts puts nothing on your "good" side. Having debt, and paying on time is also a plus.
Increasing your income and paying off your cards is the best scenerio, however when that is not possible, you can shop around and find a card with low interest rates and transfer the balance there. Some have 0 interest for 6 months, and that will put 100% of your monthly payments directly toward the principal.
2008-01-01 00:52:07 · answer #4 · answered by Starrr ♥♥♥ 4 · 0⤊ 0⤋
Do your best my paying off your debt. Pay some on each card. If you have a few, you can put more money toward them.Good Luck.
2008-01-01 00:49:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋
To close these acc'ts, you must notify the companies in writing. Have them notify your credit beureus that "this acc't was closed by customer request". Continue making payments as usual and your credit rating will remain good.
2008-01-01 00:48:59 · answer #6 · answered by BusyBody 2 · 0⤊ 0⤋
YOU CAN ONLY CLOSE THE ACCOUNTS IF THEY OWE NO MONEY.
TRY TRANSFERING THE BALANCE
2008-01-01 00:47:22 · answer #7 · answered by Curtis R 4 · 0⤊ 0⤋
you don't want to close the accounts you want to call them and renegociate the interest so that you can pay them off quicker ... if you close them, you'll have no bargaining tool... you threaten to close them as a last resort ...
2008-01-01 00:44:44 · answer #8 · answered by Chelsea 5 · 0⤊ 0⤋
You can close them, but you'll still owe the balances plus interest.
2008-01-01 09:37:33 · answer #9 · answered by Anonymous · 0⤊ 0⤋