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Is there a way out of this debt??

BronzeTrader
Valued Contributor

Re: Is there a way out of this debt??

What amazes me is that "Maiden" has been here since 2011 and has had >2,000 posts. This means she knew all kinds of stuff discussed here and she was hevily involved or addicted. I do not blame her. 

 

We have to really take a grain of salt with all the posts here. We are all different. Some of the people here are multi millenaire. Some of the posts are fake with youngster climing making $600,000/ year. Very often, folks here exaggerate they CL and number of CCs. I do not trust all of them.

 

Credit cards are traps for a lot of people. Credit is cheap and it does not take much efforts to receive a $20k CL. But we also need discipline in managing them. Having a $400,000 total CL does not really anything to me. Often time we need to ask for CLD (decrease) to have a CL we are comfortable. 

 

When I manage minor's credit card, I keep the minor's CL at $1,000. No point to ask for a CLI. The utilization rate may be high. But at least the credit is more manageable.

 

Message 51 of 87
Sexyblue
Contributor

Re: Is there a way out of this debt??

To the OP please hang in there, help is on this forum. I am college student and I am currently carrying $42,000, in cc debt. I decided to stay in the garden since 2014, grab a second job and work down this debt. I asked my boy friend to moved in with me to help, since he ran up some debt. He agreed and now that’s an extra $1000, I get from him towards the bills. I cook more an eat out less. I sold items that was in my closet that had tags on them I didn’t wear.

 

My plan – I put everything in to excel posted my accounts to the board and very kind person on here explained who and how I should pay first. I was able to get rate reductions on cards, I paid lowest balance to highest because the interest rates where averaging the same. Coming this February 1, debt will down to $30,000, by the May I will be at $23,000.

 

This takes a lot of discipline and focus. But, please hang in there I know first had how ruff this can be. Just seek out assistance on this forum there are really great people on here from all walks of life willing to help if they can.



TU 660,EX 679, EQ 673,
DiscoverIT19,500 | Barney's NY,16000 | Jcrew, 8000 | Macy'sRed,12000 | Bloomingdales,9000 | Elan Visa, 5000|
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Message 52 of 87
BronzeTrader
Valued Contributor

Re: Is there a way out of this debt??


@Sexyblue wrote:

To the OP please hang in there, help is on this forum. I am college student and I am currently carrying $42,000, in cc debt. I decided to stay in the garden since 2014, grab a second job and work down this debt. I asked my boy friend to moved in with me to help, since he ran up some debt. He agreed and now that’s an extra $1000, I get from him towards the bills. I cook more an eat out less. I sold items that was in my closet that had tags on them I didn’t wear.

 

My plan – I put everything in to excel posted my accounts to the board and very kind person on here explained who and how I should pay first. I was able to get rate reductions on cards, I paid lowest balance to highest because the interest rates where averaging the same. Coming this February 1, debt will down to $30,000, by the May I will be at $23,000.

 

This takes a lot of discipline and focus. But, please hang in there I know first had how ruff this can be. Just seek out assistance on this forum there are really great people on here from all walks of life willing to help if they can.


Blue, I just do not understand how a college student can run up that much debt. No blame on your or anyone. I just do not know. Do your parents pay most of the college costs? Or you just outspent it? Travel? College lift should be simple and the only extra expenses are weekend dine-out etc. I'm just puzzled....

Message 53 of 87
Chris679
Established Contributor

Re: Is there a way out of this debt??


@BronzeTrader wrote:

@Sexyblue wrote:

To the OP please hang in there, help is on this forum. I am college student and I am currently carrying $42,000, in cc debt. I decided to stay in the garden since 2014, grab a second job and work down this debt. I asked my boy friend to moved in with me to help, since he ran up some debt. He agreed and now that’s an extra $1000, I get from him towards the bills. I cook more an eat out less. I sold items that was in my closet that had tags on them I didn’t wear.

 

My plan – I put everything in to excel posted my accounts to the board and very kind person on here explained who and how I should pay first. I was able to get rate reductions on cards, I paid lowest balance to highest because the interest rates where averaging the same. Coming this February 1, debt will down to $30,000, by the May I will be at $23,000.

 

This takes a lot of discipline and focus. But, please hang in there I know first had how ruff this can be. Just seek out assistance on this forum there are really great people on here from all walks of life willing to help if they can.


Blue, I just do not understand how a college student can run up that much debt. No blame on your or anyone. I just do not know. Do your parents pay most of the college costs? Or you just outspent it? Travel? College lift should be simple and the only extra expenses are weekend dine-out etc. I'm just puzzled....


Some people see a $10,000 limit as $10,000 they can spend.  The interest adds up quicker than people realize as well. 

Message 54 of 87
maiden_girl
Valued Contributor

Re: Is there a way out of this debt??


@BronzeTrader wrote:

What amazes me is that "Maiden" has been here since 2011 and has had >2,000 posts. This means she knew all kinds of stuff discussed here and she was hevily involved or addicted. I do not blame her. 

 

We have to really take a grain of salt with all the posts here. We are all different. Some of the people here are multi millenaire. Some of the posts are fake with youngster climing making $600,000/ year. Very often, folks here exaggerate they CL and number of CCs. I do not trust all of them.

 

Credit cards are traps for a lot of people. Credit is cheap and it does not take much efforts to receive a $20k CL. But we also need discipline in managing them. Having a $400,000 total CL does not really anything to me. Often time we need to ask for CLD (decrease) to have a CL we are comfortable. 

 

When I manage minor's credit card, I keep the minor's CL at $1,000. No point to ask for a CLI. The utilization rate may be high. But at least the credit is more manageable.

 


Very true. We must take most, if not, all posts with a grain of salt. When I first came to this forum, I only had one card at the time. A Capital One MTV Visa card with a $750 dollar limit. I'd had that card for well over a year and once I got to this forum, I learned how to converted into a QuickSilver, get a CLI to 5k, and obtain visa signature status at that. That being said, this forum is great for teaching people how to go about improving their credit profile. But it can also be a trap for others who simply do not know or realize that having a CL larger than their yearly income is not something one should be bragging about. If you only make 40k a year, you should not have CLs in excess of 40k.

 

I personally know that I asked for unnecessary CLIs that I knew I would not use but it was nice to know I had there. Since incurring my debt from simply running out of savings and extended unemployment, I have lost most of those CLs anyway. Citi was the most significant loss I took with my CL and thus made my FICO drop from my UTL going up. I had a CL with them of nearly 10k. Soon after I started to carry a balance (around 7k I believe), they CLDd me each time I made a payment and eventually raised my minimum payment to nearly $200 from like $90 bucks.

 

I put this post out as a cautionary tale because I probably could have avoided a lot of this debt had I made wiser money decisions and maybe spent less and lived on the bare minimum while unemployed. Just because you have a 6k CL does not mean you should spend 6k unless you have the means to pay it back right away. But life happens so you gotta pick up and keep going. I definitely appreciate all the awesome advice that has been shared so far and  I will be keeping you guys updated on my progress with this debt as I work to pay it down. Everything is not all gravy with credit cards. They may be nice and helpful now, but once you find yourself  with your head barely above water, they don't even know you and often times will turn you away. I cannot even tell you how many times I was referred to a bankruptcy lawyer by the CCs and I was in more debt then compared to what my balances are now. It is my hope to purchase a home in the next 3 or 4 years and that dream would be nullified by several charge offs and bankruptcy filing.

As of 2017, rebuilding...
Message 55 of 87
trentk102
Regular Contributor

Re: Is there a way out of this debt??

when i use my rewards i just charge what is already budgeted ex: phone, gas car insurance groceries.  Its not new spending its things you have budgeted for and using to rewards to pay down the card some.   You have to pay those things anyway might as well got a small % back to use toward balance.    I do this every month.


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Almost 700 across the board!!!! I'm heading for the garden until 4/2018 at least.
Message 56 of 87
longtimelurker
Mega Contributor

Re: Is there a way out of this debt??


@BronzeTrader wrote:

What amazes me is that "Maiden" has been here since 2011 and has had >2,000 posts. This means she knew all kinds of stuff discussed here and she was hevily involved or addicted. I do not blame her. 

 

We have to really take a grain of salt with all the posts here. We are all different. Some of the people here are multi millenaire. Some of the posts are fake with youngster climing making $600,000/ year. Very often, folks here exaggerate they CL and number of CCs. I do not trust all of them.

 

Credit cards are traps for a lot of people. Credit is cheap and it does not take much efforts to receive a $20k CL. But we also need discipline in managing them. Having a $400,000 total CL does not really anything to me. Often time we need to ask for CLD (decrease) to have a CL we are comfortable. 

 

When I manage minor's credit card, I keep the minor's CL at $1,000. No point to ask for a CLI. The utilization rate may be high. But at least the credit is more manageable.

 


Yes, one of the complaints we hear here a lot is that card X is bad/good because it doesn't/does "grow with you"   Here, growth seems to be tied with either age of card, or increase in FICO, whereas neither of these directly impacts how much you can spend.  Growth, or the desire for growth, should be much more tightly coupled to growth in income....

Message 57 of 87
soloman
Established Contributor

Re: Is there a way out of this debt??

Maiden I congratulate you on your attitude.  You will come out of this with no negatives on your credit because you have a mature and responsible attitude.  You realize you could have avoided this and you are taking responsibility.  You shared your situation because you wanted ideas. In doing so, you also let others including myself learn from your mistakes.  You have saved countless people from debt.  Keep up the good work! We are cheering for you!

In the garden as of March 17, 2017.

Amex PRG NPSL | Amex Hilton Surpass $6K l Aviator Red $3.5K | Best Buy $6K | Amazon $6K | Chase $5K | BBVA $6K | UFCU $10K | NFCU $15K
Message 58 of 87
fordguy89
Valued Contributor

Re: Is there a way out of this debt??

Problem with a debt Avalanche is you see no progress for 6 months, in some cases a year. that does not work with the human psyche. In the future if your income changes downwards, your Avalanche pushes back on you. at least with a snowball once a Card or two are paid off, lenders may increase your limits or offer a balance transfer to hack at whats left.

I see you already have a personal loan another alternative route is to get a higher interest personal loan. It sounds like a terrible thing but if it's interest is less than the credit cards you would still save some money and your credit profile will look better as the debts not in revolvers but an installment loan.
Open one, close three. Open one, close three.
Message 59 of 87
humuhumunukunukuapuaa
Senior Contributor

Re: Is there a way out of this debt??


@Chris679 wrote:

@BronzeTrader wrote:

@Sexyblue wrote:

To the OP please hang in there, help is on this forum. I am college student and I am currently carrying $42,000, in cc debt. I decided to stay in the garden since 2014, grab a second job and work down this debt. I asked my boy friend to moved in with me to help, since he ran up some debt. He agreed and now that’s an extra $1000, I get from him towards the bills. I cook more an eat out less. I sold items that was in my closet that had tags on them I didn’t wear.

 

My plan – I put everything in to excel posted my accounts to the board and very kind person on here explained who and how I should pay first. I was able to get rate reductions on cards, I paid lowest balance to highest because the interest rates where averaging the same. Coming this February 1, debt will down to $30,000, by the May I will be at $23,000.

 

This takes a lot of discipline and focus. But, please hang in there I know first had how ruff this can be. Just seek out assistance on this forum there are really great people on here from all walks of life willing to help if they can.


Blue, I just do not understand how a college student can run up that much debt. No blame on your or anyone. I just do not know. Do your parents pay most of the college costs? Or you just outspent it? Travel? College lift should be simple and the only extra expenses are weekend dine-out etc. I'm just puzzled....


Some people see a $10,000 limit as $10,000 they can spend.  The interest adds up quicker than people realize as well. 


 

College student might also be a single parent with children and no family to help. Putting a lot of debt on cards is not always about fun spending or unnecessary spending.



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Message 60 of 87
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