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I maxed out all my credit cards

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Bman70
Established Contributor

Re: I maxed out all my credit cards


@Anonymous wrote:
New to this forum. I am completely depressed. I have managed to max out all of my credit cards. They have cents left available. All together its about 10k. Most of my cards are high interest, such as first premiere, credit one. Merrick bank. My highest card is my 6k NFCU cash rewards visa. I tried to get an increase with them and they said no that my utilization is high and to many inquiries. I have a perfect payment history all my life and no collections. I am screwed. How will I pay these cards when interest will still be piling up over my limit. I can pay minimum payments.
In January I can pay a little more. Problem is I need to buy a car in December or January. How can I buy a car with all my cards maxed out? I can only imagine my interest rate. I have kids so I have to get a car asap. Ahhh sorry for the long post. Can someone jump in and give me some advice? Thanks :/

Actually you're in a very similar situation to mine at the beginning of the year. Your debt is about 20% of your annual income. What I did was very challenging mentally, but I now have only ~$600 left of those CC balances. It took about a year. I sat down, made a strict budget for essentials, then eliminated all the rest. This left more over each month than I had expected. I put this sum toward the debt each month.

This meant no daily Starbucks, lots of entertainment and eating out eliminated, cooking at home most nights and storing the leftovers. I also sold several electronic and musical items and firearms I wasn't using, and put that toward the debt. I did not buy most things I "wanted," and that was hard. I just put them on a wish list for later. At first it seems like a hole that will never fill, but once you get over that mental part it goes pretty fast. After a few months it starts to feel good, and you feel almost superior for being able to put that huge lump toward debt every month. Smiley Happy It actualy feels better than buying random items that only make you feel slightly good temporarily. (My debt payment was second only to my rent, sometimes equal to it.) Consolidating could help, too, it usually lowers the payment, but that can also tempt you to take your time paying it off.

What does your income go to each month? It's worth downsizing on a lot of things, just for a year, to have a debt-free life after that. 


EX 822
TU 834
EQ 820


Message 21 of 82
efranklin23
Valued Contributor

Re: I maxed out all my credit cards


@Anonymous wrote:
New to this forum. I am completely depressed. I have managed to max out all of my credit cards. They have cents left available. All together its about 10k. Most of my cards are high interest, such as first premiere, credit one. Merrick bank. My highest card is my 6k NFCU cash rewards visa. I tried to get an increase with them and they said no that my utilization is high and to many inquiries. I have a perfect payment history all my life and no collections. I am screwed. How will I pay these cards when interest will still be piling up over my limit. I can pay minimum payments.
In January I can pay a little more. Problem is I need to buy a car in December or January. How can I buy a car with all my cards maxed out? I can only imagine my interest rate. I have kids so I have to get a car asap. Ahhh sorry for the long post. Can someone jump in and give me some advice? Thanks :/

To help you out, We need more info (your Credit Scores, income and the balance and Credit Limits) to help you. Based on what you typed, there's nothing that can be done from what you're typing until we have more info. But to make a story short, It would be wise to pay off as much as you can to the Credit Cards so they're not maxed out (80%). 

 

Also, how much disposable income do you have left over every month?

/

AMEX BCE (30K), DISCOVER IT (29.5K), NFCU CASH REWARDS (25K), BOA TRAVEL REWARDS (15K), USAA VISA (13K), CHASE SAPPHIRE RESERVE (13K), COMMENCE MASTERCARD (7.5K), CHASE FREEDOM (7K), CHASE FREEDOM (7K), TFCU CC (2.5K), TARGET REDCARD (900)
Message 22 of 82
Chris679
Established Contributor

Re: I maxed out all my credit cards

Might want to check out Lending Club.com for a consolidation loan.  Loans like yours are pretty much their bread and butter.  People invest small amounts of money in loans to people in your situation.  The investors can get great returns and the borrower can get an unsecured loan at a much lower rate than they would be paying on their credit cards.  You could be looking at something around 15% APR for 60 months: $240 / month.  With your income you would have no trouble qualifying although the high utilization could be an issue. 

Message 23 of 82
Anonymous
Not applicable

Re: I maxed out all my credit cards

I found myself in a very similar situation a few months ago. Pretty much all my credit cards were maxed. I had just enough available each month to cover that month's interest. I even met with a BK lawyer...that's how bad I was. In the end, I got a couple of consolidation loans (no bank would approve me for the entire amount, but I managed to get two loans that equaled up to the amount...just some food for thought). LendingClub was actually one of my lenders. The rate isn't great, but it's better than 20%+ that some cards are charging.

 

While I wasn't able to consolidate all my debt, I did managed to consolidate a huge chunk of it, to the point where it's manageable. Just stay the course. As others have said:

* Analyze your spending and create a strict budget. It may be very difficult, but at this point, sounds necessary.

* Strong-arm those friends/family that you helped. You may lose a couple of relationships, but if that's the case, you don't need them in your life anyway.

* Strongly look into consolidating debt, but don't get too comfortable. Just because you get a loan and you have a few hundred left over after paying off your CC's, don't go splurge.

* While I've never done this, perhaps contacting one of those credit counseling services may help. You're borderline about to default, so you've got little to lose. I'm not sure if/how that affects your credit, though.

Message 24 of 82
Kenny
Moderator Emeritus

Re: I maxed out all my credit cards


@Anonymous wrote:

I found myself in a very similar situation a few months ago. Pretty much all my credit cards were maxed. I had just enough available each month to cover that month's interest. I even met with a BK lawyer...that's how bad I was. In the end, I got a couple of consolidation loans (no bank would approve me for the entire amount, but I managed to get two loans that equaled up to the amount...just some food for thought). LendingClub was actually one of my lenders. The rate isn't great, but it's better than 20%+ that some cards are charging.

 

While I wasn't able to consolidate all my debt, I did managed to consolidate a huge chunk of it, to the point where it's manageable. Just stay the course. As others have said:

* Analyze your spending and create a strict budget. It may be very difficult, but at this point, sounds necessary.

* Strong-arm those friends/family that you helped. You may lose a couple of relationships, but if that's the case, you don't need them in your life anyway.

* Strongly look into consolidating debt, but don't get too comfortable. Just because you get a loan and you have a few hundred left over after paying off your CC's, don't go splurge.

* While I've never done this, perhaps contacting one of those credit counseling services may help. You're borderline about to default, so you've got little to lose. I'm not sure if/how that affects your credit, though.


I would agree with everything you've stated except the last part. I've refrained from posting because I wanted to say something similar, but didn't have the time to post it. The reason why I strongly do not suggest credit counseling services is that they do everything that you can do.. you can choose to stop paying your cards and then try to negotiate a payment plan or pay for deletion--- this isn't advisable unless you want to ruin your credit for a while.

 

The biggest thing for the OP to realize is this: you've got to change your spending and you've got to change it now. No more buying what you want.. only what you need. It will be hard, but you absolutely can get through it.. you placed yourself here by choosing the make the decisions that you did. Look at those people that you helped and request some or all of it back.. if they can't do it immediately set up a payment agreement with them. If they don't want to do this, remind them what you did for them (with the only caveat being if it was a GIFT that you did on your own without them asking or telling you they'd pay it back...)  No more excuses.. it's going to be very freeing when you actually turn this all around if you just commit to it.

Message 25 of 82
Kenny
Moderator Emeritus

Re: I maxed out all my credit cards


@Anonymous wrote:
Wish I had stuff to ebay. I was helping a few of my family member. I was putting them first and me last, as per usual. I wont do that ever again.

You'll also need to remember this feeling whenever you get out of this situation. 

 

Another alternative or maybe in conjuction with Lending Tree is Prosper. 

Message 26 of 82
Anonymous
Not applicable

Re: I maxed out all my credit cards


@-Kenny- wrote:

@Anonymous wrote:

I found myself in a very similar situation a few months ago. Pretty much all my credit cards were maxed. I had just enough available each month to cover that month's interest. I even met with a BK lawyer...that's how bad I was. In the end, I got a couple of consolidation loans (no bank would approve me for the entire amount, but I managed to get two loans that equaled up to the amount...just some food for thought). LendingClub was actually one of my lenders. The rate isn't great, but it's better than 20%+ that some cards are charging.

 

While I wasn't able to consolidate all my debt, I did managed to consolidate a huge chunk of it, to the point where it's manageable. Just stay the course. As others have said:

* Analyze your spending and create a strict budget. It may be very difficult, but at this point, sounds necessary.

* Strong-arm those friends/family that you helped. You may lose a couple of relationships, but if that's the case, you don't need them in your life anyway.

* Strongly look into consolidating debt, but don't get too comfortable. Just because you get a loan and you have a few hundred left over after paying off your CC's, don't go splurge.

* While I've never done this, perhaps contacting one of those credit counseling services may help. You're borderline about to default, so you've got little to lose. I'm not sure if/how that affects your credit, though.


I would agree with everything you've stated except the last part. I've refrained from posting because I wanted to say something similar, but didn't have the time to post it. The reason why I strongly do not suggest credit counseling services is that they do everything that you can do.. you can choose to stop paying your cards and then try to negotiate a payment plan or pay for deletion--- this isn't advisable unless you want to ruin your credit for a while.

 

The biggest thing for the OP to realize is this: you've got to change your spending and you've got to change it now. No more buying what you want.. only what you need. It will be hard, but you absolutely can get through it.. you placed yourself here by choosing the make the decisions that you did. Look at those people that you helped and request some or all of it back.. if they can't do it immediately set up a payment agreement with them. If they don't want to do this, remind them what you did for them (with the only caveat being if it was a GIFT that you did on your own without them asking or telling you they'd pay it back...)  No more excuses.. it's going to be very freeing when you actually turn this all around if you just commit to it.


Yeah, that's why I said I wasn't sure how it affects your credit. I've heard it can negatively affect you, but I've never done it, so I can't speak from personal experience. Thanks for the confirmation.

Message 27 of 82
Anonymous
Not applicable

Re: I maxed out all my credit cards

I highly recommend mint.com for being able to see literally where your money is going, has helped me save about 50% of my income. No more lattes, grocery shopping with coupons, netflix instead of cable, look at every spending category and try to find a solution to make it cheaper.

Message 28 of 82
Desmoire
Regular Contributor

Re: I maxed out all my credit cards


@Anonymous wrote:
New to this forum. I am completely depressed. I have managed to max out all of my credit cards. They have cents left available. All together its about 10k. Most of my cards are high interest, such as first premiere, credit one. Merrick bank. My highest card is my 6k NFCU cash rewards visa. I tried to get an increase with them and they said no that my utilization is high and to many inquiries. I have a perfect payment history all my life and no collections. I am screwed. How will I pay these cards when interest will still be piling up over my limit. I can pay minimum payments.
In January I can pay a little more. Problem is I need to buy a car in December or January. How can I buy a car with all my cards maxed out? I can only imagine my interest rate. I have kids so I have to get a car asap. Ahhh sorry for the long post. Can someone jump in and give me some advice? Thanks :/

I'm sorry to hear that. I have been in your shoes before, it's never easy. I would apply for a personal loan with a credit union nearby. If you don't have collections or anything negative on your credit report, on time payments, your score shouldn't be completely awful. NASA fcu is offering personal loans too, and they seem to be relatively generous. I wish you the best of luck! 

myFICO Scores EQ 778 TU 783 EX 772 | Mortgage 106774.00 | Auto Loan 15251.00 | AMEX BCE 0/25500 | Lowes 0/6300 | Barclay Rewards 0/5000 | NASA FCU 0/5000 | FNBO 0/4400 | Amazon 0/4000 | FNBO Employee 283/2900 | NFM 0/2600 | Chase Freedom 0/2500 | Best Buy 0/2300 | Cap One 0/2250 | FNBO 0/1100 | NASA FCU Rewards 0/1000 | Quicksilver 0/750 | Younkers 0/500 TOTAL: 283/74,450 0.003% UTIL
Message 29 of 82
TrulyyBlessed
Regular Contributor

Re: I maxed out all my credit cards


@destine2grow wrote:

What? So now they can't help you after you helped them? Please tell me that none of the debt on the cc is theirs?

I really wish you the best of luck OP. You might to call a cab and pay more on the cc. That's what I would do.


 I have a family member who was in a similar situation, and she actually got a second job as a cab driver. It solved her transportation issues and she was able to make a little extra money.


Starting Score: Nov. 2012 585
Current Score: EQ 733 EX 777 TU 743 Goal Score: 750+






Message 30 of 82
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