Credit card Debt.

[Anonymous]

I am in deep water!!!!! I need to find a way to pay about 15 thousands in debt on my credit cards. I can pay them all every month but only a little bit above the minimun. 

1) Citicard $2,1500. APR. 29%

2) Discover $3400 APR 14%

3) Shopnbccard $4400 APR 29%

4) Capitalonecard $5000 APR 0% for 18 months

5) Capitalonecard $800 APR 10.99%

6)HSBCcard $700 APR 26%

MyFico score is 579, because of the high credit usage and new accounts.

IS there any solution for me. IS there anyway I can combine these debts in one loan for a better APR. I do not have a house to get a secure loan. Help?? All account have no lates

[Anonymous]

Well, maybe cut the cards up. Pay any extra you can on the highest APR card, and get a second job if you can, so that you can pay faster. I think you might have trouble getting a decent loan with your score (especially unsecured). 

[southernficoaddict]

you can try the "snowball" method.  Keep paying the minimum on all of them, adding as much extra to the card with the smallest balance as you can.  After that one is paid off, move to the next one, applying minimum amount you were paying to the smallest to that payment as well as any extra.  You can get things moving pretty quickly but you have to be very strict with yourself and NOT charge anything else. 

[islandchild82]

I would definitely try and call the CCCs and ask them to lower your interest rates. Even if they do so temporarily it will help. A few months ago I contacted Dell and asked them to lower my insane interest rate, and they lowered it by 5%. In a few more months I will call and ask again. It never hurts to ask and will help you get these bills under control.

[haulingthescoreup]

There's the lower out-go, as the others suggested, and there's higher income. If you're not taking care of little ones on your own, check out a part-time job. Every pay-day, go online to your CC accounts and spend every cent of your paycheck on your CC debt. Set a time limit for working this job, like "until I have brought home $ X after taxes", or "until next May." That will help you stay motivated, because no way around it, an extra job can be exhausting.

The nice thing about a second job is that not only do you have some extra income, you will have neither the time nor energy to spend any more money. GL

[athensguy]

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@southernficoaddict wrote:

you can try the "snowball" method.  Keep paying the minimum on all of them, adding as much extra to the card with the smallest balance as you can.  After that one is paid off, move to the next one, applying minimum amount you were paying to the smallest to that payment as well as any extra.  You can get things moving pretty quickly but you have to be very strict with yourself and NOT charge anything else. 

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You realize that you are recommending he pay off 10.99% debt before 29% debt.

I would recommend the save money snowball, where you keep track each month of the current APRs, pay the minimum due the day the statement comes in for each of the cards, and any money you can get beyond that should go to the card with the highest APR. It will save you a lot of time and money over the low card snowball.

Here is a calculator that will show you what's up: http://www.whatsthecost.com/snowball.aspx?country=us

Cut back whereever you can. Some simple things can save enough money to make a difference.
Some of the easiest are:

• Don't eat out
• Schedule errands in order of distance so you reduce backtracking
• Check tire pressure
• Do dishes only with a full dishwasher, same idea with clothes washing
• Use your towel for several days to reduce laundry volume
• Reduce your cell phone plan
• Cut cable
• Have a yard sale, get rid of things you don't need
• If you have an extra room and your SO wouldn't object, get a roommate
• Raise the temperature on the thermostat in the summer, lower in the winter
• Change your air filters

There are a lot of small things that can save a little here and there and end up saving a good bit. Getting a part time job is another answer others have mentioned that can be a good thing. While it's not an immediate break, you can donate items in good condition that you probably couldn't sell and write them off on your taxes.

ETA: fixed some formatting, added a little

Message Edited by athensguy on 08-21-2008 08:53 AM

[Anonymous]

What happens at the end of 18 months on your 0% Capital One card? Do they back-calculate interest and add it on? What's the APR after 18 mos? 10.99% Higher (since it's a BT or advance or whatever)? If so, would it be better to work on that one to knock off some principal?