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If you have good credit, ask for a consolidation loan. It is an unsecured loan.
You can usually get up to $10 k on your signature alone, with the stipulation of automatic deduction from your checking or savings account you designate.
It usually comes out on the first of the month.
The interest is usually 5-10%depending on your credit.
If that won't pay them all off, go with the list of the most expensive rates, and have them pay off the most it can.
They give you a check for the amount s necessary made out directly to the credit card company in your name, you just send it in when your next bill comes.
Or send it directly to the credit card company at their payment center address, which can be found by calling the number on the back of the card.
It's tempting to charge the card up again, but resist. If you have to, put the card in a Ziploc bag of water and stick it in the freezer. You will have time to think about a purchase while you wait for it to thaw out.
Best of luck, been there done that twice, unfortunately.
good advice....except - how much do you use the physical card? Most of my shopping is online and is auto-populated in a form!
Found this on the Slate Chase Card website. Thought it was interesting
Every day, numbers help define us. Our blood pressure is a pretty decent indicator of our heart health. Our age might determine whether we can vote, see a movie, or get a discount at the ticket window.
While there's nothing mysterious about many of these measures, one of the biggest numbers used to identify us–our credit score–can be. From buying a house to getting a cell phone contract, the information pulled up when a lender requests a credit report could mean the difference between paying huge interest fees and potentially securing the deals we want. But how does it work?
Naturally, it comes down to more numbers. "Your credit score depends on several factors, the largest being your payment history," says Torabi. "That makes up 35 percent of your FICO credit score calculation. "On-time payments can raise your score; late payments can detract from it."
The second most important, Torabi says, is your credit utilization. Say you have three cards with $10,000 in available total credit. If you're $2,000 in debt, your utilization would only be 20 percent. "The lower your utilization, the better for your score," she says. "In fact, the highest credit scores tend to be held by individuals with credit utilization of under 10 percent. That's why it's important to maintain low balances and not get on that 'monthly minimum' bandwagon if possible."
Utilization accounts for 30 percent of your score. Another 15 percent is related to how long your credit history is–the longer, the better. (Young folks without a credit history should ask their parents about becoming an authorized user on their credit accounts.) 10 percent looks at how many new lines of credit you've opened. (Applying for too many in too short a time can be damaging.) Finally, the remaining 10 percent considers how many different lines of credit you have between cards, car loans, or personal loans.
That resulting basic FICO® Score can range from a 300 to a maximum of 850, with the numbers being calculated by three major bureaus: TransUnion, Equifax, and Experian. You may also notice the number can vary a little–or even a lot–between the three. Why? "Credit bureaus keep track of the same information but sometimes in different ways," Torabi says. "Lenders report your credit information to the bureaus, but sometimes at various times so you can't assume that all bureaus always have identical information."
Mistakes can also happen, from accounts you didn't realize you'd signed up for to late payments that were actually on time. You can always contact the agency to correct the record, which normally gets updated once a month. Your credit card company may also offer tools and resources to help you ensure they've got your (correct) number.
I am 55 and seriously thinking about retirement down the road. I do NOT want to have any CC debt going into retirement in 10 to 12 years. My oldest daughter told me to go to my Credit Union and see about a "secured loan" so I am doing that today. If they turn me down, I will just have to keep trying to pay more than the minimum payment and not use them (which I have quit doing for at least 6 months now).
It is so crazy to pay that interest rate. The Amazon card alone is 26% interest!!
I imagine a lot of people struggle with this too. I have quite using them for birthday gifts to family, Christmas, gas for my car. If I can't afford it, I'm not getting it!!
I really don't want to go online and use one of those companies like "Lending Tree" etc. I get enough of their junk mail coming to the house already.
I think you've taken the first step to cutting that credit card debt by curtailing their use. You can't get anywhere cutting your debt unless you do that. And if you're able to get a secured loan for a decent interest rate-it's got to be less than credit card interests-, you can come out ahead using that money to pay off the credit cards, maybe one at a time, the cards with highest interest rates first. You'll pay less overall in repaying that loan ( make sure you do that diligently, but you know that ) with the lower interest rates.
When people talk about paying off credit cards, I always think back to when I met my husband, about 40 years ago. He had a number of credit cards, all maxed out, and he was always looking to open yet another credit card and max that one out too! He tended to run right up to the due date with his bills, and he justified the credit card debt by saying the interest was tax deductible-in those days it was. Well, his attitude towards finances drove me up a wall-talk about the spendthrift vs tightwad scenario, and though I loved him with all my heart I wasn't so sure I could live with the way he spent money!
But just before we got married, I asked him if he would like me to handle our finances, and he asked me "Oh WOULD you?????", and he gleefully handed it all over.
Well, it was maybe a year or two before I tackled that credit card debt, after the IRS got rid of the credit card interest deduction. There were quite a few cards, and we tended to pay the minimum amounts on them, when I paid more on one my husband tended to spend it up to the max. But I sat him down one day,showed him how much money we were losing on interest, and how paying the minimum, and spending to the max would keep us in debt forever, and told him of myplan to pay them off. He agreed to limit the use of the card (and I took most of his cards).
I paid them off one at a time. I started with the one with the lowest debt on it, paid as much as I could and still be able to make the minimum payments on the other cards. When that card was paid off, I started on the next one, did the same thing, and gradually (after about a yr and a half), paid all the cards off. We canceled most of the cards as they were paid off, andmy husband agreed not to charge so much, and he didn't.
I guess it took me about two years to talk him into starting IRAs for retirement savings, but we did that too, and he actually became a believer in saving, and not spending more on credit cards than one can afford to pay off monthly.
It was a gradual process, but years later, in retirement we have very little debt.
Whatever you do, though, I'd be leery of getting loans from just any of those advertised on TV loan consolidation places. Some of them will leave you worse off.
I think you've taken the first step to cutting that credit card debt by curtailing their use. You can't get anywhere cutting your debt unless you do that. And if you're able to get a secured loan for a decent interest rate-it's got to be less than credit card interests-, you can come out ahead using that money to pay off the credit cards, maybe one at a time, the cards with highest interest rates first. You'll pay less overall in repaying that loan ( make sure you do that diligently, but you know that ) with the lower interest rates.
I guess it took me about two years to talk him into starting IRAs for retirement savings, but we did that too, and he actually became a believer in saving, and not spending more on credit cards than one can afford to pay off monthly.
It was a gradual process, but years later, in retirement we have very little debt.
Whatever you do, though, I'd be leery of getting loans from just any of those advertised on TV loan consolidation places. Some of them will leave you worse off.
Anyhow, good luck.
Hi Travelassie! Thank you for sharing! Your husband is lucky you took charge and got those paid off---Yeah!!
I did get a secured loan at 6.94 percent interest. (with our Credit Union) I did not want to use one of those lending places---they seem so shady! It is a 3 year loan with no penalty for early payoff and I did take the insurance on the loan that if I lost my job or was injured and couldn't work-the loan would be paid. My I am paying off 3 cards. The highest interest rate on one is 26% interest!! Insane!
I will keep one open after it is paid off and keep that card locked up and will only use for emergencies. No more spending on junk we don't need and not using it for any gifts for the kids. Enough is enough. Time to lock it down and get out of debt because retirement is less than 10 years down the road. Besides that, if I die before my spouse, I certainly don't want to leave that burden to my spouse. I am hoping we can get my spouse to pay off some cc debt too because I certainly don't want to be stuck with it if spouse goes before me.
Feels good to get the finances in order
I refuse to pay interest in credit card debt. I weekly get offers for no interest for so many months. I balance transfer my debt and when that offer runs out transfer it to another card. I have been able to pay down my debt and still afford to live month to month.
From discover card website my credit score is your FICO® Credit Score is 833
It does get dinged slightly opening a new card but goes back up. My score is good enough that the slight ding isn't a big deal.
I have a balance on my discover card that is running a special of zero percent interest for 18 months that hasn't hurt my score at all and I just pay the minimum payment a month. So this isn't true and this post is unkind
If your credit score isn't effected by carrying a balance, then you always carry a balance, which shows lack of financial sense. Scores do change if you go from holding a zero balance to holding one. It's called credit utilization rate.
Severe is a relative and subjective term. So my opinion that it's severe can't be wrong, it's an opinion. Are you sure you have the mental capabilities to be posting on the internet? I highly doubt it. Seek medical attention, immediately. But before you do that, get rid of your Sears credit card and get something that normalized society uses.
I did actually call the CC companies first but all they would offer is a lower rate for 6 to 7 months. So ridiculous. Oh well! I've got it worked out. Thank you for the advice!!
I think if you read the fine print on those 0%-interest if you transfer your balance offers, they generally only offer that 0 interest for a specified amount of time ( a few months or so), after that the interest goes up.
So good luck paying off those credit cards. You'll be glad you did.
Hi Travelassie! Thank you for sharing! Your husband is lucky you took charge and got those paid off---Yeah!!
I did get a secured loan at 6.94 percent interest. (with our Credit Union) I did not want to use one of those lending places---they seem so shady! It is a 3 year loan with no penalty for early payoff and I did take the insurance on the loan that if I lost my job or was injured and couldn't work-the loan would be paid. My I am paying off 3 cards. The highest interest rate on one is 26% interest!! Insane!
I will keep one open after it is paid off and keep that card locked up and will only use for emergencies. No more spending on junk we don't need and not using it for any gifts for the kids. Enough is enough. Time to lock it down and get out of debt because retirement is less than 10 years down the road. Besides that, if I die before my spouse, I certainly don't want to leave that burden to my spouse. I am hoping we can get my spouse to pay off some cc debt too because I certainly don't want to be stuck with it if spouse goes before me.
Feels good to get the finances in order
Well, that's a whole lot less interest than those credit cards, for sure. 26% interest on that Amazon card is scary! I've got one Visa card from my bank, has about a 12% interest but I pay it off every month. I use it instead of cash to pay for most of my purchases, including groceries and gas, it's a rewards card. I also have an American Express card ( no annual fee) that I don't use as much, I think the interest rate is a bit less.
good advice....except - how much do you use the physical card? Most of my shopping is online and is auto-populated in a form!
LOL, I guess to prevent that you'd have to put your computer ( tablet, phone, whichever you're using) in a plastic bag full of water and put it in the freezer.
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) with the lower interest rates.
