Ways to Pay off Debt Without Credit Counseling Services
Author: Guest
Posted: Mon Oct 06, 2003 4:57 pm
Post subject: Ways to Pay off Debt Without Credit Counseling Services
Hello. I have good credit but I'm overextended with high interest rate cards. I'm considering signing with a debt counseling/recovery service to negotiate lower interest rates and consolidate my payments into one payment with the service. My accounts will all be frozen. I don't want to damage my credit rating or ability to get credit in the future.
In your experience, is this a wise credit decision? Thank you.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: dave
Posted: Tue Oct 07, 2003 1:46 pm
Post subject: Ways to Pay off Debt Without Credit Counseling Services
Credit counseling is noted on your credit report and does trash your credit rating. Other ideas: negotiate with your creditors to lower your rates using the conventional argument that you are a good customer and always pay on time. This is less likely to work if you are overextended. Nevertheless, the worst that can happen is that they say "no."
Figure out how much you have available to pay on credit cards each month. Pay as much as you can on the card with the highest APR and pay minimums on the rest. Once that card is paid off, repeat the process with the next highest APR card. Stop using cards until you get your finances under control.
Once your utilization drops below 50%, you can consider applying for another card with better terms and transfer the balances to the new card.
You could take out an installment loan to consolidate your debt. If you own property, you might look into a HELOC which has a much lower rates.
Although it may be tough for a while, once you are over the hump and get your utilization low enough, the rest should be easy and you'll be happy you did not go for credit counseling.
Author: Ira
Posted: Fri Oct 10, 2003 11:21 pm
Post subject: Ways to Pay off Debt Without Credit Counseling Services
If you have good credit but are somewhat overextended, consider applying for cards that hve zero or very low rates on balance transfers. Citibank has an offer on the table for 0% for one year and I'm sure there are others. Transfer the balances on your high interest cards to lower interest cards. Once the intro rates are about to expire, apply for other 0% or low interest cards and do the same thing all over again. You save scads of $$$ on finance charges this way. Stay as far from CC as you can get; it won't help and it could harm your credit for a considerable time.
Author: Guest
Posted: Sun Oct 12, 2003 4:45 pm
Post subject: Ways to Pay off Debt Without Credit Counseling Services
Applying for new cards, particularly ones with good terms and nice 0% teaser offers, is not likely to work for people who are overextended on their existing cards. I would be surprised to hear that Citibank would approve an application from someone using 80% to 90% or more of their available revolving credit. The CC companies know that heavy usage is often the prelude to default.
It's best to apply for new cards when you don't need them to extricate yourself from a high interest rate situation. By adding new credit lines when you don't need them, you create more available credit which assures that your utilization won't rise above the teens or twenties unless something really catastrophic happens. Another benefit of doing this is that you have more flexibility to move balances around if one of your creditors goes into predatory change of terms mode.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Mon Oct 06, 2003 4:57 pm
Post subject: Ways to Pay off Debt Without Credit Counseling Services
Hello. I have good credit but I'm overextended with high interest rate cards. I'm considering signing with a debt counseling/recovery service to negotiate lower interest rates and consolidate my payments into one payment with the service. My accounts will all be frozen. I don't want to damage my credit rating or ability to get credit in the future.
In your experience, is this a wise credit decision? Thank you.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: dave
Posted: Tue Oct 07, 2003 1:46 pm
Post subject: Ways to Pay off Debt Without Credit Counseling Services
Credit counseling is noted on your credit report and does trash your credit rating. Other ideas: negotiate with your creditors to lower your rates using the conventional argument that you are a good customer and always pay on time. This is less likely to work if you are overextended. Nevertheless, the worst that can happen is that they say "no."
Figure out how much you have available to pay on credit cards each month. Pay as much as you can on the card with the highest APR and pay minimums on the rest. Once that card is paid off, repeat the process with the next highest APR card. Stop using cards until you get your finances under control.
Once your utilization drops below 50%, you can consider applying for another card with better terms and transfer the balances to the new card.
You could take out an installment loan to consolidate your debt. If you own property, you might look into a HELOC which has a much lower rates.
Although it may be tough for a while, once you are over the hump and get your utilization low enough, the rest should be easy and you'll be happy you did not go for credit counseling.
Author: Ira
Posted: Fri Oct 10, 2003 11:21 pm
Post subject: Ways to Pay off Debt Without Credit Counseling Services
If you have good credit but are somewhat overextended, consider applying for cards that hve zero or very low rates on balance transfers. Citibank has an offer on the table for 0% for one year and I'm sure there are others. Transfer the balances on your high interest cards to lower interest cards. Once the intro rates are about to expire, apply for other 0% or low interest cards and do the same thing all over again. You save scads of $$$ on finance charges this way. Stay as far from CC as you can get; it won't help and it could harm your credit for a considerable time.
Author: Guest
Posted: Sun Oct 12, 2003 4:45 pm
Post subject: Ways to Pay off Debt Without Credit Counseling Services
Applying for new cards, particularly ones with good terms and nice 0% teaser offers, is not likely to work for people who are overextended on their existing cards. I would be surprised to hear that Citibank would approve an application from someone using 80% to 90% or more of their available revolving credit. The CC companies know that heavy usage is often the prelude to default.
It's best to apply for new cards when you don't need them to extricate yourself from a high interest rate situation. By adding new credit lines when you don't need them, you create more available credit which assures that your utilization won't rise above the teens or twenties unless something really catastrophic happens. Another benefit of doing this is that you have more flexibility to move balances around if one of your creditors goes into predatory change of terms mode.
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 1:46 PM
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