Eliminate Credit Card Debt

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without morgaging the house.

Best Answer

Take your highest interest rate card and pay 10% more on that card. For example, if the payment is $100, pay $110. Continue to make the minumum payment on the lower interest rate cards. Once you have paid off the highest interest rate card. Take that payment and add it to the payment you would make to the NEXT highest interest rate card. Continue to do that until your credit debt is paid.

Best Answer

Pay more than your minimum balance. As much as you possibly can!! If you have any 3% or 4% transfer deals that last for the LIFE OF THE TRANSFER - go for it. This is the best way to deal with large debt. One thing I can say - from experience - Don't go crazy on spending to try to create a credit history for yourself. small purchases and paying them off is all it takes. If you are already in big debt - stop using your card and just use cash - if you can't afford what you want - then wait until you can afford it. But try to hold off and use that money towards paying the CC debt. I opened up my first cards like 13 years ago and didn't know what I was doing. I used to buy all kinds of stuff on them just because I was trying to help myself to grow my credit. Well I found out the long and tedious way... that this is not a good idea. After 10 long years of buckling down and being on a strict budget we are finally out of debt. I never missed payments and always remained in good standing with my creditors. After paying off the $57,000 we are now DEBT FREE! Now I use the credit card the way it was really designed for.... to not have to have cash on me at the time but to know that I can pay it off in FULL when that bill comes. Credit is not ment for living beyond your means - it is a tool to be used wisely. So many people out there now-a-days live way beyond their means - in that they put everything on credit and then pay the minimums. If you can't afford to buy it today with the cash in your account - then you just can't afford it! If you adopt this attitude you will keep yourself from alot of heartache and mountains of CC debt. Good luck & be smart about using your CC :)

Can an individual eliminate credit card debt by declaring bankruptcy? I didn't think you could wipe it out, just get the bill collectors off your back. But, someone told me that it depends on which chapter of bankruptcy you use. The right one WILL eliminate credit card debt. I know someone who has $80,000 in credit card debt and they are trying to do that to get rid of that debt! Is it really possible? Are there any restrictions in doing this. Can you ever get a credit card again if you do it? If you file bankruptcy to eliminate all debt, do you have to give up ALL of your possessions? Will you have anything left? This is for a friend of mine (really). They don't own a home. They have 2 cars and some furniture and A 401k plan. Between the two of them they make about $40,000 a year. I don't see how debt consolidation will help them How could they EVER pay off $80,000!?! They had a house but they used up all the equity in it over the years and sold it recently and broke even on the deal, ending up with NOTHING! What a mess! I just didn't think they could wipe out their credit card debt! And, it really isn't fair to the rest of us that pay our bills!

Best Answer

There are a number of factors involved. A chapter 13 is where you have to pay back some of the debt. How much depends on what your current disposable income is and how much your debts total. There is a fairly complicate formula involved. But this will stop them from filing judgments, garnishments or liens. It freezes interest and late fees. And it protect your property if you own a home or car. A chapter 7 is called "liquidation" for a reason. You may have to give up most of your property. Therefore, if you have a lot of property along with that 80k in credit card debts, you may have trouble keeping it all. Also, you must pass a "means test". This was put into place to prevent someone who has a very good job from filing BK and dodging their debts. If you earn (generally) over $45k a year you will not qualify for Chapter 7. Again..there is a complicated formula to figure this out. There are a lot of bankruptcy lawyers who have a free consultation. If you think it's necessary talk your situation over with them.

Estimated 6000 debt on high interest credit card....

Best Answer

I work in the credit industry and there are several ways you can go about tackling this. First off, take comfort in the knowledge that $6k is not a lot to owe, but if you don't pay it the right way, it will become a long term problem. Step one: contact your credit card companies and request that they lower your interest rate. if you have been a good consumer they will most likely lower the rate... if you have not been paying on time and look like a risk, they will put up a fight... no matter what, do not give up on the idea that you can lower your interest rate... If you have been on time tell them that you are considering obtaining a different card, and unless they can lower the rate you are simply going to transfer your balance to a new card and cancel the account. If you have been bad at staying on time with your payments - then its time to get current and stay current. After 6 months of being timely with your payments they will lower your APR. next step is to develop a repayment plan... if you can out $200 per month toward the debt you should be done in under 3 yrs. I would suggest that you set yourself up to pay your bills on line using an auto bill pay system, most banks offer this service free of charge and it is a quick way to have your payments go out. Its also easy to track and manage. Set yourself up to pay every 2 weeks. ($6k means your monthly minimum is probably $120 - $135) try an set it so that you make this payment every time you get paid... the more money you can spare towards the debt the faster it will be paid off. In the meantime you will also want to set up a household budget to see how much money is coming in and out of every dollar, how many pennies are being committed to bills. Once you know what you have to work with it will be easier to plan out the upcoming months. If you have a lot of extra cash that you can put toward the debt, make sure that you also set aside a reasonable amount into your savings account (if you have $150 that you can send to your card - send $130 and put $20 into savings) The reason that you want to put money in savings is that you will begin to build up solvency - meaning that you won't have to rely on credit should some unexpected expense come up... (new tires, emergency repairs, etc) Finally, once you have paid off the debts, DO NOT STOP PAYING- only change where you are sending the money... what I mean is, put that $150 into your savings account so that you can start building up a bit of a nest egg. Having accessable cash help to further stabilize your finances. Everyone should have at least 6 months worth of living expenses available to them in their savings account. This is an emergency fund that will prevent you from going back into debt should you lose your job, have to move or encounter a large expense down the road (want to buy a home, etc) There are several professional services that can help such as Debt Management and Settlement Companies, but if you are responsible and can handle taking 3 hours a month to look over your situation you don't really need them. Always be proactive with your debts, always look for ways to save. With a little patience, self-control and determination you will be out of debt in no time. Best of luck to you.

When a card holder uses a credit card, he is borrowing from the credit company. How he eliminate his credit card debt.

Best Answer

You need to take some time and learn about money management. It sounds like an old, worn out line but it is true. Using credit cards can help "balance" your money to some degree but it needs to be used wisely. By balance I mean that it can help you during low points of available cash. For people being paid monthly, credit cards can be a real help. The only proper way to get out of debt is to pay it off and manage your money better.