Best Way to Consolidate Credit Card Debt
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Posted: Thu Sep 23, 2004 6:25 pm
Post subject: Best Way to Consolidate Credit Card Debt
Jensen
Date: 3/9/2001 2:30 pm CDT
I have pretty good credit but am looking for a way to cut my massive credit card payments down every month and start actually paying on the principle instead of just the interest. I am looking at consolidating about $26,000.00 and was wondering if going through Consumer Credit Counseling was a bad idea or would affect my credit rating in an adverse way?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
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Posted: Thu Sep 23, 2004 6:26 pm
Post subject: Best Way to Consolidate Credit Card Debt
Ira Stoller
Date: 3/11/2001 0:02 am CDT
What you might try is apply for one or more cards which offer temporary promotional balance transfer rates. For instance, I just received an offer for a GE Select Platinum MasterCard which offers a 1.9% rate on purchases and balance transfers until 10-31-01. To obtain this rate you must request at least one balance transfer with the application. The fine print also says that there is s 3% transaction fee of not less than $5.00 nor more than $35.00. They say they will offer credit lines of up to $100,000.00. This isn't the only one out there. Have a look around in the card reports section of this board and see if there's anything else you like.
With regard to credit counseling, I don't know much about it, but if it's free, or of even the first visit is free, try it; if you'renot careful you might learn something.
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Posted: Thu Sep 23, 2004 6:27 pm
Post subject: Best Way to Consolidate Credit Card Debt
Eugene
Date: 3/12/2001 0:12 am CDT
I have pretty good credit but am looking for a way to cut my massive credit card payments down every month and start actually paying on the principle instead of just the interest.
Credit card account are not like mortgages. As interest is posted every month, it becomes part of the balance. Any payment goes toward the balance with lower APR first.
I am looking at consolidating about $26,000.00 and was wondering if going through Consumer Credit Counseling was a bad idea or would affect my credit rating in an adverse way?
Yes, it would. They don't do anything you cannot do yourself.
Call each issuer and ask them to give you the best rate they could. Then call each of them again and say that the other card gave you a better rate and ask them if they could match it (slim chance here, but anyways...) Then call again and ask if they can give you a special rate if you transfer more balance to their card. Transfer the highest APR balance(s)to the lowest APR card(s). Then pay the minimums to all cards, except for the card with the highest APR, where you should dump all the money you can.
Repeat that whenever an APR is changed, or a card is paid off (don't forget to offer that card issuer to transfer balance if they give you a good APR), but probably not more often than every three months or so.
It's important to stop charging, always pay on time, and dump as much as you can on the highest APR balance.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Thu Sep 23, 2004 6:25 pm
Post subject: Best Way to Consolidate Credit Card Debt
Jensen
Date: 3/9/2001 2:30 pm CDT
I have pretty good credit but am looking for a way to cut my massive credit card payments down every month and start actually paying on the principle instead of just the interest. I am looking at consolidating about $26,000.00 and was wondering if going through Consumer Credit Counseling was a bad idea or would affect my credit rating in an adverse way?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Thu Sep 23, 2004 6:26 pm
Post subject: Best Way to Consolidate Credit Card Debt
Ira Stoller
Date: 3/11/2001 0:02 am CDT
What you might try is apply for one or more cards which offer temporary promotional balance transfer rates. For instance, I just received an offer for a GE Select Platinum MasterCard which offers a 1.9% rate on purchases and balance transfers until 10-31-01. To obtain this rate you must request at least one balance transfer with the application. The fine print also says that there is s 3% transaction fee of not less than $5.00 nor more than $35.00. They say they will offer credit lines of up to $100,000.00. This isn't the only one out there. Have a look around in the card reports section of this board and see if there's anything else you like.
With regard to credit counseling, I don't know much about it, but if it's free, or of even the first visit is free, try it; if you'renot careful you might learn something.
archive
Posted: Thu Sep 23, 2004 6:27 pm
Post subject: Best Way to Consolidate Credit Card Debt
Eugene
Date: 3/12/2001 0:12 am CDT
I have pretty good credit but am looking for a way to cut my massive credit card payments down every month and start actually paying on the principle instead of just the interest.
Credit card account are not like mortgages. As interest is posted every month, it becomes part of the balance. Any payment goes toward the balance with lower APR first.
I am looking at consolidating about $26,000.00 and was wondering if going through Consumer Credit Counseling was a bad idea or would affect my credit rating in an adverse way?
Yes, it would. They don't do anything you cannot do yourself.
Call each issuer and ask them to give you the best rate they could. Then call each of them again and say that the other card gave you a better rate and ask them if they could match it (slim chance here, but anyways...) Then call again and ask if they can give you a special rate if you transfer more balance to their card. Transfer the highest APR balance(s)to the lowest APR card(s). Then pay the minimums to all cards, except for the card with the highest APR, where you should dump all the money you can.
Repeat that whenever an APR is changed, or a card is paid off (don't forget to offer that card issuer to transfer balance if they give you a good APR), but probably not more often than every three months or so.
It's important to stop charging, always pay on time, and dump as much as you can on the highest APR balance.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 12:34 PM
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