Answers
I can eliminate this debt today by paying this card off and keeping the much needed $1,100 it will save me, but will this cause too much of a negative impact on my good credit to make it worth keeping the money?
In actuality, income does not affect your credit score. Also, settling can help you out. If you don't pay it off now, it will sit on your credit report for much longer then if you settle. If you are at the point where you can settle for less, then you have already hurt your credit. However, the collection agency can still sell your account to someone else who will ding your credit, and they can do the same...and on and on and on. That means, the longer you don't settle, the longer your credit score will hurt you.
However, once you have settled, you can get them removed from your TRW by doing a simple TRW Clean Up. It's easy and only takes 30 days to get your score up. Plus, there are tons of other easy ways to strengthen your score fast. Check out the two articles below to see how to do this fast. I've done it myself and it does work.
Hope this helps.
Visit www.FreedomDebtRelief.com for more information. About Freedom Debt Relief Our Debt Reduction Program is an innovative solution for consumers ...
I was on the verge of Bankruptcy a couple years ago and my parents generously offered to allow me to move back home for a year to get my credit squared away.
In that year, I managed to settle my debt with almost all my creditors for about 1/2 to 2/3rds of the orginal debt. For example, my debt with one credit card was about $1,800 and I settled for $1,000 and paid it off.
A year or so later, I'm starting to receive letters from different creditors stating that I owed now $800.00 to them as they've bought the balance of my debt from the last collection agency.
Is this legal? Why should I bother settling if they can turn right around and make the pay the full balance anyway? I live in the State of Oklahoma if that matters.
Do NOT pay them anything and tell them that you've settled the original debt with the original company. If they insist that you owe the money tell them that you have the documentation to show that the debt was settled, and if they report you to the credit companies, that you'll file a wrongful debt suit against them. Play hardball and you'll win, but under no circumstances pay them a penny. If you do, it's like an admission of the debt.
1. I have 6 credit cards that are closed to being at there maximum.
2. All the credit cards have a limit of $800.00
3. I would like to keep at least 3 of the cards with the best percentage rate.
4. The way the Internet is with so much dis-information, you can't really figure out what debt consolidation companies are legitimate.
5. The Internet is hard to navigate for legitimate government programs that may help.
6. My finances consist of unemployment.
First, you need to check your interest rates. If they're higher than 13%, call the credit card companies to see if they will lower them. In many cases, they will do it just to keep you as a customer.
Then see if you can sign up for a credit card with a lower interest rate. For best results, get a card with a low rate that is good for the life of the loan. Then transfer the balances from your old cards to the new card, even if you have to pay a balance transfer fee. You may also be able to get a low-interest personal loan to pay off the high-interest credit cards. Shop around for the best rates and terms, and check your local credit union; their rates are usually better than banks.
This is your best bet while you're receiving unemployment, since it's unlikely that you'll have extra money to pay down the balances. However, when you do get a job, you should start paying extra on the credit cards. Paying even double the minimum payment will dramatically decrease the time time it takes you to pay them off.
Meanwhile, be very careful about your spending. Don't run up any more credit debt. If you have the discipline to keep your spending in check and pay the card off in full every month, use a separate card for groceries, gas and other necessary expendatures. Otherwise, use a debit card, checks or cash to pay your bills.
The only government programs available to help people get out of credit card debt are government-approved credit counseling services. You can check the Federal Trade Commission (FTC.gov) or U.S. Department of Justice (USDOJ.gov) website to see which couselors are approved. If you get into serious trouble, you may need to contact a lawyer to help you obtain a settlement with the credit card company, but it doesn't sound like you're at that point yet.
I owe $145,000 on my home which appraises for $182,000. I have $17,800. in credit card debt. My current rate is 7.75% and I still have 29 1/2 years left on my mortgage. Do you think it would be a good idea to refinance my home for $172,000 at a rate of 6.6% to relieve myself of this debt that never seems to go down. My mortgage would go up about $140 a month and my overall savings would be about $350.00 a month by paying off my credit cards. I'm not sure if it's a good idea and any advice would be greatly appreciated. If I go through with this I plan on closing all credit cards except for one. Thanks.
What you are proposing is one reason for the mortgage crisis, pouring all our debt into our homes. . . . .leaving little or no equity in home. . . .
It may be possible. . . .start with your current lender first, but check out at least one other. . . . .IF you refrain from using your charge cards it can be a good deal for you. . . .It would be an even better deal, IF you were to take $200 of the $350 you're saving, and make extra principal payments, thus building up your equity in your home more quickly. . . .and you'll still be $150 ahead. . . .the first 10 years with a mortgage almost all your money goes to interest. . . .putting extra into principal will shorten your loan and significantly decrease the money you pay in interest over life of loan
If you can't do this. . . . .then just start throwing every penny into paying off your debts. . .show restraint in spending. . . .you can do it
Okay, I'm 21 with 13,800 dollars in credit card debt. I have NO idea how it happened, I never planned for it to happen but it just did. I'm not behind on anything, at all. I have a full-time job making about 32,000 a year, but I just need advice. Should I consolidate all the debt onto one card? I have a card with a 38,000 dollar limit that has a 0 balance and a 2.9% for life transfer offer. Should I move all my debt onto this card? I have about 6 credit card payments to make each month, and its just getting out of control. Some of the debt isn't "Mine" and about 5,000 of it will be paid around tax time, but I just don't know what to do for now. I owe:
Capital One: 1,700@ 1.99% fixed for life
CitiCards: 1,200@ 0.00% until 8/2009
FifthThird: 900@ 0.00% until Nov. 2009
Chase: 1,600@ 7.24(v)
HSBC: 2,750@ 0.00% until October 2009
CitiCards: 2000@2.9% until May 2010
Chase: 1,960@ 3.99% for life
WaMu: 775.00@ 0.00% until July 2009
Which ones should I consolidate?! I have some offers for 5.99% for life with a Chase Card of mine with a large limit. Any ideas? And-don't worry, I've cut them up already...I was just trying to get through college and 6 months with no job....Thanks for your help. It's not completely out of control, I can afford the payments and I generally know how to play the credit card game as far as moving balances to 0% offers etc. and i've NEVER missed a payment on any, thus the incredibly large limits for someone my age (why, WHY is it so easy?!)
I just want to know what the easiest way to tackle this debt is. Should I consolidate them together? Keep them the way they are? There has to be a more manageable way to handle this...it just seems crazy making SO many payments each month....
Don't close any accounts whatever you do. The large limits are good for your credit score as long as you keep your owed balance under 35% of the limit.
If you have cut up the cards then the balances won't change so set up automatic payments from your bank account and leave it alone. Making a lot of separate payments doesn't cost anything, but transferring can cost in fees and changes in interest rates.
I would leave everything where it was and do what one other person said: pay off the one with the highest interest rate first.
Don't let people freak you out too much about this. This is actually pretty manageable amount of debt considering the average college student has $20K of student loan debt coming out of school, and all these interest rates are even better than student loan rates. As long as you are living within your means now, you should be fine. In fact, if you can pay all these off or down to very small balances, your credit score should be great.
I would just advise to keep track of the interest rates and if one does spike after the introductory rate, you can always either 'threaten' to move it to another card, or just do the math on the fees to transfer vs. the new interest rate.
Good luck, and welcome to the American rat/debt race!
AP ENTERPRISE: Vets wait for GI Bill payments
WASHINGTON — Universities and colleges are still waiting for tuition payments for thousands of Iraq and Afghanistan veterans who attended school last fall under the new GI Bill, leaving the veterans panicked that they'll be unable to return to class in January.
Veterans Affairs Department officials promise to get them back into the classroom. The VA says the number of veterans with claims unprocessed is now fewer than 5,000 — down from tens of thousands — and the goal is to have them all processed by the end of the year.
"We continue to work on a daily basis with schools to make sure that no student is denied attending class as a result of delayed tuition payments," Katie Roberts, a VA spokeswoman, said Tuesday. "It's a top priority for VA to make sure that students can focus on their studies rather than their bank accounts."
Florida Refinance with FHA mortgage, Florida FHA mortgage Refinance,
Florida FHA Mortgage Refinance, FLorida FHA loan Refinance
S ome advantages of using a FHA mortgage for your Florida mortgage refinance are as follows:
Cash-Out Refinance up to 95% for existing or new FHA mortgages.
Cash-Out up to 95% of your properties value. Consolidate first and second mortgages into single loan. Bill consolidation programs. Easier credit and income qualifications. FHA regulated closing costs.Rate and Term Mortgage Refinancing up to 97% of your homes value.
Consolidate first and second mortgages into a single loan. No FICO score or credit score requirements Competitive rates for borrowers with a Bankruptcy older than two years....News
Korea's Next Credit Boom—and Bust?Wall Street Journal - Dec 07, 2009
Korea's Next Credit Boom—and Bust?But credit-card debt also is playing a role, with spending on cards increasing by 6.5% in the third quarter compared to the second. and more »Philadelphia Inquirer - Dec 23, 2009
I have spoken to companies that have advertised on TV about getting out of debt with the aid of their credit-counseling service. My present credit-card debt and more »The Associated Press - Dec 22, 2009
He said he and his wife have racked up about $4000 in credit card debt because his university won't release student loans he needs for living expenses until and more »Philadelphia Inquirer - Dec 23, 2009
Most of all, I feared the post-holiday credit-card bill, sure to wipe out my meager savings and start the New Year off with debt. "You know what, Mom? and more »Bloomberg - Dec 15, 2009
Household debt “consists of a relatively high proportion of mortgage and credit card debts,” he said. Finance Minister Yoon Jeung Hyun said last month it's and more »Bayshore Courier - Dec 22, 2009
Below are Affinity's top five tips: (Evaluate the terms and conditions of your credit cards) - Credit card rates have skyrocketed this year. and more »
Wall Street Journal - Dec 10, 2009
After running up a record $988 billion in credit-card debt in 2008, Americans have cut $90 billion from their bills. They are also eating at home more often and more »