Yet another financial question

[thectrlguy]

Do you even know what a line of credit is?

EDIT: Thank god you aren't my account manager....

It's the same # no matter what. Moving it around is wasted energy - you don't get anything done that way. Pay it off. Taking out a loan is a ridiculous idea - as is using an agency. Note also that debt is a lifestyle problem - not a financial problem. You need to learn to be wise with your money - you don't need to learn how to move it around franticly and worry about marginal interest rates. Save $1000 so that you don't need to resort to credit cards while paying them off. After that, pay them off and never look back. There is no magic to debt reduction. Pick up an extra job - sell some parts - lose the debt and be happy.

[Turf1600]

It's the same # no matter what. Moving it around is wasted energy - you don't get anything done that way. Pay it off. Taking out a loan is a ridiculous idea - as is using an agency. Note also that debt is a lifestyle problem - not a financial problem. You need to learn to be wise with your money - you don't need to learn how to move it around franticly and worry about marginal interest rates. Save $1000 so that you don't need to resort to credit cards while paying them off. After that, pay them off and never look back. There is no magic to debt reduction. Pick up an extra job - sell some parts - lose the debt and be happy.

[Jean]

My apr is 0 to 16% depending on the card, and I have already transferred balance from one to another and closed 2 cards. Once the 0% offer ends it will turn into a 12-16%, so maybe then a loan is an option ?

I didn't know these agencies screw up your credit, from what I read they basically set up a trust account, negotiate the payment to the creditors and pay them in a lump sum. Are they not telling me something ?

Guess I'll just have to use the tax refund this year to pay the debt off.

[thectrlguy]

Yes... Credit Card Interest 19-20% .. vs .. line of credit 8-9%.... doesn't take a genius to put that one together.... Or keep on making payments... @ 20 points..

Are you suggesting taking out a loan to pay off credit cards in an effort to lower interest?

[Turf1600]

Don't know if you have a line of credit... if you don't, I get one, as high a possible (to reduce your interest rate), pay off your credit cards and diligently pay off your line of credit

At least your interest will be reasonable.

Are you suggesting taking out a loan to pay off credit cards in an effort to lower interest?

[StereoInstaller1]

And whatever you do, don't make babies...

[thectrlguy]

Don't know if you have a line of credit... if you don't, I get one, as high a possible (to reduce your interest rate), pay off your credit cards and diligently pay off your line of credit

At least your interest will be reasonable.

[scabzzzz]

I have 2 credit cards and a couple thousand in debt just from BMW of Nashville parts department.

:(

I think I will try said snowballing technique. I tried the consolidation method and just ended up with twice the amount on one card and ended up getting the other card back up to where it was. I think the key is to just keep one you gotta have and then cut the rest of them up but still pay them off. Also, setting yourself up on automatic debit helps as well. It will take out minimal amount but keep in your mind youneed to pay your CC bill. So you pay it off twice as fast.

[Turf1600]

Some of these companies that offer debt negotiation can screw you big time. It will appear on your credit as a bankrupcy and hurt you worse than pulling out of it yourself slowly as you can.

This is truth!

[Turf1600]

A book I read a few years ago was really helpful for me. It isn't all that long about 200 pages and the principles in it are really simple to understand yet work. It is called "The Richest Man In Babylon" and it can be found at any bookstore for less than $10.

Now back to your predicament, I would transfer all of your CC debt to a new card since a lot of them offer no interest charges on transfers. Then just live within your means and pay off that card without adding any new charges and you can have it paid off much faster than you would if you were accumulating interest charges on the balances. It will take self discipline but you can do it if you really want to change your finances. The book will help you change your relationship with money.

Good luck.

Sorry - but any type of debt consolidation is a joke. Interest is not your worst enemy right now - you are! Cut up all of your cards and follow the snowball plan and you'll be out from under it alot faster than if you consolidate. Believe it or not, it's easier to pay off 10 cards @ $200 each than 1 $2000 card. Mathematically it's the same - but emitionally it's different. Trust me on this one!

[atomic]

Some of these companies that offer debt negotiation can screw you big time. It will appear on your credit as a bankrupcy and hurt you worse than pulling out of it yourself slowly as you can.

[Skoobeesnak]

A good book I recommend

A book I read a few years ago was really helpful for me. It isn't all that long about 200 pages and the principles in it are really simple to understand yet work. It is called "The Richest Man In Babylon" and it can be found at any bookstore for less than $10.

Now back to your predicament, I would transfer all of your CC debt to a new card since a lot of them offer no interest charges on transfers. Then just live within your means and pay off that card without adding any new charges and you can have it paid off much faster than you would if you were accumulating interest charges on the balances. It will take self discipline but you can do it if you really want to change your finances. The book will help you change your relationship with money.

Good luck.

[Turf1600]

Dude - Those places are con artists. They will consolidate your loans and give you a lower interest rate but a longer term.

The fact of the matter is you will have to dig yourself out slowly.

This is what you do -

Place your CC bills in order of lowest balance to highest.

Pay the minimum monthly payment on every bill except the one with the smallest balance. Pay that bill off as fast as you can - with all the money you can throw at it. Repeat with the next bill until all debt is gone. It's called "debt snowballing" and is very effective. Don't forget that debt is a lifestyle. Get yourself out of it early and never look back. Cash is king.

There's nothing fancy about paying debt off. It costs the same amount of money almost any way you can do it.

FYI - NPO just means everyone gets fat bonus checks.

[Jean]

What's a good financial forum online to read and ask a couple questions ?

Let's just say I tend to learn from my own mistakes instead of others and ended up with more CC debt that I care for. I have been reading on debt. negotiation that a lot of agencies offer, some are non profit. Example - http://www.debtshield.com/debtrelief...different.html

So, just want to learn more about this option and see what the "fine print" is like.

I know, CC debt is dumb.