Rich C asked:
I have 50k in credit card debt with interest rates ranging from 7 to 27%. I don’t want to ruin my credit score (675-720) but I need to reduce my monthly payments. If I quit paying 1 card, I might as well quit paying all of them. What are my options?
http://1mortgagecalculator.info
I have 50k in credit card debt with interest rates ranging from 7 to 27%. I don’t want to ruin my credit score (675-720) but I need to reduce my monthly payments. If I quit paying 1 card, I might as well quit paying all of them. What are my options?
http://1mortgagecalculator.info
There really is no solution to this other than to start throwing more money at them. Downgrade your car if you can. Get rid of the cable tv. No more eating out or going to the movies. Get a second job a couple of nights per week. If you are renting move to a cheaper place. If you can get a roommate, get one.
I’ve heard that most major towns have a National Consumer Credit Councelling office.
You can look it up in the phone book or online.
If they charge more than $25/month it’s a scam – most people get this service for free from the government.
Also, there are a lot of books on debt reduction and negotiation at the library.
You can also try a bookstore.
They teach you how to lower interest rates, haggle with them, and negotiate.
Whatever you do, do not ever go with a debt negotiation/consolidation service.
You will regret it for years to come.
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No, you need to cut back your spending and lifestyle. and increase your income.
If you were a client of mine I would first ask you to rank your debts from the smallest to the largest. Your mission, should you decide to accept it, is to make the minimum payments on each. The big exception would be the debt that is the smallest. Make maximum payments on that. Pay it off.
While you are paying on it, tape one of the last bills from that company to your bathroom mirror. Use a felt tip pen and keep track of how much is paid each week, each fortnight, or each month until it is totally paid.
Once paid, tape that well-marked bill to your bedroom mirror. The first thing you can see when you awaken, and the last thing you see when you retire, is that paid-off bill. Continue in the same manner with each bill. EVERY bill that is paid off is to have the zero balance statement next to the well-marked bill.
Once all bills are paid off, you will have a mirror full of your successes.
Success breeds success.
Use a debit card as sparingly as practical. People spend more, even on fast food, when they use plastic.
Carry only one dollar bills. A hundred of them is all right. Nothing larger than ones. When you are about to buy something, take out the stack of ones. While you are counting out the ones, you are providing yourself time to contemplate if spending your cash on that item is really a responsible move.
I would go with Judy’s advice. It is very possible that you can negotiate for a lower interest rate. Credit card companies want to be paid; if you default they lose and you lose. That is why negotiation always remains an option.
With that amount of debt required to be paid back at those interest rates, it will undoubtedly be a very difficult task to repay that debt. Filing for bankruptcy is always an option that can protect you from debt. Chapter 7 bankruptcy can completely eliminate unsecured credit card debt. Chapter 13 bankruptcy allows you repay a small portion of your debt over a 5-year period (in New York state).
Of course, bankruptcy will be a bad mark on your credit, but when bad becomes worse, it is an option everyone should know about.
If you live in New York state and have any additional questions, please feel free to call our office.
(518) 465-2211