Your Questions About How Do I Get Out Of Debt With Credit Cards

Laura asks…

How to dig back out of credit card debt without ruining credit?

I have gotten myself in such a mess with credit cards I just want to beat my own a$$ and I need advice on how to work it out. I have racked up 1 card ($8300) 2nd card ($6000) and 3rd card ($2500) all maxed out. The payments are $250/$160 and $70 and I am making them but then the problem is that I am broke for the month so I use what I just paid on them and go to the grocery store to get groceries or go get gas and have to put it right back on the card. I AM SO SCREWED and I feel so stupid that I did it but I guess I proved to myself that I cannot be given a card with $8000 on it use it wisely, too late now though I just need to get back out of it. Please help!

richmama answers:

Find a credit card that you can have for 12 months 0% interest and transfer your credit card balances to that card. Each month put away a portion into a savings account to earn some interest. Just make sure to have enough money in there to cover the balance after the 12 months is up. And quite buying things unless they are a necessity. Hopefully your credit has been ruined by this but paying off that 0% credit card may help to bring it up!

Mary asks…

Can you help me get out of my massive credit card debt?

I have about 7500 in credit card debt. I know this may not seem like a lot to some people, but I‘m only 24 and I bought a truck that I probably shouldn’t have and the payments on that are what’s killing me. I‘ve decided that the last thing I want to do is get rid of the truck. I have fallen behind on some of my payments and am acquiring late fees and higher interest rates, and my credit is being shot to hell in a hurry. I have applied for several personal loans to pay off my credit cards and get one lower monthly payment, but I‘ve been denied every time because of my poor credit. I don’t really want to go through a credit counseling service yet, because that shows up on my credit report and will further reduce my score. I have worked thorugh my budget with a fine tooth comb and I‘ve done calcualting with differnt loan terms/interest rates/etc. and I know I can afford one, but how do I get one? Any advice you can give would be greatly appreciated.
I would appreciate worthwhile answers only, please. I‘ve only had the truck since March, so my loan would be way upside down, and with my credit what it is now, I wouldn’t get anything reliable for the loan I‘d get.

richmama answers:

Hi Nick:

Obviously you don’t want to get rid of the truck. This appears to be your priority. However, you’ve already experienced difficulty getting a consolidation loan. Having said that I would suggest:

1. Figure out how much you can send realistically to your credit cards.

2. Call your creditors and explain that you’ve overextended yourself. You know that you’ve got to pay your bills and want to do the responsible thing. Work out a payment arrangement. Get names, and dates of each person you speak to.

3. Cover every conversation with a letter outlining the payment arrangements and the person you’ve spoken to. Send it via certified, registered or overnight mail.

4. Cover your assets by keeping copies of the letters and confirmation of receipt in a safe place.

5. Get a part-time job. This will help you earn extra money and keep out of spending trouble.

6. Cut up or shred all your credit cards. You won’t need them to keep your credit active because you’ll be making payments on your truck.

7. Follow your payment plan exactly.

It is very important that you clean up your credit now. A poor credit score can cost you thousands in higher interest charges. It also affects how much you pay for car insurance, whether you can get utilities without a deposit and possibly your ability to get a job.

Good Luck!

Anne

Robert asks…

How to get out of credit card debt…?

I have about $5000 in credit card debt (between 4 cards). How do I go about settling with each debtor for a % of the total amount owed on each card. Since it is tax time I just want to get rid of this debt and start fresh. Would settling bring up my credit score any? I need help? What would be the best way rid this debt!!!
I recently lost my job to downsizing.

richmama answers:

If you settle be ready to pay right away.
Once you make that offer, they want their money fast.
They will remove some late fees, and interest charges, but you still have to pay for your purchases and some interest.
So if you have a lot of late fees – you can settle for less.
Go for 50% of the bill to start, and haggle.

And yes, settling, paying them off will make your rating skyrocket.
As long as you are not talking about collection agencies, just cc companies.
People that have top credit are those that charge things and pay the bill in full when it comes in. Never go over 30% of your available balance in any card.
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Michael asks…

What is best best way to get out of credit card debt?

I have 15k in credit card debt and i want to get rid of soon. I dont want to do go thru debt consolidation companys because it will have a negative affect on my credit. how should i start? payoff the ones with high interest first or what?

richmama answers:

Try http://personal-financial-help.solutionsarticles.com they aren’t that bad (7% for me) and definitely quick.
The Idea is to find a loan at less interests than you pay now, and fixed interests.
Credit cards can have high interests so it shouldn’t be difficult to beat them, depending on your credit score.

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