Credit Cards Debt?

[happyapple]

I been trying to find solution on how to pay off my credit cards debt, because I have been trying to look for a good offer to transfer my high balance over. Does anybody have any recommendation? Thanks.

[Darlene M]

It really depends on how much debt you have.Do you own a home?If you do...a line of credit might be just what you need. I am a mortgage broker and I can tell you that usually a home equity line of credit will cut your payments in 1/2. Maybe more!!!If not....if you have APR's that are over 25%, you can always try Beneficial, Citibank or House Hold finance for one of their personal loans.Have a nice evening;-)

[betty boop]

If you decide to go for the debt consolidation,don't make the mistake of just paying a little off your credit cards and spending the rest.A lot of people do this and end up in more debt.

[maryannsms]

The best way to help you pay off your debt quickly is to first stop using the card. Do not use the credit card to pay for anything. The more you use the card the more debt you collect which will make it harder to pay off in the long run.

[Lucky500]

One of the best ways to get out of debt is simply developing a budget.

Don't change any of your lifestyle for now, keep spending money the way you aways did for about a month, track everything and every single penny that you spend, either with a software like quicken or excel or with the good ol' pen in paper.

After you have that month tracked, start researching where the bleeding is happening, cut everything that you are able to cut like, movies, rentals, coffe, dining out.(at least until you are out of debt).

As far as your credit card or other type debs like loans go, you want to start eliminating the smaller amounts first. if you have a $500 credit card start by that one, make every effort to pay of quickly, that way you will feel encouraged to kee going. and the other option is get a 2nd job. you will sacrifice some of your free time, but if you really want to get out of debt that's the way to go.

[FreedomDM]

Your post was some time ago and I was curious to see if you found a way to resolve your situation. Debt Consolidation allows you to pay back the debt, maintain and improve your credit score with timely payments, and at a reduced, fixed interest rate to enable more of your monthly payment to go towards the balance versus creditor fees.

[Trish]

Originally Posted by FreedomDM

Your post was some time ago and I was curious to see if you found a way to resolve your situation. Debt Consolidation allows you to pay back the debt, maintain and improve your credit score with timely payments, and at a reduced, fixed interest rate to enable more of your monthly payment to go towards the balance versus creditor fees.

Hi Freedom..
I am just curious...
When a consumer works with a debt consolidation company, are they required to close all of their existing credit card accts?
And also, how do you negotiate down interest rates? Is that something the cc companies ONLY do with debt consolidation companies or is it something a consumer can do themselves?

[FreedomDM]

Consumers are required to close all the accounts they are ENROLLING into the debt consolidation program. They can leave a major credit card out of the program and open to use for emergencies. They are not required to enroll all accounts into the program less they are enrolling a BOA or AMEX as stipulated by said creditors. Each creditors guidelines are a bit different.

The interest rates have standard reductions per creditor and their guidelines for consolidation benefits. As a non-profit the rates we achieve for clients are usually a bit better than a for profit agency. Some creditors have an industry standard while others reduce to a lower fixed rate that varies per enrollment. For Example, Capital One will give anyone in our non-profit program a 7.4% fixed interest rate while BOA will vary the rate based on the financial addendum submitted with the proposal that we admin with our clients in a budget counseling session.

We have heard some clients state they were able to work out a deal with the creditors direct and on a few occasions it was better than what we could provide and we advise the client accordingly. Unfortunately though, most creditors will not begin direct negotiations with the account holder until they’re severely past due and/or nearing charge off status.

Any other questions feel free. Happy to help!

[Trish]

Thank you for your quick response! I appreciate your input.

I have spoken with several debt consolidation companies in the past. After all of the negatives were removed, my biggest problem was maxed out cards...

The thing I guess I was most leary of.....was closing all of the accounts. NOT because I wanted to go run them all up again.. (because....I've learned my lesson) but because I was afraid my score would go down having all of my accounts closed. And the debt consolidation companies I spoke with wanted me to list ALL of my ccs.

I declined doing the consolidation program and attempted to contact the cc companies directly myself to try and get interest rates down.. Absolutely NO LUCK at all. One of my cards is even at 30% Crazy high.

By any chance, did you ever get to see the scores before and after a person has closed all of their accts with a consolidation program?

And thank you again for your input and advice...

[FreedomDM]

NOOooooo problem, I get paid by the hour lol. We usually have our clients close the account themselves in the final enrollment process. Its my understanding that the closed account status does not reduce the actual credit score. We have the clients close them versus the creditors because some lenders see that as a negative when attempting to try and apply for new credit- which really is just a means for them to justify a higher interest rate on the loan being applied for.

I have not personally seen anyone's score from start to finish but that would be interesting to record and note. We usually have our clients who need a credit report go to annualcreditreport.com for a free report but the score is not provided unless paid for and we're usually just focused on the creditor names and balances for those who cannot provide recent statements for an accurate quote.

35% of your credit score is timely payments
30% is based on balances owed.

I know that our program has helped many of our clients improve their credit rating while in the program. The consecutive monthly payments from our org and the reduction in balances via the reduced interest rates is what really helps our clients credit score excel in a positive direction. We also write recommendation letters for our clients looking to establish new credit to help them get approved for a low interest rate loan, mortgage, car, etc.

If we have clients come into the program with current accounts we keep them that way to ensure their credit is not affected negatively by enrolling in our program. (making sure payments do not fall behind or outside the normal billing cycle)

And by all means, any questions, any time. Im out at 3pm EST today but I'm in the office 9am-8pm Monday thru Thursday. Im also on the live chat feature via our website so again- any question, anytime - I'm happy to help***


Cordially,

Michael Brazier