Credit Card Debt In New

I have 2 credit cards and they're not even that much. I've been paying every month to reduce the balance but after interest charges, it seems to go straight back up. I recently checked my credit score, and it's in pretty OK shape. I know if I get another credit card, my credit limit will be enough to cover for both debts. My plan is to just get a new credit card with no interest for one year and pay them off then cancel my other 2 credit cards.
Is that a safe idea? Will it affect my credit score (negatively) that much to do so?
Thanks.

If you have the option of transferring the balances from the other high interest credit cards to one with o interest for one year then do so.You will be saving a ton of interest payments.Do not however cancel the other two credit cards even if you never use them again in your life.They way they go about calculating your credit score is based on how much credit you actually have versus how much you owe.Every card has a credit amount and it goes up as years go by.

2007-10-11 15:11:44 by Reggie

The Get Out of Debt series was part of a five-city tour stopping in Philadephia, New York City, Dallas and Chicago. Matthew Sapaula appears on the ...

I'm pretty close to the maximum limit on my credit card (I owe $7,200 and the limit is $7,500). I've already cut up the card and changed my spending habits and I'm pace to pay it off over the next 12-18 months. Problem is, the interest is killing me. If I pay the minimum monthly balance of $300 then the next month I get charged $200 in interest, so my monthly payments are barely chipping away at the balance. Is it smart to apply for a new card with zero interest on balance transfers and transfer my balance? If I could get 12 months of no interest then I could bring the balance down significantly and get close to zero, but I hear that doing this affects my credit score, at least during the short term. Should I stick with my card?

Eliminating high interest credit cards by transferring to a card with a lower rate can help you save a great deal of money, allowing you to regain control of your finances. However, it is important that you understand all of the terms and conditions of your new credit card before committing enrollment. You want to make certain that the card offer is fair and that you are truly going to benefit from it. Featured are tips that will help you choose and use the right credit card for transferring balances.

Pre-determining interest rates

Most balance transfer offers are good for only the first 6-9 months of enrollment. At the conclusion of the introductory rate, the card will convert to a more standard rate, typically between 14-20%. It is important that you determine what the interest rate is going to be once the intro rate is over. If you are not sure what interest rate the card is going to be charging at the conclusion of the intro offer, call the issuer and find out. Read more about it at: http://www.credit-card-gallery.com/artic le/173,Credit_Card_Balance_Transfer_Tips

2007-04-10 10:00:14 by Andrew

I have lost my career, and have been trying to pay off these credit cards. The balances just keep going up even though I am not using the cards and I am very far behind. Is there any hope on the horizon

Resident state law is irrelevant in limitations as the contract is based on the laws of the state were the creditor is incorporated (usually Delaware). This usually means that in essence the creditor is limited to collections efforts as indicated by the FDCPA. Basically, they can attempt to collect the debt. Usually companies are limited as to how long they can carry the receivable on their own by FASB accounting regulations...so they will charge it off after 185 days. At that point a collection agency will likely buy the debt and start more hardcore collection efforts. In addition to ruined credit, you will be subject to collection calls (they can do it every hour with no contact, once a day with contact made), dunning letters, and asymmetrical collections (calling you at a grocery store or bowling alley). In any event, the creditor and/or the agency may file a lawsuit that could result in a lien or wage garnishment. That usually depends on the debt value. One thing that is becoming common is the debt value being reported to the IRS as income (I think its taxable at the 40% bracket, similar to bonus income). Where residing stare law comes in (in your case, NY) is the collection efforts themselves. You can issue what is known as a Cease and Desist Letter in NY that will prohibit the collection agency or creditor from calling you on the telephone. The downside is that they will then demand the debt upfront in a letter and the liklihood of a lawsuit is higher. In any event, collections are not fun for both the collector and debtor. Having spent time on both sides, I would advise through the course of the calls to speak with an intelligent sounding collector. Their job is to collect, but they are people too and if you are nice to them and sound like you want to work with them they will likely offer you a break. Most companies make these "breaks" available in the form of reduced interest, payments etc if you are willing to work with the collector. It may not be enough at the end of the day...but at least it can let the company know you are trying to work with them. More importantly...in a lawsuit situation it would appear like you were actively trying to find a solution. At the end of the day, the company wants to recoup their principal spent in a situation like yours...working with you is in their best interest in most cases. I hope this helps.

2006-05-27 22:15:05 by connie111

Price: $6.99

I have about 25K in credit card debt. I am planning to buy a 540K house. Currently I have great credit, is it possible to add my credit card debt into the home loan in order to make it a single monthly payment. What is the loan program called? I am shooting for 5 yr. ARM. Me and my wife plan to live there for about 3-4 yrs.
To add I mean to pay off my credit cards with the home loan.

I doubt there is a loan program around right now that will lend over 100% of the homes value on a home purchase. You can sometimes get them on refi's but they are usually loans that are attached to some type of construction or major improvements.

Value is determined two ways:
In a purchase, the Purchase price or the appraised value- whichever is LESS.

In a refinance- the appraised value.

If this is new construction, the home is probably worth alot more now than when you purchased it. You should have a lot of equity.

Right now, prices are not going up as much as they were, so if this is existing construction, you may have to wait a few months until you have enough equity to pay off the debt.

If you have cash in the bank, try to pay off that debt and get a second mortgage instead of putting that additional money as a down payment.

You can also wait until you close your loan and refinance with a second mortgage paying off your debt- provided there is enough equity in the house.

Sorry to burst your bubble, but let me show you from a lenders perspective.

You have $25,000 in Credit Cards and the average interest rate is probably 15% or greater. You are buying a house that the value is $540K, you want them to lend you $565K for a house they know is only worth $540- at an interest rate of about 6%- less than half of what you are paying on the credit cards now.

If you were to default on the loan, you get to take all the furniture, clothes, handbags, etc that you paid for using the credit cards, however they can only reposess the home that is worth $540K. If they sell it at auction for the full price of $540 (which is doubtful) they would be at a loss after the Realtor takes the standartd 6% commission (approx $32K). That leaves the bank with getting $508K for the house at best, before fees.

This is obviously not a favorable investment for them.

2006-08-01 23:21:49 by Mak

Ok so the deal is im looking at a house its about 89,999 and have under 10 grand in cc debt. Is there a way I can combine this so I have one payment?

Yes there are ways you can add your other debts into your mortgage, there are other factors that come into play as well though, such as interest rates and whether or not you can afford the monthly payments for the consolidation! Theres a debt consolidation calculator on http://www.eastwestbank.com/English/java /Consolidate.html that will help you factor in everything. At the point it will give you a projected monthly payment and will help you determine if a consolidation is right for you!
God Bless!!

2008-07-26 08:57:04 by Mike, Mike O