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Too much credit card debt. How to get out?

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maxq
Regular Contributor

Re: Too much credit card debt. How to get out?

You have already received some great advice to get started. Everyone's situation is different and it's easy to stand back and say just do abc but you really need to sit down with your spouse and work out some budgeting. Only you guys truly know what is coming in and going out. But again the advice that's been given has been really good here.

 

I just wanted to provide this link to point you to a place here on the web site to maybe get some additional knowledge: http://www.myfico.com/Goals/CreditCards/

 

Love to hear how things are progressing and like others have mentioned if you have any additional details like card balances vs limit and even APR's would assist in giving you better guidance. As a couple others mentioned either a consolidating loan could help but maybe even better yet just a consolidation of card balances into one of your current cards. This would just help in not acquring more debt just moving it to one of your cards with the lowest APR if this is a possibility for you guys. Sometimes one bill is better to look at and budget for than 5. I can only imagine how difficult its been with no job and kids to take care of.

 

Hang in there and keep us posted.

Goal of 825+ Gardening since 05/05/2017
Message 21 of 33
Anonymous
Not applicable

Re: Too much credit card debt. How to get out?

If possible you might consider getting a personal loan to pay off your card. Then you will have a fixed rate & fixed payment. Easier to budget for. Then close the cards you don't need if you feel like it is too much of a temptation. Most personal loans have a lower apr than credit cards.
Message 22 of 33
p-
Valued Contributor

Re: Too much credit card debt. How to get out?


laruud wrote: ... $5000 in credit card debt... make $1600 every two weeks... have about $2200 in bills...can't afford the daycare!

What is the best plan to get these CC paid off?


Credit card debt can be a terrible drag.  The simple tricks like snowballing balances to free up money work, but the best thing is to come up with more income.

 

You might consider doing something on the side like watching other people's kids for an unlicensed discount.  I'm sure they feel the daycare pain as much as you do.  If that's not something you can do, then look at other ways to earn money from home.  For example, there are lots of telecommute customer service rep jobs out there.  Just be careful you don't get sucked into any scams where they want you to pay.

 

https://www.flexjobs.com/jobs/customer-service-call-center

 

 

Message 23 of 33
Anonymous
Not applicable

Re: Too much credit card debt. How to get out?


@Anonymous wrote:
If possible you might consider getting a personal loan to pay off your card. Then you will have a fixed rate & fixed payment. Easier to budget for. Then close the cards you don't need if you feel like it is too much of a temptation. Most personal loans have a lower apr than credit cards.

I was also going to recommend the same thing. My school's credit union gives great rates on personal loans to alumni so you should try to find similar options as well. 

Message 24 of 33
Imperfectfuture
Super Contributor

Re: Too much credit card debt. How to get out?

Message 25 of 33
Anonymous
Not applicable

Re: Too much credit card debt. How to get out?


@Anonymous wrote:

@Anonymous wrote:
If possible you might consider getting a personal loan to pay off your card. Then you will have a fixed rate & fixed payment. Easier to budget for. Then close the cards you don't need if you feel like it is too much of a temptation. Most personal loans have a lower apr than credit cards.

I was also going to recommend the same thing. My school's credit union gives great rates on personal loans to alumni so you should try to find similar options as well. 


+1

In addition to some of the great advice already shared......

I too would, take great steps towards securing a personal loan to slice down this 'not that bad' debt......even if

you have to suck it up a few months getting the overall debt positoned properly so that you would be approved for the PL...

....that is stay current so your scores don't drop and don't allow late pays to put you in a worse position...pay and consolidate

until you can get a FIXED TERM PL

 

That way you guys can budget how much for how long vs the revolving % of the CC's

a 5 year (60 month) required payment on 5k is only about $100....which gives you guys move to make the payment, gain some stability,

then start making larger payments to cut down on the % paid, even if it takes a year to start the extra payments....you can breath and not be

in the poor house.

 

Ex: 5k loan at 4.5% = $93.22/mo x 60 months = $593 in total % (but remember you serviced an unsecured loan for 5 years...not that bad)

and remember by keeping your CC's clean your scores may qualify you for even better terms 12, 18 or 24 months into the loan making it yet easier to rid your family of the principal

Message 26 of 33
SouthJamaica
Mega Contributor

Re: Too much credit card debt. How to get out?

I don't think the OP is monitoring this thread, as she hasn't posted anything since her original post.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 27 of 33
_NERD
Established Contributor

Re: Too much credit card debt. How to get out?

Hopefully everything's okay on the OP's end.

3B profile optimization in progress...
Message 28 of 33
Anonymous
Not applicable

Re: Too much credit card debt. How to get out?

Most of the debt consolidation firms provide free debt counseling service to debtors willing to consolidate their bills and debts. The counseling session allows you to determine your situation and discuss your options to get financial freedom with a debt consultant. This is to make sure that you know what's best for you.

Message 29 of 33
Anonymous
Not applicable

Re: Too much credit card debt. How to get out?


@Anonymous wrote:

@tacpoly wrote:
You need to cut back on expenses or cut back even more if you've already done that because of your husband's unemployment.

In addition to listing your cc debt, it would be helpful to list your expenses. Because the solution doesn't just lie with the modifying credit cards but in reducing your overall expense.

You can try to increase your income but unfortunately your husband seems to have maxed his income possibility for now; you would have to be the one to earn more money. If your kids go to school, can you take on some babysitting or some kind of work while they're in school?

Another possibility would be government assistance. I know its probably not the easiest thing to do, but I would have to think on a 40k income with 6 people living in your household that you should qualify. Just saying....I know its not for everyone.


Excellent Suggestion on top of all the other great advice. 

 

There are so many programs out there...  Energy Assistance, Food Assistance, Cell & Internet Assistance... Don't be Ashamed to take these great tools just to get yourself on steady ground.  Then when you all feel stable etc...  pay back by volunteering here and there ie food banks etc.  If you took some of these programs you can easily pay down that debt.  Also if you belong to your community church...  many times they lend a helping hand.  Don't be too proud.  Just remember the help you receive you should turn around and reciprocate and not always in the form of money.  But baking a pie for an elderly/disabled person etc. 

 

Also, if any of your children are of age to deliver papers or a small part time job ie like babysitting or cutting lawns.  Have them contribute $10 to the household expenses out of their paychecks.  It will help them learn responsibility and help the family unit in the process.

 

You can do this.... in the interim if you are a little behind in paying those credit cards ... you may want to pickup the phone and talk to your credit card holders into reducing your interest on your credit cards.    

 

You Got this ... I firmly believe when there is a will there is a way!  

 

Message 30 of 33
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