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Regular Contributor
Posts: 185
Registered: ‎07-26-2009
0

Re: need some advice?

Thats for sure! I think I need to learn a lesson and either sink or swim. As for the advice about closing credit cards...I've actually started that with the exact thought in mind about avoiding an apr increase before it can happen! I closed my citicard, and both chase accounts because those three have THE lowest APRs and I owe them each quite a bit. I just called Cap1 and they wouldn't reduce my interest rate at all....capital one is going to be the card I keep because I've had them since the day I turned 18...longest history. I really don't want to close my discover card...but all the rest can go. I have them cut up for right now. Anyone have a backdoor number for capital one to talk to an account manager so I can try to convince them to lower my apr by a few points?

Moderator
Posts: 17,419
Registered: ‎07-14-2009
0

Re: need some advice?

 


mgs2010 wrote:

Thats for sure! I think I need to learn a lesson and either sink or swim. As for the advice about closing credit cards...I've actually started that with the exact thought in mind about avoiding an apr increase before it can happen! I closed my citicard, and both chase accounts because those three have THE lowest APRs and I owe them each quite a bit. I just called Cap1 and they wouldn't reduce my interest rate at all....capital one is going to be the card I keep because I've had them since the day I turned 18...longest history. I really don't want to close my discover card...but all the rest can go. I have them cut up for right now. Anyone have a backdoor number for capital one to talk to an account manager so I can try to convince them to lower my apr by a few points?


 

Here is a list of Backdoor Numbers for many different companies. Hopefully you'll find one for Cap 1 that works for you.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772

You can do the same thing with hard work


 

 

 

 

Established Member
Posts: 45
Registered: ‎07-13-2010
0

Re: need some advice?

 


mgs2010 wrote:

Thats for sure! I think I need to learn a lesson and either sink or swim. As for the advice about closing credit cards...I've actually started that with the exact thought in mind about avoiding an apr increase before it can happen! I closed my citicard, and both chase accounts because those three have THE lowest APRs and I owe them each quite a bit. I just called Cap1 and they wouldn't reduce my interest rate at all....capital one is going to be the card I keep because I've had them since the day I turned 18...longest history. I really don't want to close my discover card...but all the rest can go. I have them cut up for right now. Anyone have a backdoor number for capital one to talk to an account manager so I can try to convince them to lower my apr by a few points?


That is awesome! I hope everything works out for you. You sound like you are getting a great head start, and I wont lie, 40k is going to take a 'hot minute', but you know that. I applaud you for not missing a payment, only up from there! Congrats on that, and I certainly wish the best of luck to you! Would love to continue to hear about this progress, more so about how much your score increases, so please keep us updated!

 

Established Member
Posts: 21
Registered: ‎01-05-2010
0

Re: need some advice?

Have you looked into ways you could reduce your student loan payments? I'm under the Income Based Repayment Plan and managed to reduce my payments to $220 from $600. Of course your payments will go up as your income goes up, but they will never be more than they were under the standard repayment plan. And if you work in public service, like myself, the loan balance will be forgiven after 10 years if you meet all the criteria.

Regular Contributor
Posts: 185
Registered: ‎07-26-2009
0

Re: need some advice?

[ Edited ]

Funny that you mention the student loans because I literally JUST finished the online application to consolidate with federal direct loans, and I am going to do the income based repayment! Only problem is that I was in college during the private student loan explosion and got suckered into a couple private loans with sallie mae..Now I am 34k in the hole with them and the min payments are going to be like 350.00..They don't have any such repayment program. The only option I have is interest only for 2 years. Forget that! I'd rather suck it up and pay down the balance rather than make that conglomeration of thieves any more rich than they already are!

Moderator Emeritus
Posts: 4,470
Registered: ‎12-31-2008
0

Re: need some advice?

Hi mgs,

 

While you're working through your financial woes - have you considered getting a second job?  Consider working your tush off for a season and nail those balances.  And I think Dave Ramsey has some excellent usable advise for debt snowballing and getting out of debt.  Just don't be afraid to work really really hard.  And, as Dave says, eat rice and beans and drive a beater until you get in a financially sound place.

 

Best wishes to you!  Lots of us have been there - you can get out and it will feel darn good!  But dig your heels in and push hard.

Just puttin' syrup on something, don't make it pancakes.
Established Contributor
Posts: 500
Registered: ‎05-11-2007
0

Re: need some advice?

Hi there you are in a tough spot. Few things, first you are not bankrupt so put that out of your mind. It would be the worst possible move you could make. Second many have suggested you close accounts. From a credit score perspective, again a bad move. I would however cut them up so that it would be much harder to fall into the temtation to use them. Talking with Cccs might be a good idea but just for budgeting help. At this point I would do nothing at all to even think about defaulting. You can work through this but it will take commitment and several years to do. You may in fact still be in a good place in a few years. Pick one card pay all you can over mins and pay minimums on the rest. You cando it. Hang in there. You are young and we ALL have done really done stupid things. Learn from your mistakes but do not try to find an easy way out. That will in the long run hurt you way more than the debt. Good luck
Community Leader
Senior Contributor
Posts: 4,336
Registered: ‎09-06-2008
0

Re: need some advice?

i agree, i don't think i would have closed any of the cards.  those are all positive tradelines that would have continued with you for many years.  yes, they will stay on your reports for 10 years after closure, but you could have kept them beyond that, you know?

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
Regular Contributor
Posts: 185
Registered: ‎07-26-2009
0

Re: need some advice?

the only ones I closed were Citi (to avoid the rate going to 29.99%) and my two chase cards (6.25% and 7.24%) which I closed mainly to avoid them from rate jacking me in the future...and they already started chasing the balance (credit limit was 10,000, balance was 7,000 and the reduced the limit to 7300) since closing them they have not chased the balance any further. I do plan on keeping my other accounts open, unless they give me some sort of AA then I will opt out and close.

Score alert today shows my score increased to 625, woo hoo! I have a loooooonnnnnnnnnnggggg way to go.

Moderator Emerita
Posts: 28,098
Registered: ‎04-01-2007
0

Re: need some advice?

I respectfully disagree with the earlier post about closing all the cards but one. While it might seem that this would prevent debt from reaccumulating, we all know how to get more cards, I'm afraid.

 

If there are just an annoying number of cards, I can see closing some as you go.

 

As another poster said, it's critical that you get more income. I didn't have the debt burden that you have, but I had some unexpected tuition increases for one of my kids that I put on a CC that I had to knock down, plus I was waaaay behind in retirement savings. So I got a second job 5 years ago, and I still work 50-60 hours a week. It's really amazing what can be done with extra cash.

 

This is incredibly tough to do in days when so many people don't even have one job, so I realize that this will be a struggle. But I just don't think that you're going to be able to make significant forward progress without additional income.

 

Once you get through this (and you can, with a lot of stubbornness and determination!), this will make you that much better of a financial counselor. You'll be able to both empathize and lay down the law to clients that are in the position you're in now.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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