Credit Card Debt
A bible based - personal finance - Debt Free Adventure! [B] [l] [o]
Matt Jabs (Kindle Edition) Matt Jabs
Release date: 2009-05-15
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Answers
I've been reading different articles and blogs about paying off credit card debt and the one I like most is paying minimum on cards while you pay everything else set aside to one card and one card only until it's paid off. Then you pay minimum on the others while you move on to the next card and then the next.
I actually have quite a few cards, with rather higher minimum payments...
How detrimental would it be for me to not make the minimum payments (or any payment) on the other cards and use that lump sum to take care of 1 card in itself in only one month?
I have 4 cards that I could pay in just one month...if I didn't have to pay the others...
So I'm wondering how damaging it would be...
To skip paying all the cards next month...and pay one of the off completely.
Then the next month or two make the minimum payments and larger payments on the higher balance cards.
Then after a few months...not make any payments on a card and completely wipe out another card in a month?
How detrimental to not make at least the minimum payments?
Very. Your credit score is based, among other things, on being able to pay creditors in a timely fashion. Payments which are 30-days, 60-days, and 90+days late are items that directly affect your credit score negatively. Remember that creditors are looking for creditworthiness in terms of consistency and being able to pay bills on time.
It sounds like you've done a bit of research and you're starting on the right track with the idea of focusing on one creditor (usually the one with the highest interest rate) at a time. Just be aware of what actions you take that can affect your credit score. Skipping a due payment would be one.
The US government passed a law giving you the right to obtain your credit report (not credit score) from the 3 major consumer credit reporting agencies once every 12 months. The website is:
http://www.annualcreditreport.com
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General Facts About Credit Card Application | Credit Card Debt Guide
Credit cards are now more necessary than ever. People rely on them while there is a loan mortgage crisis. This resulted in a major increase of credit card applications, and now they are fairly hard to get. If you have bad credit score, you are very unlikely to get a good credit card offer. Only if your credit score is perfect you are able to get a good credit card without problems, while few people now have perfect credit score. It is very depressing to wait for your credit card application to be processed, not knowing what is going on there. Have you ever had an experience of credit card application when you had to wait for weeks before the answer arrived? If you have, you probably know what I mean.
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