(Closed) Credit Card Debt

posted 9 years ago in Money
Post # 3
Member
7431 posts
Busy Beekeeper
  • Wedding: October 2009

Don’t use the cards at all, pay at least double or triple the minimum payment – more if you can afford it.  Before you know it, you’ll start to see the balance shrink, and so will your minimum payment.  It will feel great once you get the ball rolling

Post # 4
Member
349 posts
Helper bee
  • Wedding: September 2009

As someone who’s been in serious credit card debt in college, and successfully got out of it (albeit with a much lower credit score), I’ll give you some tips:

1. Call your credit card companies and try to make arrangements to pay before they charge-off your account, meaning, it goes to collections. The CC company would rather work directly with you rather than sending it to a collections agency. Explain that you intend to pay the balance in full, but this is what you can do right now.

2. If you’re already in collections, read your rights with debt collectors (they can get pushy and annoying and down right rude sometimes, which is way over-stepping their boundaries. This is a good site to reference:

http://www.privacyrights.org/fs/fs27-debtcoll.htm

3. Consider a reputable debt solutions company if you’re in collections. That’s what I ended up having to do. I went with AFS (I extensively researched these companies, and found great referrals and reviews for this company). They negotiated with my creditors, lowered my balances and put me on a very reasonable payment plan. I was debt-free in a year and a half. My credit score was shot already, so for me, this was my best option.

After you get out of debt, cut up any credit cards you really don’t need. For me, it was all my department store cards, and things like VS. Have one major CC with a good rate for emergencies, and to build your score back up. It’s been about five years since I was in collections, and my credit score is now just about average. It’ll take time, but make the right credit choices, and you’ll be on your way!

Post # 5
Member
1573 posts
Bumble bee
  • Wedding: August 2009

stop spending, live within your means

 

i think we’ve been spoiled by ready credit

 

just my two cents worth

Post # 6
Member
908 posts
Busy bee
  • Wedding: June 2009

Cut up the credit cards and start paying as much as possible off them every month.  Here are some numbers:

If you have $10000 in CC debt with 23% interest and you pay $200/month, it will take you almost 14 years to pay it off and you will have paid more than $23000 in interest!!!  That means that everything you purchased that is still sitting on that bill actually cost you 3.5x the amount you thought you were paying!!

Go to this website, or one like it and play with the numbers, set a payoff date and STICK with it!!!!

http://www.bankrate.com/calculators/credit-cards/credit-card-payoff-calculator.aspx

Good luck!

Post # 7
Member
2007 posts
Buzzing bee
  • Wedding: September 2009

Definitely quit using them first off.  If you need to have an in case of emergency card but have a hard time not using it, try this:  Put the card in a glass of water and then freeze it.  That way you’ll still have it if needed but it’s enough of a pain to get to it you’ll be less likely to use it.   

Then there are two ways that I’ve heard to go about paying them off if you have more than one. 

Either you can pay them all down as you go or you can figure out which one is the most costly, usually the one with the highest interest rate, and pay it off first.  (Pay the minimum payment towards all the others and then put every single extra penny towards the costly one.  Once that one’s payed off move on to the next one.  Doing it that was can be helpful because you’ll see progress sooner which is SO motivating.) 

Also, set a strict budget for yourself and stick to it.  Every extra bit goes towards paying down debt.  It sucks but if you stick with it, it’s very much worth it. 

Good luck!

 

Post # 8
Member
2022 posts
Buzzing bee

I think different things work for different people.  Without knowing your situation, it is hard to give specific advice, though the above advice is all good.  Generally, you have to STOP using the cards, period.  Second, try this:

http://cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp’ defer=’defer

It’s a debt calculator.  It adds up your debt and will help you set a goal – ie, payoff date or how much you want to pay monthly.  Set it the calculator, copy it, and save it on your computer, and check off each time you make a payment.

Another good thing to do is to call your credit card companies and ask them to lower your APR.  That way you pay less finance changes each month and can pay off your debt faster.  You are much better off paying off the cards with higher interest rates than ones with lower interest rates. 

Post # 9
Member
5993 posts
Bee Keeper
  • Wedding: May 2010

at one point i had about $28K in credit card debt – managable on my salary but still STUPID, especially when you see the interest i was paying per month

i rolled my cards over into a low interest rate bank loan and paid them off within a year and when possible i paid more than the min to keep chipping away at it. (ie my yearly bonus took a nice chunk off the balance).  i also stopped using the cards unless absoultely necessary – cut them up if you have to is my advise

i still have credit cards but i pay the balance off each month but what ive noticed is im being innundated even more by credit card companies to spend and increase my limit (i already have about $150K in limit)

 

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