There%26#039;s about 16,000 dollars in credit debt that we owe. We currently pay 2000 a month towards it, which is well above the minimum payment. At this rate it will, of course, take 8-9 months to pay off. It would be nice if there was another way to make the debt or the interest lower. We call the companies and ask them to lower the interest rate, and they do, but then raise it back up the next month. Transferring the debt to another credit card is not really an option we are willing to take. Does anyone have any direct experience with this?
Is there a way to get rid of credit card debt (or lower it) without it harming my credit in anyway?
you are doing the right thing by paying more than the minimum payment every month, just keep calling every month and ask them to lower the interest rate, always ask for the supervisor when you call and also ask for his or her name or a confirmation # when you call, just don`t give up.
you are doing great.
Is there a way to get rid of credit card debt (or lower it) without it harming my credit in anyway?
Check out: http://www.bluechipdebtrelief....
They talk about debt consolidation loans and other alternatives. Report It
Is there a way to get rid of credit card debt (or lower it) without it harming my credit in anyway?
Use a home loan... the interest will be less and you can write it off.
Is there a way to get rid of credit card debt (or lower it) without it harming my credit in anyway?
You can use your equity in your home to pay it off (if you have any).
You can also do debt consolidation through your bank. They will pay off your credit card debt in turn for a loan and a (usually) lower interest rate.
Is there a way to get rid of credit card debt (or lower it) without it harming my credit in anyway?
visit dave ramsey.com to learn how u are shooting ur self in chose a body part.
pay the slavery debt off don%26#039;t worry about ur %26#039;i love debt%26#039; score.
Is there a way to get rid of credit card debt (or lower it) without it harming my credit in anyway?
1. If you go %26quot;Credit counseling%26quot;, your credit WILL be hurt despite their claims. Not major damage, but this is considered a %26quot;Settlement%26quot; and the credit card company is %26quot;taking a loss%26quot; and therefore they will report it to credit counseling.
2. If you go bankruptcy, you are pretty much 90% free from the debt obligations (with certain conditions - see an attorney about it), but your credit score will get seriously smashed for a good 1 -3 years. Then you start getting some credit card offers in the mail, usually atter 1 year. Then you use them wisely and credit gets re-built slowly, but surely. Happened to my in-laws. Trouble here is that if you do a banky, then you will have a nasty nasty time buying your first/next home. If you live in a liberal state, creditors can force a sale of your home even with a bnkruptcy. If you live in a conservative state (like Texas or Florida), then your home is %26quot;homestead%26quot; and is 100% protected from civil liens (other than the tax man and the mortgage company, of course). See why OJ Simpson has a civil judgement agsinst him for the murders he committed and yet doesn%26#039;t lose his home in FL? That is called %26quot;protecting one%26#039;s home from creiditors and scumbag trial lawyers%26quot;. ^_^
3. You can call the bank if you are already late on payments and get a settlement offer from them. You call after being late and say %26quot;look, I got (for example) $5,000 from my grandma who died. I would like to settle this account and pay it off, but this is all I have. Would you be willing to settle the $16,000 debt for $5,000? Yes, this is a 1/3 of the amount settlement, but depending on how late you are, they might take it. What hurts here besides settling and them reporting it, is that 99% of credit card companies do NOT allow you to do this unless you are at least 60 - 90 days late. That way this prevent slick people from buying a $15,000 car using their credit card and then hitting the credit card company with a settlement and saving thousands on the car. If you are 60+ days late, then you automatically get reported to a credit reporting agency (like Equifax, TransUnion, or Experian).
Now as to the reason as to why they lower interest rate and then raise it again... well there is this trcik the credit card companies use to hit you with these high rates, EVEN IF you do not make a late pmt. The trick is, they check your credit report every so many months and if they see a lot of your other credit cards (even if not late) are almost maxed out in their limits, they rate you as a %26quot;high risk%26quot; customer and raise your rate. This is actually LEGAL and is in the credit card use terms and conditions %26quot;Card Agreement%26quot; you got with the new card and probably threw it away w/o ever looking at it. I used to work for a credit card company, and I know their schemes.
Transfering sucks because there is a Balance Tranfer (BT) fee, which USED TO BE 3% of the amount with a $5 minimum fee and $25 maximum. Now they usually charge you something like $15 minimum, no maximum, of the 3% fee of balance tranferred.
I honestly WOULD tranfer to a lower rate, if this is possible because the balanceof $16,000 is so high. If the BT tranfer rate is let%26#039;s say 6% fixed for the Life of the Loan (LOL) and your current $16,000 credit card rate is let%26#039;s say $12%, you can save a ton (1/2 the money you%26#039;d pay in interest in a year would be your savings in this case). The trick is that when you tranfer the balance, you have to 1. Discipline yourself NOT to get into debt again - stop eating out, buy clothes, etc. 2. Not use the card you did the BT to. Why? Becaus erates for purchases is HIGHER than the rate for BTs. And credit card rules always say you pay the balances with lower APR (interest rate) first and higher rates go last.
So if you tranfer the $16,000 into the new card and make purchases with the new card, you will get hit with a higher rate for purchases (which you pay last), you will have those purchases rated at a HIGHER APR than the BT you did. So be smart and don%26#039;t use the BT card for purchases, just the tranfer. Oh and if the BT card has a 0% for 6 months rate and a 5% fixed for the Life of the Loan, and you know you can only pay this card off in 8 months, it MIGHT be worth it to go for the 0% for 6 months and pay for 2 months of interest (which will probably go to 9% - 12% after the 0%). If you know you can only pay off in 2 years, go for the fixed 5% rate because it will pay off in the longer run.
Doing a BT does NOT harm your credit, you pay what you used, the interest is lower, which saves you $$, life is good. ^_^ I%26#039;d go for the BT if you can.
Hope this helps!! ^_^
Is there a way to get rid of credit card debt (or lower it) without it harming my credit in anyway?
You are doing the best thing right now. Don%26#039;t listen to stupid people who tell you to use your mortgage to pay off debt. Why turn a 8 month debt into a 30 month debt? Why risk your house for a debt that you can and are paying? Anyways, you can only write off a small percent of your interst on your taxes. Just about anything else you do will ding your credit score.
Is there a way to get rid of credit card debt (or lower it) without it harming my credit in anyway?
You pay 2000 a month which is well above your mininmum balance but it is not the full amount so interest is getting accumulated on it. Try to go for debt consolidation from a reputed organisation who are BBB registered. They will lower your payment each month. Or you can go for some other loan and pay all your bill in full and then slowly pay the loan which will normally have low interest rates than credit cards.
To know more you can visit
http://www.debtmanagementguru.blogspot.c...
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