Paying off 10 credit cards

Anonymous · ‎01-29-2017

I am a 25 year old that has been stupid with credit cards. I currently have 10 with a total of 10k in debt. I just took out a loan with lending club to pay them all off. Ive heard people say that you can call and work deals to save a little money. Anyone have any tips or pointers?

All advice much appreciated. Thanks in advance!

Abelcrdn · ‎01-29-2017

How does lending club work? What are the rates and loan amount?

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Anonymous · ‎01-30-2017

@Anonymous wrote:
I am a 25 year old that has been stupid with credit cards. I currently have 10 with a total of 10k in debt. I just took out a loan with lending club to pay them all off. Ive heard people say that you can call and work deals to save a little money. Anyone have any tips or pointers?

All advice much appreciated. Thanks in advance!

you should pay minimums on the lower intrest CC and start paying off the hirer intrest CC first, then after thats paid off, apply what you were paying to the next CC until you are eventually paying all that to the last CC, you can google "snowball or avalanche credit card"

Some lenders will work with you, depending on who they are. it would require a call and seening if they will lower the instrest rate. I personally wouldnt let them in on any problems unless it's gotten to that point. I know a friend of mine they actually closed her discover, waved all intrest until it was paid off. YMMV depending on the company. It did hurt her credit for along time. Although she had no missed payments he UTI was through the roof until it was paid off. So her otaining any new credit during the process was impossible.

MrsCHX · ‎01-30-2017

Do you just owe on them, eg they're still open, not in default?

If they're open, pay them off, put any extra money you can towards that personal loan, and rebalance yourself and your thoughts about credit! Luckily you can get the cards paid off, bringing your utilization way down, and see a jump in scores. Again, assuming they're just at limits and not closed/defaulted.

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RobertEG · ‎01-30-2017

Are any currently delinquent?

If so, to what degree?

Anonymous · ‎01-30-2017

Is the loan enough to pay them all off or are you trying to figure out which ones to pay? You mentioned saving money. You may be able to settle if they are delinquent and pay less, but you will probably have your accounts closed. They may also put a notation that you settled for less than you owed. If the loan is enough, then I would pay them off and then you have one payment. Your accounts would still be open. I would be careful using them as to not get back in a bad situation. I say that because it's what I did. I got loans to pay off credit cards, but then I kept using them, putting me back where I was.

Anonymous · ‎01-30-2017

@Anonymous wrote:
I am a 25 year old that has been stupid with credit cards. I currently have 10 with a total of 10k in debt. I just took out a loan with lending club to pay them all off. Ive heard people say that you can call and work deals to save a little money. Anyone have any tips or pointers?

All advice much appreciated. Thanks in advance!

I would be interested in the lending club loan you've taken out. Those kinds of loans can have high interests. Yeah, they will help with the credit cards but you could be in a deeper financial hole with them. Have you tried a personal loan with your bank? I, too, was stupid with credit cards. I mean, my first week of college, there were these booths where they were, literally, handing out credit cards. All you had to do with sign and date the app. No income needed. For a kid with no self control that was something that was not going to end well.

You don't say how far deep into this you are. If you are temporarily without a source of income, I'd use that loan and just pay the minimum (or enough to bring you current) each month. Granted, I respect your privacy but not sure what sort of problem(s) you're having other than assuming something happened with the credit cards that necessitated taking out a loan with lending club. Any harm you do with your credit is going to follow you for awhile so the quicker you can get back on track, the better. For me, I wouldn't call the credit card companies about this, if it is at all possible. In other words, I'd use the loan and get everything caught up and, hopefully, the loan provides you with a good enough buffer.

Truly wish you the best of luck.