quickest way to pay off CC debt? - Page 2

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[ARCHIVED THREAD] - quickest way to pay off CC debt? (Page 2 of 2)

Posted: 9/28/2005 2:23:35 PM EDT

[#1]

Quoted:
Stop buying SHIT you cant AFFORD.

Thanks for sharing your wisdom!

Posted: 9/29/2005 4:24:52 AM EDT

[#2]

Quoted:

I don't have problems paying bills now, but when I was younger, broker, and dumber, I went for quite sometime without paying on a certain card, and to show for it, that card has a [embarrassing rate]31%[/embarrassing rate] rate, and a balance $400 OVER its limit. Since I got my shit together, I've been paying more than the minimum, but not nearly enough to make a dent.

Double check that you aren't getting hit with a monthly "over limit fee." If you are, make sure you pay that card down (to at least below the credit limit) first so it makes that fee go away.

Back when I was a student, I went over my limit on the Discover card. They charged me $30 per month as an "over limit" fee.

Posted: 9/29/2005 4:45:54 AM EDT

[#3]

I know this sounds crazy, but can you get another card? One with an introductory rate of zero percent for a year or something like that? Then transfer your 31% card balance the the new card?

If not, do any of your current cards have a balance transfer program?

It doesn't take negotiation skills to do balance transfers. Just call all of your cards 800 numbers and ask the customer service agent if they have balance transfer programs with no fee. Find the one with the best rates and do the transfer. You may have to do transfers to multiple cards.

Do everything you can to get all the balance off that 31% card. Then cancel that one card. It has a poor payment history.

Posted: 9/29/2005 4:46:41 AM EDT

[#4]

Find Dave Ramsey's web site.....he's got the plan.

(I wish you wouldn't, though. Somebody's got to finance all of my "rewards"!)

Posted: 9/29/2005 4:55:51 AM EDT

[#5]

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It seems like I get offers daily for credit cards that have zero interest rate for the first six months to a year on balance transfers. I would apply for a couple of those cards and then pay off all the others that are charging interest. If you don't have the balance on the new card paid off within six months to a year then switch to another card offering zero interest until they are all paid in full. Hell, I'll use interest free money for as long as someone wants to offer it to me.

Um, I'm pretty sure pulling that kind of crap will destroy your credit rating. It's also very dishonorable.

I cannot imagine how that is dishonorable. The card companies set the rules, he proposes to follow those rules exactly...where is the dishonor?

Jim

Oh crap! I quoted the wrong post. I was referring to the suggestion to try to "settle" for less than the owed amount. Sorry!

Posted: 9/29/2005 5:42:34 AM EDT

[#6]

Quoted:
The most important step is to cut the cards into little pieces and stop using them.

Yes!

1) Cut up the cards first.

2) Track expenses so you can see where your money is going on a monthly basis.

3) Create a budget so you can put your money into NEEDS and not WANTS - include a payoff amount for the credit cards (When they're paid off, this can go into building a savings account!)

4) Cut out unnecessary expenses. Do you really, really, really need HBO or even cable for that matter? Is that cel phone something you can't live without? Movies cost money, library books are free. Cut until it hurts, then go for a month without something you think you need and see if you can live without it. Fast food is much more expensive than groceries.

5) Follow the budget so you can stay out of further debt.

6) Consolidate all cards into one with a low rate.

7) Pay off that card as quickly as you can. If you can't consolidate, then pay off the highest interest cards first.

8) Build up a savings account and learn to control your expenses and impulse buys especially.

Good luck

Posted: 9/29/2005 5:56:29 AM EDT

[#7]

Quoted:
What is the quickest, most efficient way to use $2000 to pay off CC debt of about 5k?

I have a handful of CCs with balances between $500 and $1500. My current plan is to use the entire amount to pay off the two cards with the highest rates, then apply the money that I was paying on those to a single card until it is paid. Then apply all three payments to another card, and so on...

Is there a smarter way?

Jake

When you find yourself in a hole, stop digging. A simple concept, often ignored.

Posted: 9/29/2005 5:59:46 AM EDT

[#8]

When I had credit card debt, I made the mistake of trying to pay it off too quickly. I would write a big check towards the balance of the card, which felt good, but then at the end of the month I'd be out of money and have to use the card again. So I was taking two steps forward and one step back. Once I figured out what was happening, I cut back to the minimum payment for a few months, and waited until I had a safety margin in my checking account. Then I started paying off the card, at a reasonable amount, but still had the cash to live on. Paying them off was easy as pie after I stopped using them.

I've also heard some people talk about taking out a small bank loan to pay off credit cards because the interest would be lower, but I've never done the math. But that's definitely a case that would require discipline or you could double your trouble.

Posted: 9/29/2005 7:31:34 AM EDT

[#9]

What is the balance on the 31% card? If the $2k will pay it off, do that. Otherwise, at least pay enough to get the balance below the limit to avoid overlimit fees.

Consider selling some stuff to raise additional cash, get a second job for a while, etc. If possible consider a small personal loan, etc to pay everything off and save interest. PAY THE LOAN OFF after you get it.

Stop using the cards. Cut them up and close the accounts, except for the one card with the best terms. Use it only for reservations, etc that require a credit card.

Posted: 9/29/2005 7:34:20 AM EDT

[#10]

Quoted:
Instead of the highest rates first pay off the one with the lowest balance first. Then take that money and start on the next one with the lowest balance.

Yep +1

Posted: 9/29/2005 7:50:49 AM EDT

[#11]

Quoted:
Quoted:
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Call each CC company and ask for settlement on the amount. If they won't settle, tell them that you will quit paying and the debt can go into charge off status and they'll never see the money. At that time they usually straighten up and start talking. I work with CC companies all day and settle for between 50 and 60% of the balance and turn the 2000 dollars you have and buck up the extra 500 to pay off the cards totally.

My .02.

Looting is really cool too.

Get off your friggin' high horse and spare us all the pompous bullshi'ite. I'm sure YOU have no debt whatsoever and have never been fuqed over by a cc company. Let the one without sin cast the first stone.

To Jake1978, listen to j-fonz, he speaks the truth. The rest are just kibitzing.

+1. That would be a good plan to avoid Bankruptcy, but he is not too far into debt. Five grand is not that much. GetRdone

!

Posted: 9/29/2005 8:58:53 AM EDT

[#12]

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That brings up another question...when I get the bastards paid, is it wiser credit-wise to close the accounts or leave them open with ZERO balances?

I was once advised to close the accounts when I paid them off. Then I found out that was very negative when I applied for a new car loan.

I had paid them off and closed the accounts specifically to prepare to apply for and take on a new car loan.

Because on a credit report, it isn't always clear that the account is being closed by the cardholder. For all the reader knows, they account was closed because you fucked up too far. Keep it open, close it in a year if you want.

Posted: 9/29/2005 9:11:51 AM EDT

[#13]

tag

Posted: 9/29/2005 10:07:49 AM EDT

[#14]

Quoted:
Quoted:

That brings up another question...when I get the bastards paid, is it wiser credit-wise to close the accounts or leave them open with ZERO balances?

I was once advised to close the accounts when I paid them off. Then I found out that was very negative when I applied for a new car loan.

I had paid them off and closed the accounts specifically to prepare to apply for and take on a new car loan.

Strange. I have cancelled numerous cards over the years, and they all show on a credit report as "closed at customer request". Hasnt affected my credit either.

Posted: 9/29/2005 10:19:08 AM EDT

[#15]

On a TriMerge (your credit from all 3 bureaus) closed accounts show up (usually) as one of two things - closed by consumer or closed by credit grantor. Try to avoid the latter.

Posted: 9/29/2005 10:33:33 AM EDT

[#16]

Quoted:
What is the balance on the 31% card? If the $2k will pay it off, do that. Otherwise, at least pay enough to get the balance below the limit to avoid overlimit fees.

Consider selling some stuff to raise additional cash, get a second job for a while, etc. If possible consider a small personal loan, etc to pay everything off and save interest. PAY THE LOAN OFF after you get it.

Stop using the cards. Cut them up and close the accounts, except for the one card with the best terms. Use it only for reservations, etc that require a credit card.

That sonofabitch is getting paid off today! Luckily, they were not charging over-limit fees each month.

As a matter of fact if anyone needs a 10.5" upper (cough)checktheEE(cough).

Honestly, I haven't used the cards in forever, except for one of them(with the lowest rate) when we bought a house. I'm by no means in huge debt, or about to go into bankruptcy or anything like that. It's just that paying the minimum payment on the cards gets you nowhere, and thats what I've been doing forever. So I finally decided to bite the bullet and use money that was earmarked for a motorcycle.

On a couple of my cards, they are charging a minimal monthly membership fee, WHICH I DO NOT WANT TO PAY

but I don't want to cancel the account altogether b/c as some pointed out, that might hurt my rating also. I guess I'll have to call and threaten to close the account unless they remove the membership fee.

Posted: 9/29/2005 2:36:09 PM EDT

[#17]

F@$king Capital One refused to waive the monthly membership fees, and called my bluff when I told them to close the accounts...

So, now unless I call them back up, I will have two voluntarily closed accounts on my record....

Posted: 9/29/2005 2:52:58 PM EDT

[#18]

Quoted:
Quoted:
Stop buying SHIT you cant AFFORD.

Thanks for sharing your wisdom!

SMARTEN THE FUCK_UP, Close the accounts.....they will not let you

Waaaaaa. CLOSE the accounts you neither have the capacity to manage one or are scamming them on. 78' I got 20+ yrs on you, they tried that crap on me also. I go to AZ winters, Orbitz billed me for 4 trips w/ 1 booking and recindided only 1 after 'dispute'......I told them ......."discover" I'd supplied the proper paper work and they still wanted 'their' money. I had to cancel a new account they set up for me to pay the old account I closed. Fuck them, but I must say, Thanks for the origional trips cost I'da paid, they forfited it after my cancelation

Posted: 9/29/2005 2:57:59 PM EDT

[#19]

Quoted:

SMARTEN THE FUCK_UP, Close the accounts.....they will not let youWaaaaaa. CLOSE the accounts you neither have the capacity to manage one or are scamming them on. 78' I got 20+ yrs on you, they tried that crap on me also. I go to AZ winters, Orbitz billed me for 4 trips w/ 1 booking and recindided only 1 after 'dispute'......I told them ......."discover" I'd supplied the proper paper work and they still wanted 'their' money. I had to cancel a new account they set up for me to pay the old account I closed. Fuck them, but I must say, Thanks for the origional trips cost I'da paid, they forfited it after my cancelation

Posted: 9/29/2005 3:15:48 PM EDT

[#20]

Quoted:
Quoted:

SMARTEN THE FUCK_UP, Close the accounts.....they will not let youWaaaaaa. CLOSE the accounts you neither have the capacity to manage one or are scamming them on. 78' I got 20+ yrs on you, they tried that crap on me also. I go to AZ winters, Orbitz billed me for 4 trips w/ 1 booking and recindided only 1 after 'dispute'......I told them ......."discover" I'd supplied the proper paper work and they still wanted 'their' money. I had to cancel a new account they set up for me to pay the old account I closed. Fuck them, but I must say, Thanks for the origional trips cost I'da paid, they forfited it after my cancelation

...yes my verbal coherency is limited for most ourtside my brain.

However..... CANCEL the card or cards! Plus I admit....I did'nt read the whole thread. BUT cancel the card! They'll send youa new one with the same balance + 40bux non payment. Least they did 2me. Cancel it again! You pay it off every month or do not use it EVER!

Posted: 9/29/2005 3:38:05 PM EDT

[#21]

Quoted:
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That brings up another question...when I get the bastards paid, is it wiser credit-wise to close the accounts or leave them open with ZERO balances?

I was once advised to close the accounts when I paid them off. Then I found out that was very negative when I applied for a new car loan.

I had paid them off and closed the accounts specifically to prepare to apply for and take on a new car loan.

Strange. I have cancelled numerous cards over the years, and they all show on a credit report as "closed at customer request". Hasnt affected my credit either.

Actually, it may have affected your score. The longer you have a line of credit the more weight it has in your score. It's not a negative per se, but if you're "gaming" the system you cost yourself points.

Posted: 9/29/2005 4:06:34 PM EDT

[#22]

Congratulations on getting out of the credit business. It is designed for convenience....THIERS!

I have one card I use for catalog ordering. I pay my balance every month. I know true debt free thinking is to get rid of all cards. Hog wash, have one but use your good sense and treat it like cash and spend only what you really can afford. Discipline is the key.

To hell with the credit ratings, cancel all cards or all but one. Don't listen to them about not being able to close accounts with balances. Why would you care about their rating. You have a house, you are making payments. You're credit is fine and is in better shape w/o that extra potential debt/credit. If you didn't already know it, all available balances count as debt when they do your loans because you can be in that much debt in short order.

If you pay your bills your credit is good. If you carry savings and pay cash then you don't need a credit rating at all because you're not borrowing. A nice position to be in. Eh?

SoS

Posted: 9/29/2005 4:11:50 PM EDT

[#23]

Quoted:

Actually, it may have affected your score. The longer you have a line of credit the more weight it has in your score. It's not a negative per se, but if you're "gaming" the system you cost yourself points.

So, if I've had the card for say 5 years, and pay it off and close it now, would that hurt my score more or less than if I closed it after 2 years?

[ARCHIVED THREAD] - quickest way to pay off CC debt? (Page 2 of 2)

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