I know we owe an violent volume of money, though I’m not certain what to do about it. It is all upon 1 credit label as well as we have good credit, though we usually compensate a smallest each month. My pursuit incident has altered as well as we am now not means to compensate a smallest anymore… Please give me advice, credit consolidation, call a company, what do we do?????? Thanks in allege for any guidance!!
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When your financial situation unexpectedly changes, due to something like losing a job you have to sit down and take a long look at your finances. Only after examining both your debt and your assets, can you make an informed decision about the best course of action to take in rectifying the situation. Professionals are available for free consultations for pretty much all the available options. There is no reason not to speak with somebody in each field. Only by knowing the pros and cons of for your particular situation of debt settlement, debt management, bankruptcy, and credit counseling can you really make the best choice. Remember that the best choice is always going to be an informed one.
Look at it this way, you need to get as much debt as possible out of the high interest rates you are paying on your card. So, you can try a debt consolidation loan or something of that nature but you may have to put up some collateral. The main thing right now is to check with your bank for options and then the credit card company.
basically redo ur life…. u gotta make decisions to make more money than u spend and eventually u’ll have surplus
i don’t think there are any real short term fixes
good luck
ya and the interest ur getting charged is ridiculous so i try and figure something out asap
You may have to check into credit counseling. Check here for a NFCC member: http://www.nfcc.org/. These are legit, non-profit companies that offer debt management programs for a nominal fee. They negotiate lower interest and payment so you can pay off your debt.
But even more, you need their help with budgeting and learning to live within your means. You run up $30K credit card balances by buying stuff you can’t afford.
You might consider ways to bring in more money to pay on that credit card — have a garage sale, collect alum cans, get a second job.
Interest rates are what will get you.
First call the company and tell them to lower your interest rate. Don’t ask, tell. If you have great credit like you say, there’s no reason for them not to. And if they refuse, make sure they know that there’s another company that would love to have your business. Then apply to another credit card that offers a low interest rate. Some give deals like 0% for the first 6 months and then 11% interest afterwards or something like that. Anyways, once you get the new card, transfer as much as you can from the old credit card to the new credit card. Make sure that you check if there are any balance transfer fees. Because of the economy, most are offering free balance transfers.
Once you have have the new card and old card set, start paying every month like you do. The minimum on your 1st card should go down because there is not as much money on it and the 2nd card should be low because of the 0% interest. With the 1st card, pay at least $50 plus the minimum every month if you can, and keep paying the minimum on the 2nd card. After 6 months of this, apply for another card that is 0% interest and transfer more money onto there.
Once you have that, the rule is to pay as much as you can on the card that has the highest interest and pay monthly minimums on the other cards. Once the first card is paid off, apply what you were paying monthly on that to the next highest interest card and so on and so forth until it is all paid off.
Do not file for bankruptcy! It’ll take time to clear the debt but you can do it! And don’t use the new credit cards for anything!!!!
If you want to save your credit go to credit consolidation. They can either get the interest rate lowered or may be taken away completelyly im not too for sure. But if yodon’tnt pay they will raise the interest rate very high plus late fees and call you all the time. Or go to a lawyer and file for bank ruptcy and it will be on record for 10 years although I did that and was able to start rebuilding my credit in about 2 to 3 years but it is still on my records. and if you got alot of things on a credit card they wont take it away from you . Unless the laws have changed on that it was about 4 to 5 yrs ago I did mine. and this happens to the best of us . Good Luck
Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS). They can negotiate reduced interest and payments. They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it difficult to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would might be denied while you’re enrolled in the CCCS debt management program…
While an accredited credit counseling program like CCCS can be good you need to be aware that these programs are funded by the credit card industry and this can create an obvious conflict of interest in the advise they give you. Because of this they will not negotiate settlements for less. CCCS counselors will often tell people to not file for bankruptcy when they really should. If your debt is overwhelming relative to your income/assets…and you’ve exhausted all other possibilities and the reduced payments negotiated by CCCS simply will not work, then you should think about filing for Chapter 7 bankruptcy.
$30K is a very large amount of credit card debt….You may want to think about filing for Chapter 7. Don’t let anyone guilt trip you if you need to do this….just remember that you can only file for Chapter 7 once every 8 years…not every time you get into financial trouble.
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Stay away from any "debt consolidation" company that promises to cut your debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment. Many people who sign up with “debt consolidation” firms incorrectly assume that they have the power to force your creditors to accept settlements…they don’t. Your creditors have the right to refuse settlements and take you to court.
Transfer as much as you can to a lower interest rate card. I like a card offered by the pentagon federal credit union. They will give you a 4.99% interest rate for the life of the balance transfer.
Also, stop putting any new charges on these cards – cash only for everything – so it doesn’t get any worse. If there are some expenses you must charge (such as for work, for example) get a different card and use it for that purpose, and pay it in full every month.
If you have a house, you could look into taking a home equity line of credit to pay this off, but that has some risks, so only do it if whatever caused you to be $30k in debt is no longer an issue.
If you have a family member who also has great credit, they might be able to transfer some of your debt to their name and allow you to pay it off under their name at a lower interest rate.
As a last resort, you could call the company, tell them you are in financial distress, and see if they will lower your rate and allow you to pay this off over 5 years. The payments required will probably be something like $700 a month, so know in advance if you can afford this before making that call. At least ask them if they will lower your interest rate.
Otherwise, take a second, weekend job for more income. Or, if you live alone, bring in a roommate to help reduce housing and utility expenses. If you have an expensive car, sell or trade it in for a junker and reduce your car expenses.
If you normally get an income tax refund, change your withholding so you get some more take home pay to help pay off this debt.
CCCS or any other non profit debt management program is needed for you case. This would be the best option and if that fails then look at bankruptcy.