Buy Credit Card Debt

We are a miilitary family and due to move in a few months. We have credit card debt that we are working on paying off. Is there anything we could do to qualify for buying a home before we pay off the balances or should we just rent and continue to work on our debt?

Pay of the balances as quickly as you possibly can and then start saving for your down payment. Save until you have 20% for the down payment so that you don't have to pay PMI. Lenders are more likely to give you a mortgage (fixed rate only please) if you have a 20% down payment because you are then a "better risk". To help you along:

A. Have a garage sale and sell anything that you no longer need or want.
B.Get a temporary part time job, if you have one, get another. The holidays are coming and there will be plenty of temporary jobs available. It is better to have a no fun year or two than a no fun decade.


Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.

2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.

3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:

To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment

Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment

Debt #1: paid off
Debt #2: paid off
Debt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.

That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.

4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.

5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.

5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.

5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.

You can do it and it isn't as hard as you think. Just follow the plan.

2008-10-23 12:17:54 by Mom of Two

www.letsforgetdebt.com - An excellent informative site and service to help anyone with credit card debt. A step by step video talking about the ...

I was injured and lost my job 6 years ago, I only paid what I could afford to. I had a credit card that I let go. The card company charged it off and the debt has been sold many times since. Now the latest company who has bought the debt has filed papers in my local county court to put a judgement on me for the unpaid money. Can they do this? I thought that only the original company could do this?

If it's within the statute of limitations for your state, then yes. Any company that bought your debt can take legal action.

There is a statute of limitations for credit card debt, which is the amount of time that they can successfully take legal action against you for the debt. This time period varies for each state. You can find this time period for your state by going to the link below and looking under "Open Accounts."

http://www.creditinfocenter.com/rebuild/ statuteLimitations.shtml

If the number of years since you defaulted on this account and stopped making payments on it is greater than the number listed for your state, then they can no longer defeat you in any court action because the debt is time-barred
============
If this is a real, confirmed lawsuit:

On the court date: DO NOT be a no-show under any circumstances whatsoever. People often make the HUGE mistake of not showing up because they think they’d loose anyway or because they can’t afford an attorney. Not showing up is the worst thing you can possibly do. Even if you are frightened....or you're sick with a 102 degree fever...or if you think that you'd loose, show up anyway! If you don't, the other side will get a default judgement and they will get this on THEIR terms. They will tack on all sorts of add-on fees and the amount of the judgment could end up being two or three times the actual amount of the debt.

IMPORTANT: bring complete documentation of your income and living expenses: Pay stubs and copies of bills. Even if you loose, you can use this to negotiate much more favorable repayment terms. Request the following info from the other side on the court date:

- A copy of the original application with my signature for this alleged debt
- How much was this debt purchased for?
- Provide a fully itemized statement for the amount you are asking which clearly details how this amount over the amount that was paid for this debt was calculated, including the interest rate being charged. Confirm that this rate falls within state usury limits

I wrote a more through response on how to deal with being sued for credit card debt at:
http://answers.yahoo.com/question/index? qid=20090806101155AAtqVxu

2009-09-19 14:02:21 by sweetnchunky

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I've stopped paying on several credit cards for over a year. Is there any way to find out who bought the debt? I now have the money needed to pay these companies back.

Too bad I didn't have a house, otherwise the Democrats would have paid for it.

If you haven't needed a credit card up until people have been telling you that you need one, don't worry about it. You really don't 'need' one. The only reason that I got my credit card (aside to help with my credit score!) was for emergiencies-and that was at my family suggestion. I ended up applying for a card through my bank/federal credit union. They will be easier than any other place, especially if you have been with them for a while. Make sure you have NO annual fee. Aside from that, pick and choose.

http://hubpages.com/_36442/hub/How-to-Se lect-best-credit-card

2008-11-10 13:23:44 by Jimmy M

Price: $2.99

we would like to look at purchasing a foreclosure home, but we have lots of student loans and some credit card debt.

my husband and I plan to. I think most people nowadays have debt

2009-01-12 20:15:49 by mcnld2002

I once had an old power bill and capitol one credit company offered me a credit card but I had to charge the old debt to the credit card in order to start a history of on time payments. Once I paid off the debt they gave me a three hundred dollar limit. It was an unsolicted offer, where can I find that same deal again with another credit card company to help clear debt and re-establish my credit rating once again?

look for a secured credit card to start. with all due respect, i didnt know credit cards offered a $300 limit - mine is $25K per card and i think my first card in college was no limit (amex). get card, pay on time, every time.

2007-08-30 03:01:22 by lela1026