Comments on: Different Ways to Pay Off Credit Card Debt

By: ashieannie

ashieannie — Thu, 24 Sep 2009 01:47:37 +0000

If I may make a suggestion – Don't do the consolidating….. to my understanding they basically tell your creditors that you can't pay them, but if they do a settlement they will get paid now and the creditor usually agrees, but marks it off as bad debt or something like that and closes the account…. or something like that…… I did hear it hurts your credit score big time……..

I suggest contacting a credit counselor (a non profit one) or even contacting Suze Orman at http://suzeorman.com and she will be glad to help you……… But from what I heard (and if I remember right it was on a episode of Suze Orman which airs Saturday nights on MSNBC that it does hurt your credit if you consilidate……

Also, to pay them off quickly…. start with the one with the least amount (lets call this card 1) and pay extra on that one….. once paid off and if you can afford it take the payment and if possible the extra payment that you would have paid on Card 1 above and apply it to your next card with the least amount, etc, etc….. until all is paid……

Hope this helps…….

By: coronet67

coronet67 — Tue, 22 Sep 2009 22:06:43 +0000

U is smart.

Them is sum smart thing you is sayin.

How does that “eliminate debt”?

By: Why would they name me Barbie?

Why would they name me Barbie? — Tue, 22 Sep 2009 19:37:06 +0000

The numbers you are telling us means you are paying 24% interest on the card. WAY TOO MUCH! What is the matter with you?

On the good side you are paying it down a lot every month. Keep that up and you will have it paid off in around 24 months, not 10 years. You just have to stop adding new stuff to it every month.

If you are charging $320 in new bills each month then you will never pay it down.

Your credit score is high and you can probably get a card with a better rate. Some cards give you a good rate on transferred balances.

So, what do you do?
-Stop using the card for anything.
-Keep paying the $500 a month.
-look for a card that will let you transfer the balance at a 9% rate or lower.
-use your tax rebate to pay down the bill.
-do you really need two cars?
-and, of course, get another job.

You said some of the debt is for school. Is the school going to help you get a better job? If so, then the answer is different than if the school is not going to help in that area, why are you spending the money?

Hope that helps.

By: whitecollarcriminal

whitecollarcriminal — Tue, 22 Sep 2009 11:19:59 +0000

I paid off my credit cards after seeing this guy’s other video.

I don’t mind having a luxury car debt or home mortgage (which is ironically, alot higher) but I paid off my cards when I really figured out how bad I was getting fucked.

By: half2005

half2005 — Tue, 22 Sep 2009 10:05:24 +0000

Reena almost has it right. The only part I don't agree with is taking the highest balance. IF you take the highest balance, it will take much longer to free up the cashflow to get cracking on the next one. The best way to pay off debts is to free up as much cashflow as possible to pay off the debt.

Start with the smallest balance, and clear that one up first. This will not only give free'd up cashflow to put it on the next balance, but it will also give you a sense of accomplishment so it actually looks like you're doing some good. The key is to continually keep your monthly payment total the same, you're just shifting the payments from one to another as you pay each one off. And yes, once you've paid them all off it's best to move those same monthly payments right into an investment of some kind. You're used to making those payments anyways.

Starting with the smallest balance is what almost any professional I've ever talked to has suggested.

If it's all on one card, free up as much cash as you can in your budget and pay as much as you can on it. That's the only way to do it.

By: bugsycline

bugsycline — Mon, 21 Sep 2009 22:07:32 +0000

this is such bullshit.

if you don’t take out a loan, you don’t have any debt.

duh!

By: Sophie

Sophie — Mon, 21 Sep 2009 15:34:12 +0000

Your credit card companies are not going to offer you settlements if you are current (not behind) on your payments. If credit card companies offered settlements to people who are current on their payments, then everyone would be calling them up and asking for settlements.

They will only negotiate on accounts that are at/near default. Any settlement for less will be a negative factor on your credit score.

If you want to take the risk, you can deliberately let all accounts default and charge-off to attempt 50% settlements. This is what debt settlement firms do. This tactic is risky and may backfire…resulting in a court summons….leading to a judgment and wage garnishment.

By: nick3939393

nick3939393 — Mon, 21 Sep 2009 15:21:18 +0000

scam

By: LocoPCtheoneandonly

LocoPCtheoneandonly — Mon, 21 Sep 2009 12:37:31 +0000

Pay off your credit card debt by cashing in your investment one week before your credit card low interest rate expire!!!

KITE the credit card companies before they get all absorbed (nationalized) therefore before government finds a way to pin you down to your debts for life

By: PiNKiCE

PiNKiCE — Mon, 21 Sep 2009 05:34:29 +0000

By: iN 2 DEEP

iN 2 DEEP — Mon, 21 Sep 2009 01:55:29 +0000

Debt consolidation is also provided by credit-counseling firms. These firms will total up all your monthly debts and let you make one payment to them. With this amount, the firm will pay the lenders till the entire debt is cleared off. But exercise caution while selecting a credit-counseling firm, since some firms do not offer free services. People who have utilized debt counseling will assist you in choosing the right firm. The other option is to go for a debt consolidation loan that has quite a low interest rate.

By: bugsycline

bugsycline — Mon, 21 Sep 2009 00:21:42 +0000

wanna eliminate debt?

just don’t use a credit card.

use cash

only spend what you have.

By: LocoPCtheoneandonly

LocoPCtheoneandonly — Sun, 20 Sep 2009 23:59:47 +0000

KITE the credit card companies!!!
1. apply for another card at the same credit card company (ensure card 1 is fully paid)
2. the ‘new’ card will carry a minumum of $ 5,000 credit limit
3. ask the credit card company to ‘consolidate’ card one credit limit onto the newly issued card two
4. close down card one

I was able to increase my $ 50,000 maximum credit available to a whooping $ 75,000 … used it to pay off ‘purposely created debt’..which I use to invest
a a high rate at another bank

By: Alicia

Alicia — Sun, 20 Sep 2009 23:40:31 +0000

Look into debt consolidation, but if this is your only card, then see if you can get another card with a lower rate and ask if you can transfer the balance.
NEVER use a CC for a purchase that you can't pay for by the end of the month. No point in getting a good deal on a purchase if you take many months to pay it off.
Paying CC interest is the same as burning money. I was young once and in that same boat. I wasted sooo much $$ in interest…

By: Why would they name me Barbie?

Why would they name me Barbie? — Sun, 20 Sep 2009 16:32:48 +0000

Call the credit card company and see if you can make some type of agreement to get the interest rate lowered. If you have good credit and are on time paying your bills, you might be able to get the rate lowered. You could also go to a local credit union – talk to someone about a personal loan. Much lower interest rates! Plus – maybe you can sell one of the used cars – do you really need 2? For school tuition, you should look into student loans – payments are deferred until after graduation and interest rates are extremely low. Don't transfer this to another credit card – you'll just bury yourself even further.