Getting out of CC debt..
Member
Joined: Apr 2004
Posts: 82,468
Likes: 1,194
Originally Posted by kix,Jun 15 2007, 07:57 PM
Here's my surefire way.
Find things your parents help you or allow you to pay for and then cut a check for a few more than what the pay off is.
For example, student loan payoff amount is $14,000 so write a check for $14,500. Then wait for the difference check to come back in the mail.
I've done this quite a few times (between my wife and I) on things like car payoff, student loans, car insurance, etc. Its a good surefire way to obtain legit mod money.
Find things your parents help you or allow you to pay for and then cut a check for a few more than what the pay off is.
For example, student loan payoff amount is $14,000 so write a check for $14,500. Then wait for the difference check to come back in the mail.
I've done this quite a few times (between my wife and I) on things like car payoff, student loans, car insurance, etc. Its a good surefire way to obtain legit mod money.
no bueno, compadre
Former Moderator
Joined: Aug 2004
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Originally Posted by Dizings2k,Jun 15 2007, 03:09 PM
My decision is the S2000 has to go. As dick of a move it is to my parents, who are now divorced, I will have nothing to pay off with the money I get from selling it. The money can go towards the CC and student loans.
If they're selfish and give you crap about it, then they're looking out for their own agenda rather than your best interests.
Former Moderator
Joined: Nov 2001
Posts: 59,195
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From: Ventura, California, USA
Tough decision. I wouldn't sell my s2000 in your situation.
I'd find out why she overspent and didn't tell you.
I'd make her pay it back, no matter what the relationship. If my wife went out and did that, I'd have her ass!
I'd find out why she overspent and didn't tell you.
I'd make her pay it back, no matter what the relationship. If my wife went out and did that, I'd have her ass!
Registered User
Joined: May 2004
Posts: 2,202
Likes: 1
From: San Fran
Just curious, is the cc debt full of stuff from Walmart (ie essential necessities) or just random crap?
I wouldn't pay off the cc debt unless you're planning to marry her. If you are, then man up and sell one of your unnecessary toys (or the mods) that you can't afford.
I wouldn't pay off the cc debt unless you're planning to marry her. If you are, then man up and sell one of your unnecessary toys (or the mods) that you can't afford.
Registered User
Joined: Jan 2006
Posts: 3,581
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From: Tampa Florida
Just to let you know you have some options.
Credit Counseling is not a bad choice and despite what people are saying, will not ruin your credit. However your score may go down a bit but not as bad as it would if you were to find yourself 60 to 90 days deliquent.
Keep in mind that if you are not able to make the minimum payment, even if you give the creditor something, they will still apply late charges and penaties regardless.
With an interest rate as high as your current situation, most of your minimum payment will be devoted to the interest and not the principle leaving you to struggle with next months payment which puts you back to square one.
OPTIONS:
1. Call the creditor and threaten to close the account if the interest rate is not lowered. This only works if you have never been late and are current with the account (Good Customer).
2. If you own a home then you could take out some equity on your home,($4,000) and pay of the credit card off (Equity Line of Credit). Because the balance is now tied to the equity your interest rate will be lowered because it is now a secured debt backed by your home. On top of that now you can right off the interest on your taxes.
3. Call a (Credit Counseling Agency). This option is not neccessarily a bad one in the since CCA's can get you lower interest rates (many times in the single digit range) and get you out of debt in 3 to 5 years or less.
4. A little history on CCA's.
a. CCA's recieve "fair sharing" from the credit card companies which is how they make most of their money. The credit card companies inturn can right these "grants" off on their books. Why do they do this? Because when someone files for bankrupcy everybody losses and it is better for the credit card companies to work with "non-profit" CCA's as opossed to writing off the debt as "bad debt" and or selling the account to a third party collection agency.
b. Because it was soooo easy to file for Chapter 7 and 13, the credit card companies were loosing $$$ so they decided to go to the federal govt. and implement a program for such instances. The credit card companies set the guidelines for what fixed interest rates they would provide on CCA programs provided they were non-profit, were AICCA affiliates. BTW AICCA is the governing body for non-rofit CCA's and have strict guidelines to how much a CCA can charge for there services.
5. What to expect from a CCA and what to look out for.
a. Find a non-profit CCA that is AICCCA certified and part of the BBB. If the agency you talk with only offers "debt settlement" STAY AWAY because THAT will screw up you credit because you only pay back a portion (usually 50%) of what you owe.
b. Expect to be charged up to $75.00 dollars one time for the service and pay a monthly fee "donation" for the program. Dont let these numbers scare you. If a CCA can lower your monthly payment or get you out of debt with in a short time frame this is good as oppossed to taking 10 to 20 years to pay off a debt due to high interest rates which in the long run would waste MORE money.
c. Your credit card WILL be closed out. This will not kill your credit. I would go into how credit scores work but it would take too damn long so go to www.howstuffworks.comand do a search on credit scores for more information.
d. You will still be able to get credit cards from other companies. Many companies dont care if you are on a Debt Management Program and will still give you a credit card. Hell you can still get a credit card from the credit card company you put on the program once the account is payed off. Bottom line is these companies want you business!!
I think that covers everything and hope this helps you. For the record, I am a Finacial Advisor and a certified Credit Councelor. Two companies that are good are www.yourgfm.comand In Charge Debt Solutions.
Both of these companies have a good track record. As a matter of fact if you had a Chase credit card and needed to be put on a hardship program they would refer you to an AICCCA affiliated company such as the above mentioned!
Credit Counseling is not a bad choice and despite what people are saying, will not ruin your credit. However your score may go down a bit but not as bad as it would if you were to find yourself 60 to 90 days deliquent.
Keep in mind that if you are not able to make the minimum payment, even if you give the creditor something, they will still apply late charges and penaties regardless.
With an interest rate as high as your current situation, most of your minimum payment will be devoted to the interest and not the principle leaving you to struggle with next months payment which puts you back to square one.
OPTIONS:
1. Call the creditor and threaten to close the account if the interest rate is not lowered. This only works if you have never been late and are current with the account (Good Customer).
2. If you own a home then you could take out some equity on your home,($4,000) and pay of the credit card off (Equity Line of Credit). Because the balance is now tied to the equity your interest rate will be lowered because it is now a secured debt backed by your home. On top of that now you can right off the interest on your taxes.
3. Call a (Credit Counseling Agency). This option is not neccessarily a bad one in the since CCA's can get you lower interest rates (many times in the single digit range) and get you out of debt in 3 to 5 years or less.
4. A little history on CCA's.
a. CCA's recieve "fair sharing" from the credit card companies which is how they make most of their money. The credit card companies inturn can right these "grants" off on their books. Why do they do this? Because when someone files for bankrupcy everybody losses and it is better for the credit card companies to work with "non-profit" CCA's as opossed to writing off the debt as "bad debt" and or selling the account to a third party collection agency.
b. Because it was soooo easy to file for Chapter 7 and 13, the credit card companies were loosing $$$ so they decided to go to the federal govt. and implement a program for such instances. The credit card companies set the guidelines for what fixed interest rates they would provide on CCA programs provided they were non-profit, were AICCA affiliates. BTW AICCA is the governing body for non-rofit CCA's and have strict guidelines to how much a CCA can charge for there services.
5. What to expect from a CCA and what to look out for.
a. Find a non-profit CCA that is AICCCA certified and part of the BBB. If the agency you talk with only offers "debt settlement" STAY AWAY because THAT will screw up you credit because you only pay back a portion (usually 50%) of what you owe.
b. Expect to be charged up to $75.00 dollars one time for the service and pay a monthly fee "donation" for the program. Dont let these numbers scare you. If a CCA can lower your monthly payment or get you out of debt with in a short time frame this is good as oppossed to taking 10 to 20 years to pay off a debt due to high interest rates which in the long run would waste MORE money.
c. Your credit card WILL be closed out. This will not kill your credit. I would go into how credit scores work but it would take too damn long so go to www.howstuffworks.comand do a search on credit scores for more information.
d. You will still be able to get credit cards from other companies. Many companies dont care if you are on a Debt Management Program and will still give you a credit card. Hell you can still get a credit card from the credit card company you put on the program once the account is payed off. Bottom line is these companies want you business!!
I think that covers everything and hope this helps you. For the record, I am a Finacial Advisor and a certified Credit Councelor. Two companies that are good are www.yourgfm.comand In Charge Debt Solutions.
Both of these companies have a good track record. As a matter of fact if you had a Chase credit card and needed to be put on a hardship program they would refer you to an AICCCA affiliated company such as the above mentioned!
Registered User
Joined: Jun 2007
Posts: 1
Likes: 0
hey dustin,
are you at dizings2k5@yahoo.com,
have some good advice/help I work in debt counselling, and I can help you,
are you at dizings2k5@yahoo.com,
have some good advice/help I work in debt counselling, and I can help you,
Registered User
Joined: May 2005
Posts: 168
Likes: 0
From: Buford, GA
Originally Posted by Dizings2k,Jun 15 2007, 03:09 PM
Ive checked into the common law deal. PA doesnt have that.
I see where you guys are coming from with the maturity deal.
I am against selling one of my things because Im bitter to the fact that she hid the card from me. In all honesty, if she just told me she wanted to shop I would have set aside the cash for her to do so.
Im just angry about the situation.
My decision is the S2000 has to go. As dick of a move it is to my parents, who are now divorced, I will have nothing to pay off with the money I get from selling it. The money can go towards the CC and student loans.
Thanks for making it clear guys. I do live in a 30yr olds situation but I dont have the 30 yrs of life experience. It gets hard for me sometimes.
Thanks again
-Dustin
I see where you guys are coming from with the maturity deal.
I am against selling one of my things because Im bitter to the fact that she hid the card from me. In all honesty, if she just told me she wanted to shop I would have set aside the cash for her to do so.
Im just angry about the situation.
My decision is the S2000 has to go. As dick of a move it is to my parents, who are now divorced, I will have nothing to pay off with the money I get from selling it. The money can go towards the CC and student loans.
Thanks for making it clear guys. I do live in a 30yr olds situation but I dont have the 30 yrs of life experience. It gets hard for me sometimes.
Thanks again
-Dustin
1. Leave her. If you were considering going back to an Ex only a few months ago you are obviously not serious enough about this girl. WHY WOULD YOU EVER GIVE $4K TO A RELATIONSHIP THAT WILL NOT LAST??
2. Get serious, very serious and marry her. Sell the car. Pay off the loan.
Considering the comments you have left, neither of you are ready for marriage. There is no need to put yourself in this kind of situation unless there is a future with this girl.