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XOXO
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Re: Info on how to pay off credit card debt? (long)
I don't know if this is an option for you but. DH and I are moving to cut our expenses, we'll save $600/month on rent. Half of that will go to my student loans which come back into repayment in Jan and the rest we'll use to attack our debt. Thankfully between the two of us we only owe less than 4K.
If you take a loan out is it possible to go through a credit union? They usually have lower rates. The 401k withdrawl is a double edged sword bc you'll lose potential returns over time, but it could really lower debt right now. You and DH need to discuss if it's worth it to withdraw the money. Remember you'll be penalized if you do.
For a period of 9 months we got rid of our cable to cut back during wedding planning. It wasn't much but the $70/month did help. It was tough but we were both in school and you'll be surprised the other things you'll do when you only have basic channels.
If you take a loan out is it possible to go through a credit union? They usually have lower rates. The 401k withdrawl is a double edged sword bc you'll lose potential returns over time, but it could really lower debt right now. You and DH need to discuss if it's worth it to withdraw the money. Remember you'll be penalized if you do.
For a period of 9 months we got rid of our cable to cut back during wedding planning. It wasn't much but the $70/month did help. It was tough but we were both in school and you'll be surprised the other things you'll do when you only have basic channels.
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Re: Info on how to pay off credit card debt? (long)
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Re: Info on how to pay off credit card debt? (long)
We sold our cars and bus it to work and school, we got our of debt though. We were 28K in debt![]()
after 4 years of living like homeless people we are all paid off and have a down payment for our house. we will never be in debt again. I waited tables at night, and we went many holidays with no gift giving. We also moved in with my family. We cut up all our cards to start with, called up the companies to try and negotiate a lower rate, then started with the lowest balanced card and paid that off and so on, until we only had the final one left.
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Re: Info on how to pay off credit card debt? (long)
two thoughts:
1. Debt consolidation: like AmeriDebt-they contact all your companies and lower the interest rate (they have deals already in place with thier company)-and then you pay them one monthly payment and the disperse it to your creditors...your creditors call them instead of you, and it helps restore your credit...I used to work for them like 5 years ago...I don't know if the policy has changed, but what I remember is that you have to cancel your cards, but you don't pay them anything. worth a shot.....
2. if it's all credit card debt...and if it's all in your name....what about filing for a chapter 7, it's only personal debt (not the house or anything).....it won't get rid of a student loan, but it will get rid of credit card debt. Pitfalls are: no credit cards for like 5 years. Might be worth looking into.....
GOOD LUCK!!!!!
1. Debt consolidation: like AmeriDebt-they contact all your companies and lower the interest rate (they have deals already in place with thier company)-and then you pay them one monthly payment and the disperse it to your creditors...your creditors call them instead of you, and it helps restore your credit...I used to work for them like 5 years ago...I don't know if the policy has changed, but what I remember is that you have to cancel your cards, but you don't pay them anything. worth a shot.....
2. if it's all credit card debt...and if it's all in your name....what about filing for a chapter 7, it's only personal debt (not the house or anything).....it won't get rid of a student loan, but it will get rid of credit card debt. Pitfalls are: no credit cards for like 5 years. Might be worth looking into.....
GOOD LUCK!!!!!
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Re: Info on how to pay off credit card debt? (long)
Posted by bluegrl24ny
Thanks for that. Unfortunately, moving is not an option for us at this point. We've been in our house over two years now, we don't plan on moving anytime soon. That's just one more expense anyway!![]()
I didn't think of the credit unions - I'll try and look into that. I have a few friends and my sister also are paid through credit unions, but they are teachers, or have government jobs. can anyone apply, or does it depend on your occupation? Thanks again!!
I don't know much about this but is it possible to refinance or get a line of credit from equity in your house? If the interest rate is less than what you owe on your credit cards it might be an option. Not really sure how this works.
As for credit unions, each one has rules on who can join. Usually if you have an immediate family member who is a member you can join. Ask your sister.
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Re: Info on how to pay off credit card debt? (long)
Is there someone you can borrow money from to pay off the credit cards? If not, I would try to transfer these balances to a 0% credit cards, so you wont be paying any interest for at least a year. Good luck.
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Re: Info on how to pay off credit card debt? (long)
Everyone gave such great advice. Nothing additional to offer except![]()
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's. I'm right there with you girlfriend and there are DAYS where I just stare at the wall and think about how $crewed we really are![]()
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Re: Info on how to pay off credit card debt? (long)
I too suggest talking with a credit counselor. Also consider talking to your credit cards, too. See if you can get your rates lowered or transfer the balance of one higher rate card to a lower one.
You have re-budget... the only way to get rid of this is to pay more than the minimum every month. It will take time, but it's worth it to preserve or improve your credit history.
Bankruptcy will stay on your report for 10+ years and will affect all future financial decisions, i.e., mortgage, car loans, etc.
You have re-budget... the only way to get rid of this is to pay more than the minimum every month. It will take time, but it's worth it to preserve or improve your credit history.
Bankruptcy will stay on your report for 10+ years and will affect all future financial decisions, i.e., mortgage, car loans, etc.
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Re: Info on how to pay off credit card debt? (long)
I hear you girl- we have 10k worth...
It just happens
This is left over from when we were laid off and the unemployment checks weren't enough.
I was able to get my balance onto one card- with a 3.9% interest rate for as long as I need to pay off the debt.
Maybe you can do something like that- see what CC have in terms of balance transfer offers.. then try to close some of those cards- you don't need all of them.
I try to keep at least 1 CC free of debt and pay it off every month.
It just happens
This is left over from when we were laid off and the unemployment checks weren't enough.
I was able to get my balance onto one card- with a 3.9% interest rate for as long as I need to pay off the debt.
Maybe you can do something like that- see what CC have in terms of balance transfer offers.. then try to close some of those cards- you don't need all of them.
I try to keep at least 1 CC free of debt and pay it off every month.
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Re: Info on how to pay off credit card debt? (long)
cut them up!
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Re: Info on how to pay off credit card debt? (long)
alot of us fall into this group...
my experience with lending tree in 2 different ocassions is that banks dont gernerally offer personal loans for debt condsilation (sp)
i would try to shuffle your cards to make the card with the lowest rate carry the most balance and start to payoff the card with the highest rate first. leave student loans to last since it's generally a low low rate..get a forbance and apply that moneies to credit card.. make a payment plan.
good luck...(i should be telling myself this info)
my experience with lending tree in 2 different ocassions is that banks dont gernerally offer personal loans for debt condsilation (sp)
i would try to shuffle your cards to make the card with the lowest rate carry the most balance and start to payoff the card with the highest rate first. leave student loans to last since it's generally a low low rate..get a forbance and apply that moneies to credit card.. make a payment plan.
good luck...(i should be telling myself this info)
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Re: Info on how to pay off credit card debt? (long)
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Re: Info on how to pay off credit card debt? (long)
Just a word of warning about AmeriDebt, etc.:
my stepmom works in the collections business and she said the first thing you should do is call the cc companies yourself and try to negotiate with them, tell them you need the rate lowered, etc. because the Ameridebt-type companies get a percentage of what you are paying.
Meaning, they negotiate for 75% of your balance to be paid off, saving you 25%. But they really negotiated to get you 50% and they keep the other 25%.
Can you take a loan out on your 401k? Usually that rate will be lower than what you can get at a bank and the interest goes back into YOUR account!
my stepmom works in the collections business and she said the first thing you should do is call the cc companies yourself and try to negotiate with them, tell them you need the rate lowered, etc. because the Ameridebt-type companies get a percentage of what you are paying.
Meaning, they negotiate for 75% of your balance to be paid off, saving you 25%. But they really negotiated to get you 50% and they keep the other 25%.
Can you take a loan out on your 401k? Usually that rate will be lower than what you can get at a bank and the interest goes back into YOUR account!
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Re: Info on how to pay off credit card debt? (long)
I remember reading an article about a woman who was deep in debt who called all her creditors and said she'd go bankrupt if they didn't lower her rates. I believe that if a person declares bankruptcy the CCs get nothing so they have some incentive to want to help you stay afloat.
I borrowed a few years ago from my 403b (similar to a 401k) and though you might not be able to borrow the whole amount, it might help make a dent. The only glitch might be that your check will be less as long as you're paying it back.
Good luck to you.
I borrowed a few years ago from my 403b (similar to a 401k) and though you might not be able to borrow the whole amount, it might help make a dent. The only glitch might be that your check will be less as long as you're paying it back.
Good luck to you.
