credit card debt - solutions? not drowning yet - but I'm in the deep end of the pool

[LEECH21]

Frozenminnow, you wrote that calling the credit card company and asking them to lower the rate will hurt your credit rating? Really?

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[Jarrod32]

frozenminnow is right in that if the CC company takes a "charge-off", that it will show up and adversely affect your credit rating. However, just setting up a lower interest (and often times lower fees) repayment schedule shouldn't...as long as you keep up the payments, of course.

[Howieroch]

I've been in your situation. My first advice would be to call your credit card company and ask for a lower interest rate - don't tell them you are having trouble, just tell them you are thinking about changing companies for a lower rate. If you have kept up your payments in the past they WILL lower your rate rather than lose you to a competitor.

After that I would go to a credit counselor and get help figuring out your options. If you are careful and work at it you should be able to get out of this without any negative marks on your credit history.

[say_der]

Yeah I'm not worried about having negative marks on my credit from this - now that I know that those debt consolidation companies will negatively impact my credit.

I do have an appointment set up with a financial advisor.

I just hate owing money on the stupid card and paying the interest on it. Someone mentioned being patient with it. I think that's my main problem right now is that now that I'm working again and my medical problems are HOPEFULLY done I'd like to be rid of the debt. But I've got to be realistic about it.

I'm glad I had insurance to cover the majority of the medical costs. It's still expensive as heck to have surgery with all the co-pays and fees. I think after everything was said and done I was out a few thousand for just that stuff.

[New Yankee]

Say,

U duh MAN, all the posts offer good advice, and you wisely asked before the wolves were at the door (and I don't think they were close...).

All good messages posted here - take what you can and leave the rest.

If we all had the answers, well, then we wouldn't be here.

I've stopped saying never and always because I'm usually proved wrong....

I'm confident you'll not have any issues going forward, although it ain't going to be fun as you know, for the next year or so.

Give us a post in a year or two when you can look back at this and with a grin !

Gods speed and good luck; we always need the former but the latter is usually our doing...

Take care and good fishing! (some one has gotta catch tham!)

[Double]

Great advice here, hats off to all contributors. I used to be in the same boat before I was married. As previously mentioned, call each credit card company and request a lower rate. If your account is in good standing, most creditors will comply with your request with no negative impact to your account. Creditors would rather grant the lower rate (on accounts in good standing) than risk losing your business to another company willing to lower the rate. Also, it helps not to apply for any credit unless you intend to use it. Every time a consumer applies for credit, the credit score is lowered regardless of whether or not a new account is opened. Creditors view this as the onset of further debt and it negatively impacts the credit score.

Many, many people either have or will find themself in credit card debt at some point. Too many creditors are willing to extend credit to consumers they know have no legitimate shot at keeping up with the payments. My wife has taught me the discipline it takes to chip away at credit card debt. It is a tough adjustment at first, but seeing those balances decrease soon becomes addicting. My credit score is dramatically higher now than it was even three years ago. You won't believe the sense of relief you feel when you mail in that last payment. Remember, every little bit helps and it all adds up.

In the words of Colts RB Edgerrin James, "When your outgo exceeds your intake, then your upkeep becomes your downfall."

Best of luck Say Der,
Double

[taxmancommeth]

Great posts everyone...

Like I said before with student loans I maybe have $10,000 but half of that is at loan interest student loans. In nearly a year I have cut it from 20,000 to the 10,000 mark I am now. The car will be paid off in February, and then on to the last card...

It just takes some hard work and dedication to NOT spending on unneccesary items. 4 fishing poles instead of 6, two tackle boxes instead of 4... It is tough those forst couple monthes but once you are used to not spending that extra $$ and putting it on those CC's, you willo be debt free in no time...

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GET-ER-DONE

[Blackstarluver]

First, cut up your credit cards and cancel the accounts. Never never never get another loan. Isn't that how you got here in the first place? Next contact your creditors, and let them know you are intending to pay your bills, honest people don't want to get behind and you are honest people who believes in making good on debts. Then start the "Debt Snowball" list your creditors from largest owed to least owed. Start paying as much as you can afford to the largest and minimums to the rest. Once the largest is paid off continue this process until you have everything cleared up. If you want more detailed info e-mail me at oscarsparents (at) yahoo.com. I could give you some info that you could really use.
God lyk and God bless!

[panolo]

I feel your pain fellas. I went through a period where I was $23,000 in credit card debt. I now have it down to $1500. It takes time but it is so rewarding to never have to pay some of them again. One trick that helped me was I split my payment into 2 equal amounts and paid one of the parts every two weeks. That makes you send in an extra payment a year. Once I paid one off I took the extra money and applied it too the next card. Like somebody said earlier. Burrn those cards and don't get discouraged.

[Big Bobber]

I also was in that same boat at one point in my life, and for me bankruptcy was not a personal option, so I sought an alternative means. One of the things that you may consider is either taking some part time employment such as stocking shelves or bagging groceries nights or weekends, or some type of self employment. I mowed lawns, raked leaves, and cleaned driveways in the winter, and worked for some farmers part time in the spring and fall. All of the extra money that I made went to the credit card each month. I found this to be the fastest way to get out from under that rock. Sure, it crimped the lifestyle for a while, but it was a great feeling when that last payment was made. Seeking financial advice is a good idea, but in the end, there is no silver bullet, just discipline and hard work. To this day I still mow lawns and remove snow from driveways. Today that money just helps support my fishing vice.

[kpj5br]

This post sure got a lot of attention!

Why?

Because most of us have been there at one time or another.

Excellent posts here, I just want to reiterate, DO NOT GO WITH A CCC (Consumer Credit Counseling) AGENCY NO MATTER WHAT. It is better to file bancruptcy then to go with one of those unfortunately. Trust me. They are funded by the creditors...you read between the lines...

[Ymmit]

STILLNOFISH,

Can you shoot me a email. I had a question about the No iterest Deal as i am kind of in the same situation as say_der.

[email protected]

Thanks,
Tim

[tomfromblaine]

Last weekend I was listening to wcco 830 and they had guest a speaker from the local area who specializes in this area, and they will be on again this weekend, (I was listening on sunday afternoon) these people are real and will help you, many people were calling in with every possible problem, listen in and keep a pen/paper handy there will be a phone # to call, and/or you can even call in your problem and discuss it with them on the air. Hope this helps