How do I go about eliminating my credit card debt?
I am 23 with a nine-month-old son, and I owe (on top of my student loans from college) approximately $30,000 in credit card debt. I am looking to do a debt management/consolidation program, but was wondering if I should just contact those credit card companies that say to call them if I have “financial difficulties” instead? Also, which debt consolidation programs would you refer, if any? Thank you!
Larry
Comments
Comment from DAVEG_10
Time November 19, 2009 at 12:52 am
First: Consolidation loan might be the road to go.
Rates are cheaper vs those crazy credit card companies and there blood sucking interest rates.
Comment from tod_gakk
Time November 19, 2009 at 7:09 pm
If somebody mentions that “affiliatetier” site I am going to freak out. I am tired of those bozos promoting that garbage.
Comment from Starla_C
Time November 23, 2009 at 9:36 am
Debt consolidation loan might be the best way to go. If you can’t come up with an affordable plan you can manage, you may consider filing Chapter 13 bankruptcy to reorganize your debt, have protection through the court and still be allowed reasonable payments to re-pay the debt you owe.
Good luck!
Comment from Bluealt
Time November 24, 2009 at 7:45 pm
Stop using your credit cards immediately. Cut them up & throw them out.
Try a bill consolidation company. They’ll contact your creditors for you.
If you go it alone, keep paying as much as you can on each bill. At least the minimum payments.
Get a second job & use all of that paycheck to pay on one of your bills. Pay as much as you can on the smallest balance credit card until it’s paid off. Then when it’s paid off, take that payment plus whatever you’re paying on the next smallest card & keep paying that one off. It’s a snowball effect. Keep paying.
Take on a frugal lifestyle until your credit card debt is paid off.
You’ll feel 1000% better.
Comment from cyanne2ak
Time November 25, 2009 at 6:36 am
First of all, go to a bank and consolidate your credit cards into ONE. Then, cut them all up, including the one you consolidated to. Pay no less than TWICE the minimum payment each month.
Comment from cope_acetic@yahoo.com
Time November 26, 2009 at 6:28 am
Cut the cards up. Then get a loan to pay for all of it at a lower interest rate. Then get a second job to pay the loan, and kick yourself every payday for getting so deeply into credit debt!
Comment from really????
Time November 27, 2009 at 11:46 pm
None. Try this, cut up your credit cards, all but one. That one get a bowl of water and freeze it in the freezer. This will end that spur of the moment spending.
2. get out all of your debts, put them in order the smallest to largest. Right it down on a sheet of paper in that order.
3. after you initial payments, start with the smallest first, pay $10 extra to the principal.
4. once you get that one paid in full go to the next one. put the amount you would have paid to the smallest and the extra $10 to the principal until it’s paid off.
5. continue this process until all your debts are paid in full.
If you go to a debt cancellation company, they take a percentage for a fee and you are taking out a loan to these companies. Also you get a lower credit score claiming you are a risk factor. So do it yourself.
Comment from Dwight D J
Time November 29, 2009 at 7:01 am
Most debt-consolidation companies are for-profit. That should tell you who they really want to help. (Someone has to pay for those radio ads!!) ASk your local United Way to refer you to a non-profit credit counselor, they’ll work with you. They’ve helped many people, including me.
Comment from krusty_blue_spaz
Time December 1, 2009 at 1:25 pm
you could try payment`s,that would be the best way
Comment from Rusty Nails
Time December 3, 2009 at 8:17 pm
Hi Chris
you can’t borrow your way out of debt ..Write down all your debt everything..
Those so called consolidation companies are losing their non profit status with the government..
I don’t think student loans can be part of this anymore ,,but take all your debt information to a lawyer and declare bankruptcy..Get out your mess and forget about it ..
Start a new and spend only the money you earn..
Comment from Notorious
Time December 4, 2009 at 7:37 am
I was going to answer your question politely and helpfully and then I saw your age and the amount of debt and then I just could not believe it. It is people like you who lack the moral fiber and sense of responsibility who make it so hard for the rest of us. No wonder Credit Card companies get off with those outrageous rates and penalties.
How the hell do you accumulate that kind of debt while going to school? I would like to think that you used the cards for books, lodging and food but I bet that I know better.
No matter what you do, you are going have this monkey around your neck for a lifetime. Are you aware that some employers look into your credit habits to determine worthiness and character?
Comment from CactusFlower
Time December 5, 2009 at 3:30 am
I’d do a lot of research before you enter into a contract with a CCCS because while it might get the bills paid – it will not protect your credit score or rating any better than dealing with it yourself. You don’t state what your income is and if buckling down and paying more each month on your cards would get it paid off. I had $40k of debt, $30k being CC debt and drowning in it having been through a messy, expensive divorce. When my attorney did the calculations, he figured it would have taken me 40 years to pay off the $30k of CC debt at the rate I was going.
So I wound up filing a Chapter 7 BK and it wiped out 100% of the CC debt legally in about 3-4 month’s time (from the date of filing until discharge date).
The other $10k was a car loan, which I continued to pay on ‘as agreed’, did NOT reaffirm the loan, and they did not come and take my car. I paid it off back in April and now it has a clean title.
No ~~~BK is not for everyone, but it sounds like you have a lot of debt and a little one to take care and his future to think of. And while going through a BK will trash your credit/score, it’s no more so than muddling through years of dealing with collection agencies, some CCCS that will likely “fail” you.. and creditors that will STILL report you even those you are in a payment plan. Or you can wipe out the debt legally through a chapter 7, start fresh and be able to SLEEP at night.
You can get a free consult with most any BK lawyer and he or she will go over all of your debts, your income and help you decide the best course of action.
I have BEEN THERE and done it and this is not an “ad” for anything,but a testimonial. While it wasn’t something I really wanted to do .. BK was the best solution for me during a really tough time in my life. I am not sorry I did it.
Hope this helps. Ignore the jerks that can’t even give sensible or helpful answers and just bash you. It’s clear they’ve never walked in your shoes.
Comment from jan d
Time December 6, 2009 at 2:27 am
Three Suggestions 1) Consolidate your debts 2) File bankruptcy (bankruptcy is not advised for all cases) 3) Contact a credit counselor:
Ways to Consolidate Debt
How to Avoid Bankruptcy Explained
Credit Counseling Programs
Comment from Molpatrol
Time November 18, 2009 at 10:45 am
stop using credit cards!!!!