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Getting Rid of Credit Card Debt
Posted on 8/15/19 at 11:29 am
Posted on 8/15/19 at 11:29 am
Backstory: After our 2nd child, wife and I never really sat down to rework our monthly budget with the added cost of a second child. Got into some bad habits of trying to put everything we could on the credit card to try and maximize our points. Ended up with close to $15k in CC debt. We have since cut off the credit card use and went back to operating strictly from the debit card. Got our budget under control and paying about $600/month to the credit card to eventually erase the debt.
Any recommendations on how to erase the debt quicker or more efficiently? I have been reading Dave Ramsey's steps to get out of debt. I have also been getting mail from Goldman Sachs about personal low-interest loans but I've never known anyone who has gone that route.
Any recommendations on how to erase the debt quicker or more efficiently? I have been reading Dave Ramsey's steps to get out of debt. I have also been getting mail from Goldman Sachs about personal low-interest loans but I've never known anyone who has gone that route.
3
Posted on 8/15/19 at 11:34 am to Herbert I McDunnough
sounds like you are on the correct path. Having a plan and sticking to it is the best solution.
Other options would be rolling it into a card offering a lower or 0% interest rate.
You could always consolidate your debt with a loan. If you have any equity in a home, you could do a cash out refi. If you go this route, use someone you trust and triple check the math.
I wish you and your family the best, unfortunately there are people out there with a lot more than $15K
Other options would be rolling it into a card offering a lower or 0% interest rate.
You could always consolidate your debt with a loan. If you have any equity in a home, you could do a cash out refi. If you go this route, use someone you trust and triple check the math.
I wish you and your family the best, unfortunately there are people out there with a lot more than $15K
Posted on 8/15/19 at 11:43 am to good_2_geaux
I know. I feel like we were lucky to catch it when we did but yet I feel bad because we had to tighten our budget significantly over the past year or so. Not as much eating out, vacations, etc.
These scare me because it feels like I'd be sinking us even further down. Just don't know anyone with experience with these. Aren't there people that help with debt consolidation that can possibly negotiate a better interest rate?
quote:
You could always consolidate your debt with a loan.
These scare me because it feels like I'd be sinking us even further down. Just don't know anyone with experience with these. Aren't there people that help with debt consolidation that can possibly negotiate a better interest rate?
Posted on 8/15/19 at 11:51 am to Herbert I McDunnough
Was it ever sent to a collection agency? Are the accounts closed?
I know if it went to a collection agency you can is usually negotiate with them to just pay half. But be careful and get everything in writing.
I know if it went to a collection agency you can is usually negotiate with them to just pay half. But be careful and get everything in writing.
Posted on 8/15/19 at 12:21 pm to Herbert I McDunnough
quote:
These scare me
do you have equity in a home or auto? Nothing to be scared about. Instead using the equity of ~$3000 to go towards closing costs, you're taking additional $15000 to pay off your credit cards.
Rates are low. If you have a mortgage or paid off home, its not a terrible time to go this route. Can do the same with a vehicle loan.
Posted on 8/15/19 at 1:20 pm to good_2_geaux
We are only into year 3 of our mortgage and year 1 of our only car note.
Posted on 8/15/19 at 1:24 pm to Herbert I McDunnough
quote:
We are only into year 3 of our mortgage and year 1 of our only car note.
What % did you put down on the house?
Doesn't sound like there will be an easy way out of it for sure
Posted on 8/15/19 at 1:36 pm to Herbert I McDunnough
quote:
Aren't there people that help with debt consolidation that can possibly negotiate a better interest rate?
Never used one, but I'd be weary about doing so. I've read some shady things about them.
Have you tried calling the CC company, or companies, and explaining the situation to them to see if they'd knock a few points off the interest rate? I had a CC company right after college agree to lower my interest rate and worked with me on a payment plan to pay it off. I agreed for them to freeze the account so I couldn't use the card, and set up a monthly auto-payment with them.
Other than that, your best bet is playing the 0% balance transfer game.
Posted on 8/15/19 at 3:14 pm to Herbert I McDunnough
What's the interest rate on the card/cards, and what's your credit score? Are you late on anything.
The traditional methods to pay off debt include a side hustle and selling stuff you don't need.
95% of what is called "debt consolidation" is bad news. It usually involves lots of fees and them taking your money and not paying your debt.
Now, you mentioned Goldman Sachs, I'm guessing it's an offer from Marcum. IF you can find a legit personal loan with a lower interest rate than your cards, and no prepayment fee, then you could borrow on that, and pay off your credit cards, and then just pay back the loan.
Doing that may allow you to pay off the loan faster and have less interest.
But beware... you gotta stay off the credit cards. You have to fix your behavior. It seems like you may understand that.
But if you run the CCs back up, now you are in even more debt.
You could also try to negotiate a lower rate with your current cards, or play the 0% transfer game.
The traditional methods to pay off debt include a side hustle and selling stuff you don't need.
95% of what is called "debt consolidation" is bad news. It usually involves lots of fees and them taking your money and not paying your debt.
Now, you mentioned Goldman Sachs, I'm guessing it's an offer from Marcum. IF you can find a legit personal loan with a lower interest rate than your cards, and no prepayment fee, then you could borrow on that, and pay off your credit cards, and then just pay back the loan.
Doing that may allow you to pay off the loan faster and have less interest.
But beware... you gotta stay off the credit cards. You have to fix your behavior. It seems like you may understand that.
But if you run the CCs back up, now you are in even more debt.
You could also try to negotiate a lower rate with your current cards, or play the 0% transfer game.
Posted on 8/15/19 at 3:22 pm to LSUFanHouston
I think I may go with the negotiate a lower rate option. Anyone have success with this? What department at Chase would I contact? How should the conversation go?
Posted on 8/15/19 at 3:26 pm to Herbert I McDunnough
quote:
I think I may go with the negotiate a lower rate option. Anyone have success with this? What department at Chase would I contact? How should the conversation go?
That would depend if you are past due or not.
If you are current, or barely past due, ask for customer service. Ask for a specific rate. Do some research on your credit score and see what you might get from other companies.
If you are behind, ask to speak with someone who can work out a payment plan for you, with a reduced rate.
Posted on 8/15/19 at 4:45 pm to Herbert I McDunnough
only two things really work...lower your interest rate(s) and increase your monthly pay-down. find a way to do both and stick to it
sell some shite
drive for uber
cancel cable/satellite/netflix
etc
15K shouldn't take too long, maybe a couple years max.
sell some shite
drive for uber
cancel cable/satellite/netflix
etc
15K shouldn't take too long, maybe a couple years max.
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