Credit Tips: Ways to Get Out of Credit Card Debt

Posted On: February 1, 2006

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Posted: Sat Jan 08, 2005 3:09 pm
Post subject: Ways to Get Out of Credit Card Debt

Barry
Date: 10/1/2000 11:53 pm CDT

Hello,

I am new to this site, and, recently began (tonight) researching ways to get out of debt.

Here’s my problem:

In January of this year, I turned all payments over to my wife, telling her “I will go crazy if I keep writing the payments.”

Now, in October, I decide to take the responsibility back over and find that, Even though we really haven’t been haggled by phone calls, and we’ve been paying minimums each month.. That I know of.. Two cards, of 4 big ones we got, are $3000 more than they were in January!!

We only have one card of each, and I have them, and I haven’t used them.. Is it possible to amass that much in late charges? Even if the payment does get in. But late?

We have both been distracted by the arrival of a new baby girl (#3 of 3).. And now, After finally realizing what’s been happening, I’m ready to hit panic mode.

What should I do? I do not have time to become a financial guru in my spare time. I work hard and make enough money to pay my bills.. Just not all at once!

Can someone point me in the right direction here?

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Posted: Sat Jan 08, 2005 3:10 pm
Post subject: Ways to Get Out of Credit Card Debt

Eugene Skorodinsky
Date: 10/2/2000 1:43 am CDT

Barry, did you watch your statements every month? Maybe there were some transactions that you do not realize you made, or you forgot, or they are fraudulent? We can speculate but it will probably not get us anywhere unless you look at the statements.

If you always paid the minimums and never charged anything new on the cards, your balance should have lowered. Very slowly but it should have, otherwise you would never pay off your debt, you’d only increase it further.

If you are making enough, start paying more than minimum on the card with highest interest, to pay it off asap. That is after you do some damage control here.

If you do not have statements, you can order them but that will cost you something. Instead, ask the bank why your balance keeps raising after you stopped charging anything. Maybe they will tell you that you incurred some fees in the latest time ($3,000 in 9 months? Sounds too high even if you are undisciplined), or that there are charges on your account (more likely). An option that your bank accepts such low minimum payments that you will never pay off your debt, still remains. Raise what you pay every month, dramatically.

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Posted: Sat Jan 08, 2005 3:11 pm
Post subject: Ways to Get Out of Credit Card Debt

tim
Date: 10/2/2000 6:35 pm CDT

Barry,

First review your statements and notify your creditors of any mistakes.

Second, reduce your cards from 4 to just two.

Third ( the fastest way to be debt free)

Cut your cards up and return them to the bank. I know it sounds drastic, but it worked for me. If you take away some of the temptation you can clear your worries away.

Your situation as you described , dictates that you reduce your debt immediately.Your wife too for that matter.

Above is the most sure fire way to get out of debt.

Also try: using coupons and buying two of everthing you use when you go shopping

Also try:having a yard sale or posting items you can do without on ebay or anmazon auctions (get rid of that extra tv or vcr or power tool)

Also try: renting a room in your house ( it worked for me just for one year I made over $2500.00)

Barry,sincerely, there is no trick or easy way to get out of debt. Barring a home consolidation loan or a personal loan (which leads to more debt)or a lucky windfall, hard work and less personal expenses are the only way to be free of debt.

Act now to save what credit you have and have faith in yourself and your wife.