Line Of Credit Debt

What is the best way to pay off a $7,000 debt on my Line of Credit? I used it to pay off my Credit Card bills on the most unexpected repairs and other unexpected expenses. My interest charge is 5.75% and I find it hard to pay that off. Is there another way to pay this off with lower interest payments without owning any house or properties?
Thanks Patricia, I'll be looking into those ideas.

Hey Tim-

Congrats on making a smart decision to pay off your $7,000 debt on your line of credit. Although the 5.75% is lower, likely lower than you previously paid, you probably want to get rid of the debt as soon as possible. the good news is that there are many ways that you can pay off the line of credit debt.

Here are some of the most common:

1. Ask for a raise. You could ask for a raise from your boss and then apply all of the funds to paying down the debt.

2. Get a new job that pays more. Find a new job and then apply the bonus and additional payment to paying down your line of credit debt.

3. Start a home based business. You could start a home based business and apply all of those funds to paying down your debt. Some great businesses to star would be selling items on eBay, internet marketing,etc. One site that lists all kind of ideas is the Chicago Work at Home Examiner site.

3. Get a government grant. You could also seek small government grant specifically for debt reduction. Note that these are difficult to obtain and there are a lot of scam artists out there so be careful. One great site to check out is http://debtreliefgranthelp.blogspot.com/ as they lists a ton of information about debt reduction.

4. Cut expenses. Get on a budget and cut expenses. Then, you will apply all saed money to paying off that line of credit.

Either way, if you are committed and serious about getting out of debt and work hard, you can most certainly do it. Good luck.

2009-09-21 08:40:14 by Mr. Freeman

A business line of credit is important for businesses that need to protect cash flow. Learn about business lines of credit from a registered ...

I have only one negitive on my credit report, 90 day late payment on a student loan from 2003. The loan has been payed in full for over a year now. But, I am unable to get a line of credit to consolidate my debt which is minimal. What options are out there? I am currently on a waiting list for housing and my number should be up in a year and a half. I need to get rid of my credit cards and put together the down payment for my place in this time. Any suddgestions?

to start the process of buying a house this is what I did:
To boost your credit score:
The first thing you will need to do is call the three major credit reporting agencies and request a free copy of your credit report.

www.equifax.com
www.experian.com
www.transunion.com

Then once you get those in the mail (7-10 days) there will be a dispute form attached to the reports. Fill those out for every negative account on your report regardless. Fax, mail go online whatever it takes to get those submitted as quickly as possible. Then those companies must answer your dispute within 30 days or it is removed from your credit report completely. So that will eliminate some things, hopefully.

Then make sure you pay all your revolving accounts to below 50% of your credit limits.

Make sure that you make all your payments no more than 20 days from the date it is due.


Good Luck!

2007-05-01 20:40:19 by d m

Price: $75.00

my credit is bad and a loan would really help. i would like to pay off somethings and consolidate the rest, what can i do? Why can't the equity in my home speak for itself, i've never refinanced?

A couple of years ago, the equity in your home would've been good enough, but not today. Since no investors want to go near real estate these days, and with homes falling in value daily, the "equity" in a home is relatively unknown. There are millions of people bailing on their mortgages and the lenders are stuck with the houses. They don't want to own houses.
I sold my house last fall. I had it on the market for about 7 months. I was still able to afford it, but I was sick of feeling "house poor" as I wasn't really able to save money, and wasn't able to put enough money aside for future repairs (which is essential if you own a home because things will always go wrong). Selling it was the best thing I've ever done. I'm renting a house of similar size in a nice neighborhood, and it's costing me $1000 less each month than the house I owned! And I bought my house before the bubble.
Today, frankly, your options are limited. An equity loan might be a good deal if you can get it and the interest rate is less than you're already paying. However, if you're already in debt, I can't imagine that an equity loan would help your situation. Worse, if you're not able to pay that loan, you can lose the house, and since you bought it in 1998, you should have a lot of equity in it. Have you considered selling it? I know that the market is not great, but in my area, I've noticed houses selling in about a month. And not owning a house has been a tremendous relief for me. If the roof leaks, I don't have to worry about paying for it! Also, it's better to be in control than have the bank in control. Home ownership is WAY overrated. The mortgage interest these days alone is more than rent, and then there's insurance and taxes on top of that. It's a really bad deal.

2008-09-16 11:07:36 by inabind

Price: $5.95

We used 98 thousand out of 120 thousand line of credit to do major home improvements. We are very happy with the improvemnts but now have about 700 dollars per month in interest only payments. My husband wants us to also have a savings account filled up with funds in case of emergency. I think we should dump any extra money into the home equity debt which will SLOWLY lower our debt and payment amount. Then, if we ever have an emergency we could draw from the home equity loan. What do you think we should do?

I agree that it makes little sense to be paying 8% on your line of credit, while earning 2% in your savings account. That being said, as long as you are certain the line of credit can't get closed on you for some reason, you should pay down the line of credit. You will save money in interest, and hopefully be able to start paying down your line of credit.

Interest rates have dropped lately, it might even make sense to refinance and roll that line of credit into a new first mortgage. I'd assume that even if your rate is Prime + 0%, you're still at 8.25%. First mortgage rates are about 2.5% less than that right now.

2006-12-05 13:07:42 by marcy

Can credit card companies lower your credit line significantly so that your debt-to-limit ratio is higher, for no particular reason and without warning?

Unless you break the rules of your contract they can not. If you do break the rules, by paying late or something like that they may be able to change your credit limit. However, I serioulsy doubt they would. They would just probably raise your rates.

2007-04-02 07:43:19 by lindseykhayes