Debt

HeartBrokenAgain · 11-13-2007, 12:37 PM

I was wondering if anyone had any advice for me. I am in debt with credit cards up to about 14000. Its coming to a point where I can barely make my minimum payments. I have about 5 credit cards or so. I have tried to consolidate them by getting a debt consolidation loan, however wasnt approved. I dont know what to do or who can help me whereas im not approved for it as my debt to income ratio is cutting it close. Does anyone have any ideas or advice?
I dont use credit cards anymore, mostly all from when I was 18 and spending stupidly. I have learned my lesson, just the hard way. I also am working on paying off the one with the highest interest first.
Any advice would be helpful thanks!

Kiwi_Sweet · 11-13-2007, 12:46 PM

Hi.

Hang in there.

It seems odd that you wouldn't be approved for consolidation. As those places who offer them typical work with people with "fair to bad" credit.

Is there any other place where you are from that offers credit counseling?

**Hope75** · 11-13-2007, 01:07 PM

Maybe you need to file for bankruptcy. You will still have to pay back the debt but the courts may be able to make reasonable payments for you.

It will wreck your credit for 7 years, but if you have been late or unable to make minimum payments on your cards, or as you've said, your debt to income ratio is too close, your credit is probably not the best right now anyway.

Have you talked to a financial counselor about what your other options are?

How about a cosigner for a debt consolidation loan? Would your parents help you with that?

How did you get so far in debt? (just something to consider because it could easily happen again if you don't recognize what got you there and take steps to put a stop to it.

Bankers24 · 11-13-2007, 01:13 PM

Have you called the credit card company to see if they will lower your interest rate or your minimum payments?

It doesn't hurt to try becuase the worst that can happen is they will say no.

**Hope75** · 11-13-2007, 01:28 PM

Quote:

Originally Posted by Bankers24

Have you called the credit card company to see if they will lower your interest rate or your minimum payments?

It doesn't hurt to try becuase the worst that can happen is they will say no.

Most card companies will not lower your rate- in fact, if you are only making minimum payments they are more likely to raise the rate than anything.

And the problem with lowering the minimum payments is that you may not even make the interest payments this way and so your balance will go up each month. It's not a way to get ahead, but instead to make your debt grow and become even more out of control.

WaterIsLife · 11-13-2007, 04:11 PM

Try joining a credit union. They may be more willing to offer you a consolidated loan.

Don't let this debt bear down on you. I know its tough not to. It can really get you down. I've come close to starting bankruptcy filings 3 times in the past 2 years or so. I was selling everything that I had that was worth anything. Unfortunately, the only things I had that would be worth something to someone were my work reference books and CDs (I couldn't sell my car or computer! Although I did seriously consider selling my 12 yr old car).

**avman** · 11-13-2007, 06:54 PM

Quote:

Most card companies will not lower your rate- in fact, if you are only making minimum payments they are more likely to raise the rate than anything.

And the problem with lowering the minimum payments is that you may not even make the interest payments this way and so your balance will go up each month. It's not a way to get ahead, but instead to make your debt grow and become even more out of control.

Well, some card companies will indeed lower your rate if they feel you will default on the card or file for bankruptcy. It never hurts to try to work something out with the credit card company because they would prefer to get some of their money versus none of their money if you went bankrupt.

**Hope75** · 11-14-2007, 12:13 PM

Quote:

Originally Posted by avman

Well, some card companies will indeed lower your rate if they feel you will default on the card or file for bankruptcy. It never hurts to try to work something out with the credit card company because they would prefer to get some of their money versus none of their money if you went bankrupt.

With new bankruptcy laws most often you will only qualify for chapter 13 bankruptcy- meaning you are no longer exempt from your debt- you are still held responsible and must pay it and the courts set up payment plans (my sister went through this pretty recently).

The other option is chapter 7 in which a court will delegate a Trustee to work with you, to determine if you have an assets (such as a house, car, other property) that can be liquidated in order to pay creditors.

My experience, both myself calling a credit card company I was struggling in massive debt with while in school, and my sister's experience with several of her own card companies (Chase, Capital One, Bank of America, Discover,) none were willing to lower their rates. They told her (and me) that if we no longer wanted to pay the interest, we could close the account by paying off the full balance.

Like we'd be calling them if we could afford to close the account by paying off the balance!

I'm curious if anyone here has had a credit card company actually lower their rate- since in my experience they have been completely unsympathetic.

**avman** · 11-14-2007, 01:20 PM

Quote:

I'm curious if anyone here has had a credit card company actually lower their rate- since in my experience they have been completely unsympathetic

Wow, I had the opposite experience. When I was laid off some years ago I called my credit cards and they were very helpful. All of them either suspended payments for a couple of months or lowered the interest for like a 6 month temporary period. And that was Citibank and Chase.

**Hope75** · 11-14-2007, 01:38 PM

Quote:

Originally Posted by avman

Wow, I had the opposite experience. When I was laid off some years ago I called my credit cards and they were very helpful. All of them either suspended payments for a couple of months or lowered the interest for like a 6 month temporary period. And that was Citibank and Chase.

Wow! I'm surprised to hear that! Chase was very aggressive with me. I ended up closing my account and locking in the present interest rate and have since paid about 80% of the balance off and hope to be done in a few more months. I had never been late with a payment, never gone over my limit, but had a high balance so they were unwilling to help me. They were, in fact, quite rude.

I'm glad you had a good experience though, maybe there is hope for the OP!

11-13-2007, 12:37 PM	#1
HeartBrokenAgain Offline Member Join Date: Nov 2007 Location: Manchester, NH Gender: Female Posts: 33	Debt I was wondering if anyone had any advice for me. I am in debt with credit cards up to about 14000. Its coming to a point where I can barely make my minimum payments. I have about 5 credit cards or so. I have tried to consolidate them by getting a debt consolidation loan, however wasnt approved. I dont know what to do or who can help me whereas im not approved for it as my debt to income ratio is cutting it close. Does anyone have any ideas or advice? I dont use credit cards anymore, mostly all from when I was 18 and spending stupidly. I have learned my lesson, just the hard way. I also am working on paying off the one with the highest interest first. Any advice would be helpful thanks! __________________ ~There is only one happiness in life, to love and be loved.~

11-13-2007, 01:07 PM	#3
Hope75 Online Super Moderator Join Date: Dec 2004 Location: kitteh ville Gender: Female Age: 33 Posts: 12,506	Maybe you need to file for bankruptcy. You will still have to pay back the debt but the courts may be able to make reasonable payments for you. It will wreck your credit for 7 years, but if you have been late or unable to make minimum payments on your cards, or as you've said, your debt to income ratio is too close, your credit is probably not the best right now anyway. Have you talked to a financial counselor about what your other options are? How about a cosigner for a debt consolidation loan? Would your parents help you with that? How did you get so far in debt? (just something to consider because it could easily happen again if you don't recognize what got you there and take steps to put a stop to it. __________________ Muffin cats need love too. Please refer to the forum rules before posting: http://www.enotalone.com/forum/forum-rules.php Mama to a beautiful baby girl born 6-25-09. :)

11-13-2007, 04:11 PM	#6
WaterIsLife Offline Platinum Member Join Date: May 2007 Location: Sunny Florida Gender: Male Age: 36 Posts: 1,260	Try joining a credit union. They may be more willing to offer you a consolidated loan. Don't let this debt bear down on you. I know its tough not to. It can really get you down. I've come close to starting bankruptcy filings 3 times in the past 2 years or so. I was selling everything that I had that was worth anything. Unfortunately, the only things I had that would be worth something to someone were my work reference books and CDs (I couldn't sell my car or computer! Although I did seriously consider selling my 12 yr old car). __________________ "...because as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns-the ones we don't know we don't know." ~ former USA Secretary of Defense Donald Rumsfeld.

11-13-2007, 12:46 PM	#2
Kiwi_Sweet Offline Join Date: Oct 2007 Gender: Female Posts: 989	Hi. Hang in there. It seems odd that you wouldn't be approved for consolidation. As those places who offer them typical work with people with "fair to bad" credit. Is there any other place where you are from that offers credit counseling?

11-13-2007, 01:13 PM	#4
Bankers24 Offline Bronze Member Join Date: Oct 2006 Location: Atlanta, GA Gender: Female Age: 26 Posts: 212	Have you called the credit card company to see if they will lower your interest rate or your minimum payments? It doesn't hurt to try becuase the worst that can happen is they will say no.