Credit Score Worth Sacrificing????

Anonymous · ‎09-13-2007

OK-

I currently pay ~$650/month in minimum payments....and I am just treading water...if I take that $650 and pound down 1 card at a time, I can pay it all off in ~2 years....but obviously, while I am paying one down the other 6 are going 90+ days past due.....is it worth it to kill my score to get stuff paid off? How long will my score take to recover??? I am looking at doing either this, or a consolidation loan off of Prosper.com in the spring to try to consolidate...any thoughts?

Thanks

Jayray

Anonymous · ‎09-13-2007

As many people on this forum will agree it is hard to exist without a good credit. So no actions are worth sacraficing your scores. Sell something you don't need, cash out your 401K, IRA, life insurance, earn more money, change carrer, do anything and pay it down.

good luck.

Anonymous · ‎09-13-2007

@Anonymous wrote:
OK-
I currently pay ~$650/month in minimum payments....and I am just treading water...if I take that $650 and pound down 1 card at a time, I can pay it all off in ~2 years....but obviously, while I am paying one down the other 6 are going 90+ days past due.....is it worth it to kill my score to get stuff paid off? How long will my score take to recover??? I am looking at doing either this, or a consolidation loan off of Prosper.com in the spring to try to consolidate...any thoughts?
Thanks

Jayray

Wow. Consolidate loans are not that great for credit but I would think 90 day lates on 6 cards would be much worst! I haven't been faced with this so don't really know what is best, but I would rather have a consolidation loan over a 90 day late any day.

Anonymous · ‎09-13-2007

@Anonymous wrote:
As many people on this forum will agree it is hard to exist without a good credit. So no actions are worth sacraficing your scores. Sell something you don't need, cash out your 401K, IRA, life insurance, earn more money, change carrer, do anything and pay it down.
good luck.

Montana had a better point. Selling off stuff even on ebay to pay bills can save a score. I've done this when times were bad to prevent being late. You can also get a personal secured loan if you have a car title or something. Just DON'T miss a payment on that or the car disappears. Hope your situation gets better. I think most of us have been there even more than once.

Anonymous · ‎09-13-2007

NO NO AND NO

Before you get there contact a non-profit CCCS

Anonymous · ‎09-13-2007

I wonder how much of that payment is interest now? The faster you find a solution the better. Do not let it slide even a few more days if you can move the balance. Two years paying the high interest may not be even worth keeping the balance on the CC's. That is something to factor in the choice you make too. If you could pay it all off in 2 or 3 months then maybe, but 2 years at defaulted rates could cost you more money. I would focus on moving the balance. But Brammy knows her stuff. I would try that too.

Message Edited by ilovepizza on 09-13-2007 11:09 AM

MeganML84 · ‎09-13-2007

I am still learning at all this, but have you tried calling any of the CCC and asking them to reduce their interest rates? It would be worth a shot, IMHO...

Wisdom doesn't automatically come with old age. Nothing does - except wrinkles. It's true, some wines improve with age... but only if the grapes were good in the first place.

Anonymous · ‎09-13-2007

It would be worth giving CCCS a look www.cccsatl.org/ I went with them a few years back ... I was up to over 500.00 a month in minimum payments... and enrolled with them and took me down to 360.00 per month in payments. They got my interest rates lowered on all my cards some from 24.9 to 9.9 some from 19.9 to 12.9 and I am in much better shape with my finances right now because of it . I took the wrong path years ago , going with the capital one cards... Providian The Providian cards seemed to get me with credit limit increases just at the right times, then again,, maybe it was at the wrong times... holidays, work was slow, I was away from family,, and it was easy to charge up my world... NEVER again !!! and I will say thanks again to CCCS because they handled my situation with care. Its worth a look ,

scramblingin2007 · ‎09-13-2007

I was in the same boat, I was barely making my minimums every month, scraping by week to week and i was getting screwed with HIGH interest rates. My mom got a low interest loan and I paid all cc's in full. What a GREAT feeling.. Now I don't have to pay 1,000 a month for cc's, I can sock all $$$ away

wLAer · ‎09-13-2007

Whoa, definitely don't go 90 days w/o paying and sacrifice your credit. I wouldn't cash out 401k's, IRA's etc. either. Not only will you lose your retirment, you will get dinged w/taxes and fines!! My recommendation is pay the minimum amount due on 6 of the cards, and then send the most $$ to the one you want to pay off. Hopefully, the minimums due are less than the $650 bucks you have budgeted to pay these down. Consolidation is also bad for credit.

At all costs hurting your score isn't worth it. If you keep paying on time, the scores will go up, and maybe then you can get a 0% offer with a high CL and consolidate all on the one card (or at least some).

Stick to it, and eventually you will knock them out. Good luck!