Looking for a credit card debt solution that really works
I have several credit cards and I have always paid on time and slightly more than the minimum. Now, I got a notice that my minimum payment will be increased from 2% to 5% on the card with the largest balance. I don’t understand why they have done this (they didn’t give a reason) but this jump in the minimum payment is HUGE! I’m not sure I can handle these payments and I don’t know what to do.
I see so many advertisements for all these get-out-of-debt gimmicks, but I don’t trust any of them. Do any of these debt solutions actually work? If so, which ones? Would they work for my problem? Any help would be appreciated!
The only solution that works is paying down your debt. If you only pay slightly above the minimum, you will be in debt for the rest of your life. Large balances on revolving credit accounts does not look good on your credit report. It shows that you cannot handle your finances and makes you a credit risk. It can prevent you from buying a car, buying a house, or even getting a job.
You need to work out a budget and find ways to pay down your debt. If you find yourself overwhelmed with your current debt load, credit counseling should be your first step. A credit counselor will give you some tools and suggestions for reducing your payments. You should cut back on new clothes and other material possessions. Most importantly, you need to stop using your credit cards.
If 5% of your balance is unmanageable, that’s a red flag that you have WAY too much debt for your income. What you do is pay it – and quit charging.
Cut up all your credit cards and only get a new one when all your debts are paid off!
The best thing is to pay off all your credit cards. And the best way that i have found to do this is by using the debt snowball. that works very fast and it is effective.
MMV Financial offers venture loan, bridge loan, structured loan, and debt financing for technology and life sciences companies in North America.
My credit is great now, but there was a time that it was horrible, and I mean HORRIBLEI did not use a credit card debt solution from any credit restoration companies. I did it all on my own.
Step1-Cut up all CCs
Step 2-Get a repayment plan w/ every creditor you have. Citibank dropped my interest rate to 0% during my repayment period. BOA dropped it to 2%.
Step3-Pay as much as you can, not just the minimum amount. Paying only the minimum amount is what got me into so much trouble in the first place. I made every payment on time, but did not pay what I knew I could. It ended up getting me into a lot of trouble.
Step4-Do not apply for any new lines of credit until all debt is paid off. Each inquiry will ding your credit report.
Good luck!
Pay it and stop charging. 5% is too huge.
If the minimum payment is completely unmanageable then you might want to enter into a Debt Management Plan. Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS) in your area. They can negotiate lower payments.
They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it impossible to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment or mortgage anytime soon.
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Stay away from any "debt consolidation" company that promises to cut your payments and debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements.
Cut up the card, tighten your belt to the max and throw every last dime you have at it. You’ll make some breathing room shortly. Then when the 5% minimum payment comes down to an amount you’re comfortable with, freeze it at that level. 5% is 1/20th of the balance, so you’ll be done in a couple of years if you pay consistently.
If 5% of your balance is unmanageable, that’s a red flag that you have WAY too much debt for your income
I also come across to this kind of problem, unfortunately I haven’t found any solution to it. glad that you mention about this situation. Hope to read more updates about this one.
Is it real?
Yeh, you can get so many solutions to consolidate credit card debts. I have the experience of facing such problems and finally got the solution to get out of credit card debt of my own..
John williams´s last [type] ..Self-Employed Business Accounting Software- Staying In Touch With Your Bottom Line
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