Debt consolidation info
I got lots of FM so I figured I would posit it here. My first attempt didn't work so here goes again.
Gather all your Credit card bills/debt. All debt is not bad. School loans for one are good debt and are usually at low rates and should be left alone! (Paying them off ontime help your credit)
Once you know how much you owe and to who you need to figure out what rate you are paying on each card and how much open credit line on each card you have. Now call each company and see what they will lower the rate to. Yes, they will do this. Make a big stink. tell them you have a better rate on a major competitors card (i.e. citibank vs. amex) and that you will close your account or transfer the balance elsewhere if they won't lower it. 95% of the time they will drop it considerably.
Now if you have a card with NO balance call and see what the lowest balance transfer rate is (even if there is a fee, you may be better off in the long run) Your ideal would be a transfer for the life of loan or until balances are paid in full. Anything under 12 months depending on the amount you owe could be a waste. If there is a fee ask if they will wave it. Tell them you got an offer from a competitor that has no fee but you prefer to use there card. Ask to speak to a manager if you have to. Sometimes they will wave the fee!!!
Transfer as much to this card as possible.
If you get an offer for a new card with a very low or even 0% open the card and transfer what you can. Hopefully it will be for life of loan. Lots of companies are doing this to acquire new accounts. Once you transfer a balance to it put it in a draw and DON'T use it.
After you lower rates or consolidate figure out what you can afford to pay each month. Try and pay more than the minimum each month. Once the offers expire (if they are not till it is paid off) it will go to your standard APR which will be at least 19.99% So be prepared to make some more transfers if you need to.
Do not transfer balances to cards with balances or make purchases with a card you trasfered a balance to. Here is why. You ALWAYS pay the balance with the lower rate off first. So if you had a balance it will most likely have a higher rate and your purchased will have a higher rate so those amounts sit behind the amount you transferred accruing higher interest charges. Which defeats the purpose of what you are trying to do.
If you can't consolidate or lower your rates use a company that aids in this. NEVER claim bankruptcy and never miss payments. These things show for 7 years on your credit report!!!
I know this is a lot an it is confusing.
I hopt this helps.
Gather all your Credit card bills/debt. All debt is not bad. School loans for one are good debt and are usually at low rates and should be left alone! (Paying them off ontime help your credit)
Once you know how much you owe and to who you need to figure out what rate you are paying on each card and how much open credit line on each card you have. Now call each company and see what they will lower the rate to. Yes, they will do this. Make a big stink. tell them you have a better rate on a major competitors card (i.e. citibank vs. amex) and that you will close your account or transfer the balance elsewhere if they won't lower it. 95% of the time they will drop it considerably.
Now if you have a card with NO balance call and see what the lowest balance transfer rate is (even if there is a fee, you may be better off in the long run) Your ideal would be a transfer for the life of loan or until balances are paid in full. Anything under 12 months depending on the amount you owe could be a waste. If there is a fee ask if they will wave it. Tell them you got an offer from a competitor that has no fee but you prefer to use there card. Ask to speak to a manager if you have to. Sometimes they will wave the fee!!!
Transfer as much to this card as possible.
If you get an offer for a new card with a very low or even 0% open the card and transfer what you can. Hopefully it will be for life of loan. Lots of companies are doing this to acquire new accounts. Once you transfer a balance to it put it in a draw and DON'T use it.
After you lower rates or consolidate figure out what you can afford to pay each month. Try and pay more than the minimum each month. Once the offers expire (if they are not till it is paid off) it will go to your standard APR which will be at least 19.99% So be prepared to make some more transfers if you need to.
Do not transfer balances to cards with balances or make purchases with a card you trasfered a balance to. Here is why. You ALWAYS pay the balance with the lower rate off first. So if you had a balance it will most likely have a higher rate and your purchased will have a higher rate so those amounts sit behind the amount you transferred accruing higher interest charges. Which defeats the purpose of what you are trying to do.
If you can't consolidate or lower your rates use a company that aids in this. NEVER claim bankruptcy and never miss payments. These things show for 7 years on your credit report!!!
I know this is a lot an it is confusing.
I hopt this helps.
