End Credit Card Debt

Question? What makes people keep using them when they see the destruction it is causing?

Many people, mostly younger folks and women, have so many credit cards they end up in severe debt and ruin their credit for many years to come. Credit card applications are mailed out by the tons and people keep activating them knowing the interest rate is or will be up to 20% or higher. Everyone needs at least one credit card and no more than two. You also need one revolving (department store) credit card to establish a good credit history. The limit on the credit card(s) should be no more than 10% of your annual salary and the revolving card half that. Always make a minimum of a double payment on all your credit cards and pay on the due date. Never ever be even one day late. The interest rate and late fees will destroy you. If you are experiencing problems the first thing you need to do is carefully cut the cards up and throw them away. If you can not afford to pay the total monthly bill attempt to get a consolidation loan to get out of debt. The monthly payment will be less than the total monthly payment of all your cards with a much lower rate. Some banks and credit unions will be willing to help you out if they know why you are taking out the loan. Financial debt can create so much strain it can even destroy your peace of mind and your marriage. Don’t fall into that trap.

My question to you is: Why do credit card companies continue to blindly give out credit cards to people without checking their finances?

Does it make sense to you to give a credit card to someone who already has several loans and their combined minimum payments is over 50% of their income? Would any sane person give credit to someone under this situation?

This is exactly who credit card companies go after though. Who's fault is it?

2007-01-21 09:14:22 by thinkaboutit

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Been about 3-4 years of having credit cards and I spent a lot on getting my car fixed, college tuition, payments and what not. I have 4 now and a total credit limit of about 9000. I am maxed out on all of them and I pay a lot of over the limit and late fees. I have cut down my usage of credit cards to bare minimum now. I only use cash or my debit card to make all my purchases. All these late fees, overages are affecting my credit pretty badly. I am still pretty young in my early twenties but I want to get rid of this debt asap and then move on to graduate school and then owning a house. I am decent for somebody my age and have my own car. I can't find a good way to pay off my credit card debt as it seems that they keep piling on the fees every other month or so. Any suggestions on how to get rid of this debt. I don't want to talk to any credit counselors as they seem like manipulators as opposed to helpers to clear credit card debt. Thanks

Been there and can offer some advice.

First step: BREATHE. I am serious. Get yourself in the right frame of mind to devise a plan.

Now. Do you have every card able to be paid online? if not, sign up for online paying. This will help A LOT!! It will also save .42 every time you write a bill.

Next thing is to call all the credit cards and ask for a reduction. Tell them you were offered 0% for 12 month on another card. BTW, if you have, transfer the balance. This will allow you to keep the finance charges at $0 and the money will go towards your mission. Every %age point helps and It does not hurt to ask.

With a notebook and pen, sitting at table with no TV or radio on, write down all balances. Write down which are over the limit and which have been late in the past. Write down your minimum payment on each

Next is the plan of attack. First step is to get everything down from being over drawn. THIS IS A MUST or you will chase your tale. if 2 cards are over, make minimum payments on those that are not to help get the other down.

You will now have to change your life some to help with this. if you can find ways to save money, that can be transfered to your goal, you will be better off.

So where can you save money?
Do you buy coffee from D & D or 7-11? Stop. Start making it. = $1.75 / cup saving
Do you Smoke? Try and quit. $5.00 a pack saving
Buy Lunch every day? Bring lunch. The costs gets cut in half or in full if you eat leftovers.

Basically, you need to know what you buy and how much of it. So for a week, carry a notebook with you and your spouse (if there is 1). Write down everything you buy. When you do your grocery list, by store brands and cut out some of the discretionary stuff. The money saved will be very helpful!!

The plan in action.

You will be making multiple payments every month. Pick a card - I would start with the lowest balance. You have it set up online already so this will make it easy. Every 3 or 4 days, look at your checking account and make it to the nearest 10 by making a payment to your CC. if you 257.35, make a 7.35 payment to bring you to 150.00. You will be spending basically what you would have spent on discretionary stuff. You will not miss it. This will be ON TOPof your normal minimum payment (which is written down because it will change over time BUT not for you).

Attacking all cards at once will not motivate you because you will not see the progress. So just make minimum payments +$5 on the other cards. Think about it as a fight. Would you want to fight 5 people at 1 time or 1 person at a time but have 5 fights? You will lose the fight against the 5 people (probably) but have a chance to win 5 1 on 1 fights.

Here are some other tips:

Loose change - it adds up and usually not missed. Throw it into a jar. At the end of the month, bring it to the bank and make an additional payment.

eBay - have stuff you do not use? Sell it on eBay. make payments with the money received. Garage sales also work.

The overall key though is to decrease spending until you have everything under control. The cards should not even be in your wallet so there is no temptation. They are off limits.

These methods worked for me. I think they will do the same for you.

Good luck.

2007-10-12 07:53:44 by tiger

My dad is a very selfish person and only cares for his foreign brother, whom he sends a lot of money to. He spends alot from his cards, so once he dies, will the children have to pay them off? He says, they will just disappear but i don't believe it.

No his debts will be transferred to his estate. If there is any value there his debts must be paid. Otherwise the credit card companies will just have to write off his debt. If there is a house they could attach a lean to that.

You are not responsible for his debts but his wife is.

2007-07-12 07:23:06 by Aledged

Price: $19.98

I owe $1700 on my credit card. Didn't save anything!!!

2200
overspent at xmas
will probably have it all paid off (assuming no crisis) in August of 2008 just in time to do it all again in November.
I have to find a way to get off this crazy train

2007-12-16 17:53:39 by chanel

My wife and I owe 3,700.00 on our credit card. At the end of January we will have the extra money to go ahead and completely pay off our credit card debt. We will continue to keep the card open and not cancel it but only keep it around for major emergencies only. My question is will our FICO score of be affected negatively by completely paying off our credit card
We owe $3,700.00
Our credit limit is $11,000.00

nope on the contrary your score will increase a bit because by paying off the debt you'll lower your 'debt to income ratio'

2008-10-13 16:25:41 by DreamOutLoud