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01-03-2008, 10:38 AM | #1 |
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Credit Card Debt/Problems paying bills
Has anyone dealt with this? How? Any advice you can give me? I am usually great about these things, but it seems like this last year, I just keep falling behind. In jobs, money, I was even late on a credit card payment!! Now, instead of the 20 minimum payment, I am at 300 minimum payment. I am not sure what to do here. I am focusing on my credit cards because they are not the same every month and can eventually go away
I have three cards right now, Sears, Amex, MC. I was thinking of putting the sears balance on the Amex because that is the lowest interest of all the cards. I only pay about 30 bucks a month on the sears, though. Not sure if it is worth it. Any advice, pointers would be faboo. Thanks. |
01-03-2008, 10:41 AM | #2 |
Why, you're a regular Alfred E Einstein, ain't ya?
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You could try a credit card counseling company, but do research to make sure they are on the up and up. They can't always help, but if they can you can roll it into one monthly payment with lowered interest; the company works out a deal with your creditors. The creditors would rather have some of your money than none of your money, which is why they will work with the credit counselors as a preventative measure against bankruptcy.
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01-03-2008, 10:45 AM | #3 |
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Anything to reduce the interest is worth it. What you need to be doing is aiming for more than the minimum payment and stop spending. Obviously. (sorry) It's hard to give specific, non-trite advice without knowing the specifics. And I have to admit to never having been in that position. 300 minimum is a heck of a lot, though. If you're honest with yourself, can you recover from this situation with careful planning, or is continuing to pay the minimum just putting off the inevitable? Can you sit down with your banker, arrange a lower-interest loan to consolidate all these debts and work out a plan where you can actually pay it off and pay your current living costs without running up new debts? Or will this just trash what remaining credit record you have?
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01-03-2008, 10:45 AM | #4 |
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Shawnee - I looked into that today and got some info from the FTC about it. There is a company that seems legit, but I was hoping to be able to do it on my own because my luck, I would get a shady company.
I know I need to stop spending, but when you are left with .71 cents in the bank account and need to go to work, but have no gas, what to do? Maybe I can contact the credit card I am in good standing with and see if they can lower the monthly payment. I know if I ask the other card, it won't happen because i was late just a couple months ago. I was also thinking of getting the equity on my car to help. It will only make a small dent, but it should lower the monthly payments of the big interest card and also re-finance the car loan to a lower monthly payment. I am waiting to get information from them on this. Just to give an idea - here is my total debt - 31853.67 as of this second. |
01-03-2008, 10:57 AM | #5 | |
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Quote:
I think you really need to find a program to help you consolidate, negotiate with your creditors and work out a manageable plan.
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01-03-2008, 10:59 AM | #6 |
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Actually, that is just the credit card total amounts. No other bills are included
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01-03-2008, 03:51 PM | #7 | |
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Quote:
How about you change the car? if the"equity" is enough to make a refi worth while, it's surely enough to buy a runaround for which you won't need to make payments. this will likely reduce your motor insurance premiums too.
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The most difficult thing is the decision to act, the rest is merely tenacity Amelia Earhart |
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01-03-2008, 10:52 AM | #8 |
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We did a debt management program, and though it took 5 yrs, it really felt good when the last payment was made. We mananged to buy a car during this time, so apparently it doesn't trash your credit THAT badly. Just make sure that you can get interest rate reductions. One of our creditors wouldn't reduce interest. 5 yrs was certainly better than the 30-40 yrs they say you would pay for when paying only minimum payments!
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01-03-2008, 10:58 AM | #9 |
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binky - 5 years, I can take. Do you remember the company you used?
Thanks |
01-03-2008, 11:04 AM | #10 |
I hear them call the tide
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So not the total debt. You're already winning on the first step -being honest with yourself about the depth of the problem, and the second -seeking help. Keep up this momentum and you'll be fine. But do find a program, contact your creditors and seek to reduce your debt/interest to a level you can realistically pay off. And stop spending.
Good Luck.
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The most difficult thing is the decision to act, the rest is merely tenacity Amelia Earhart |
01-03-2008, 11:07 AM | #11 |
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01-03-2008, 11:30 AM | #12 |
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1) You can try a credit counseling service. The best is a non-profit one, like the ones the YMCA (YWCA?) has. They will counsel you for free, and then if you sign up with them, they take a small percentage.
2) alternatively, you can do it yourself, using a financial plan found in books. One to try is Dave Ramsey. His scheme is kind of the opposite of most people's, in terms of which credit card to pay off, but I like the entire plan he has. One caveat--he's very "Christian" -- but I manage to ignore that. If you don't want to go with him, go pick out a book by another financial guru. Just pick one plan and stick with it.
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08-05-2008, 05:53 PM | #13 | |
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I went through his book 4 times, and I agree with him being overly Christian/Preachy, but I too can look past it because his advice is very sound, intelligent, and practical. It simply works. I like it because he is very clear about everything. He doesn't leave you wondering. There's nothing vague. He states step-by-step exactly how to get out of debt and to become financially independent. I've started listening to his podcasts and I enjoy them. It's a shame he's on the same station as idiots like Michael Savage or Sean Hannity.
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01-03-2008, 11:41 AM | #14 |
all hollowed out
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www.profina.org. And if times get tight you can shift a payment date or even skip one if you call the creditors yourself
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01-03-2008, 12:05 PM | #15 |
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Thanks, binky. I have actually done that with a couple of bills this month. They were really nice because I am only going to be only 2 days late for either payment
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