Drowning In Credit Card Debt

Im in about 18,000 dollars in debt, my payments are about 450 a month in minimum payments. I make 8 dollars and hour raising a 15 yr old daughter. I no longer purchase anything on the cards, I just want to pay it off. i am despartley afriad of my credit being ruined because I dont have any social security or any income for when Im older, and all Ill have is my credit. Ive never been late on paying, but my card payments have come first before gas money and food. Im so scared and drained. Should I just consolidate and pay whatever I can...or should I keep struggling and paying them first and pray I make it till they are paid off? Right now my income is less than my bills and im just drowning more and more. Ive always been proud of paying my cards on time and in full...but in the long run its effecting my rent, food, bills....The reason the amount got so high was that I was out of work and it was put the rent on the cards or become homeless. What can I do?

Don't panic. You need to deal with this problem like all problems in life with calm and confidence.

If your income is less than your expenses there is no way you can get out of debt. So, first step. Is it possible to cut down your expenses? Evaluate the following home rent, expenses for cable tv, internet connection, mobile phone, long distance telephone provider and other utilities- do they all cost the lowest rate possible.

If not shop around and get the best deals. If you call only one or two people frequently then switch to some connections like friends and family which give you the lowest rates for 2-3 phone numbers you choose. Cut down on things you never use or which can be postponed. If you don't use your internet connection - get it disconnected. You don't need the cable connection - get it cut too. Till you are firmly back on your feet you may have cut out some luxuries.

Call up your credit card company and ask them if they will lower your credit card interest rate. As you have good record of paying on time they will surely consider your request. A lower interest rate is like getting a cash back. For example on your debt of 18,000 dollars at 20 percent interest you will be paying 3600 dollars per annum in interest alone. Cutting down the interest rate to 10 percent can bring down your interest to 1800 dollars. That means you save 1800 dollars in interest which you can use to pay your principal. If you promise to pay on time they may even waive your late fees. So, make that call to your credit card company. If you have more than one card then transfer your debt to the lowest interest card, that should also save lot of cash.

Can you get another job? That should help you go a long way in cutting down your debt. If you daughter can pitch in by earning a few extra dollars through some baby sitting or cleaning neighbors yards that should help too. Many such jobs will be posted at the local supermarket.

Is it possible to get a raise at your current job? If not try to find a job that will pay you more. Most important don't lose your confidence. You have done a fine job till now with a little help you would definetly do better.

You should also go to debt counselors who will give you more advice on how to tackle your debt with the income you have.

Best of luck.

2006-11-11 11:57:50 by Becksterincali

www.cafepress.com Urgent! Millions are drowning in credit card debt. You can help! Imagine you have over extended yourself and fallen into a deep ...

My husband and I have racked up $12000 in credit card debt. He has $48,000 in his 401K. We're young...and the interest is only climbing on our credit card debts. I feel like we're getting nowhere. Why can't we tap into a portion of that to clear our debts? Isn't there a loophole or one time allowance? I've heard that if you're about to forclose on your home you can access it...but who wants to get to THAT point before getting help?
Richard B...it's $12,000...not $120,000. It was accumulated paying for college (what loans would not cover)
snvffy...I went to Dave's website...if I can't pay my bills...how could I pay $90 to get his advice??

debt consolidation

getting out of debt is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is:

http://umgarticles.atspace.com/debt-cons olidation.htm

2006-07-23 13:42:58 by mama barney

Price: $27.95 $27.95

I am drowning in credit card debt and I am looking for help other than bankruptcy

If your drowning in credit card debt, have you looked into credit counseling? Do you own a home that you can refinance and pay off some debt? If you don't own a home, credit counseling may help, but you may or may not be able to buy a home until it has been paid in full. Some lenders still consider it a risk and a bankruptcy. But you should not have as much of a negative impact on your credit that a bankruptcy have.
I included a link below, give them a call and see what they can do. It doesn't hurt to ask. Or you can look in your phone book for a credit counselor closer to home.

2006-07-07 01:08:53 by Hector A

I know it is my own fault for racking up the debt, but I want out! I do not own a home and cannot get a loan to help consolidate it. What can I do? I do not have any extra money each month to pay on them, at least not enough that it isn't eaten up in finance charges. I have good credit otherwise, I have never had a late payment. I have considered credit counseling, but I just don't know how that will affect my credit. Help!!!

If you are able to make your payments today, then you are still ok.

Do three things:

1) Find a way to cut your monthly expenses by $100. Eat cheaper food, drive less, don't buy new clothes for a while, whatever. Just cut your expenses by $100.

2) Take that $100 and apply it, in addition to the normal payment, to the LOWEST BALANCE card you have. Don't worry about interest rates or anything, just identify the lowest balance card you have and work on it first. Get that one paid off. Then, take that payment and apply it to the next lowest balance, and so on.

3) Get a part time job. Take the extra income and apply it just like the $100. With a little work, you should be able to come up with at least another $200 per month by working part time. That gives you $300 per month to work with.

Stick with this, and you will be seeing the "light at the end of the tunnel" before you know it.

2007-06-01 12:22:05 by Orchid0307

We have a friend that told us just the other day that her and her husband are drowning in credit card debt. He earns a good living and they are both super cool people. But she said they pay $2500 - $3000 a month in credit card payments and have over $100,000 in balances. I honestly couldn't believe it.

My first suggestion was to consider bankruptcy, but she was 100% against it. I also heard about debt consolidation clinics. But they advise you NOT to pay your debts for months at a time, then negotiate a lower settlement so that the credit card companies can avoid writing you off as a loss. But this ROYALLY screws up your credit as you can imagine!

This situation got me and my wife thinking, as we have our fair share of credit card debt as well. So besides refinancing your house for the 5th time in 5 years, borrowing money from Aunt Edna, or making minimum payments for 60 years, what is the best way to get out of credit card debt???

Stop using the card altogether. Stop buying unnecessary things. Sell everything you don't need. Take proceeds and pay off debt. Budget yourself frugally.

You can also contact the credit card companies directly to negotiate a lower fixed fee. If you are always on time with payments, lenders have a vested interest in keeping you solvent. The more you are able to pay and not declare bankruptcy, the better off they are. My experience with Amex was good on that front since I have had a card for 10+ years and told them I was thinking of transferring balances to a 0% APR promotion, so they lowered the rate for me.

2007-08-18 07:21:15 by