[GetEm]

I got a maxed out credit card that I haven't paid off and now since the credit card has nasty interest, I was wondering if I should pay it off with another credit card? Which credit card should I get, or are there any better methods when it comes to paying off a credit card? I do have a job, but I still got other bills. Might pick up a 2nd job to try and pay it off before I go off to school in the fall.

[T and A Man]

1) Understand why you got such high credit card debt in the first place. maxing out is a sign of poor behaviour. Typically impulse control or a lifestyle beyond your current means. Fix this behaviour.

2) Refinance to a lower charging asset. i.e. reduce your CC by $10,000 by drawing down on your mortgage by $10,000. Using the draw down to clean your credit card debt.

3) Do not repeat.

[WanderingSoul]

You could always take out a student loan to pay it off. Obviously you will still have to pay it off eventually, but you will not accrue interest while you are in school. So, you could pay it off with a student loan, and then pay $50-$100 month to your student loan while you are in school and if you pay it off before you graduate, you won't end up paying any interest.

Do yourself a favor though and don't go crazy with student loans. I have $19k in loans to pay back, which isn't shit compared to lots of people, but I still could have gotten by with about half of that had I not wanted "free money" to blow on clothes and booze.

[_DC_]

(01-17-2012 11:29 PM)GetEm Wrote:  

I got a maxed out credit card that I haven't paid off and now since the credit card has nasty interest, I was wondering if I should pay it off with another credit card? Which credit card should I get, or are there any better methods when it comes to paying off a credit card? I do have a job, but I still got other bills. Might pick up a 2nd job to try and pay it off before I go off to school in the fall.

To be harsh, there is no easy answer. Buying non-important shit on credit is one of the least fiscally responsible things to do. This is probably obvious but if the interest rate is very high, live like a poor person and pay if off as soon as possible. The last thing you want is a situation were it balloons and you can't even pay off the minimum monthly payment.

You say you want to pay it off before Fall? So I'm guessing we're not talking about an astronomical amount of money here? Your spending income, the amount of debt, and interest rate all come into play here. It is way too broad of a question without these details. It's largely an anonymous forum, just spill the beans on the numbers.

Please tell me you are not going to take out 100k in loans for a private school.

[el mechanico]

Just stop paying on it and eventually they will offer a settlement of about 25% of what you owe. Tell them you have to break it into 4 payments and make them fax or send you the agreement. Take any cash out of that bank that you have and then hire a credit repair guy to clean the scar off your credit(I know some) when it's said and done. The collection calls will start with nasty people and then when the nice ones start calling it's about to happen. My friends at the bank told me they settled up on large accounts for 15%. You will have to pay taxes on the amount charged off.

P.S. I fucking hate banks and insurance companies

[ElJefe]

(01-18-2012 12:23 AM)el mechanico Wrote:  

Just stop paying on it and eventually they will offer a settlement of about 25% of what you owe. Tell them you have to break it into 4 payments and make them fax or send you the agreement. Take any cash out of that bank that you have and then hire a credit repair guy to clean the scar off your credit(I know some) when it's said and done. The collection calls will start with nasty people and then when the nice ones start calling it's about to happen. My friends at the bank told me they settled up on large accounts for 15%. You will have to pay taxes on the amount charged off.

P.S. I fucking hate banks and insurance companies

I really doubt this is a good idea.

Cut on all your costs, if possible move in with parents for a while (sublet your current place). Stop going out, stop doing anything except preparing for school, exercise, reading your parents' books and working. You messed up, now you have to get your shit together.

Get that second job, too. Interest on credit-card debt is absolutely soul-crushing. Avoid it whenever possible.

[Vicious]

GetEm: You haven't filled out what country you are a citizen of. This can influence things a lot, until we know this you should not take any of the advice given in this thread.

[ElJefe]

(01-20-2012 04:14 AM)Vicious Wrote:  

GetEm: You haven't filled out what country you are a citizen of. This can influence things a lot, until we know this you should not take any of the advice given in this thread.

Good point. I was actually assuming he was American due to his manner of phrasing.

[CGS]

I would go to your bank and ask for a debt consolidation loan. CC's generally have a 20+% interest rate. Take the loan and pay off the credit card. CANCEL THE ACCOUNT AT THE CC.

Pay down the loan as fast as you can. Realize that paying down debt that has an interest rate of X% is the equivalent of making an investment at X%.

[canucktraveller]

I am going to assume from the op that you are fairly young, 17 or 18 maybe?

I don't think your debt is as bad as people in this thread are assuming, I know when I was 18 my credit limit was $500 although I know that is not the case anymore.

If you are fairly young, you are going to have a hard time getting any personal credit, unless your parents co-sign so I don't think that is an option.

Don't get a second credit card! if you were not responsible enough to maintain your balance on the first card what makes you think you will control your self with the second card. Refinancing with another CC is a terrible idea unless you are fully committed to getting out of debt and being smart with your money



You said you hope to pay it off by the fall, which is only ~7 months away, if that is possible the difference in interest paid between your original card, a new card or personal credit is not that major. It is not worth the hassle of refinancing if it saves you $10 a month for 7 months.

Mind you, if your debt is over $5000, which I assume it isn't. You might want to look into other options

[WestIndianArchie]

Expatriate.

out,
WIA

[choichoi]

I've got close to 8k in credit debt and don't get me started on the student loans which I have been forebearing since I graduated in 09. The prob is that i can only make the min payments and now that the interest has kicked in, it's a bitch. I signed up for a FOREX training course so that it'll get me in the mindset to start investing and use assets to pay off my bad debt (yeah i've been reading alota Kiyosaki). All I can do right now is keep working and keep paying.

[Cr33pin]

My friend has been a career college student for about the last 10 years, hes racked up soooo much money in student loans.

His solution was moving to China an he never plans on returning to the states

which is cool for me cause i got his car an plus im going to visit him

[Goldin Boy]

(01-18-2012 12:23 AM)el mechanico Wrote:  

Just stop paying on it and eventually they will offer a settlement of about 25% of what you owe. Tell them you have to break it into 4 payments and make them fax or send you the agreement. Take any cash out of that bank that you have and then hire a credit repair guy to clean the scar off your credit(I know some) when it's said and done. The collection calls will start with nasty people and then when the nice ones start calling it's about to happen. My friends at the bank told me they settled up on large accounts for 15%. You will have to pay taxes on the amount charged off.

P.S. I fucking hate banks and insurance companies

I'm doubtful about anyone who can fix your credit score. The scores go up when you make consistent payments on your debts over time. I have a different idea:

1) Understand credit cards are imaginary money. You're using funds you don't really have. If it's your only source of funds you have a problem.
2) If you can't pay, call the company and see if you could work something out. Ymmv but I've gotten late payment fees reversed and monthly payments skipped b/c I was outta work for a while. They don't want you to default b/c that's $$ they won't get.
3) Get a part time job and make 2-3x the minimum payments till you finish it.
4) While doing 3 establish a savings acct so you won't need the bank's credit anymore