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Paying off credit cards.

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Paying off credit cards.

Old 10-22-04, 06:21 PM
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Paying off credit cards.

I have quite a bit of cc debt after college, around $8500 worth. Just curious as to some good ideas to pay if off. This amount it spread over 4 cards, whats a good way to pay if off? I was thinkin about gettin a loan for the total amount that way I only have 1 monthly payment to worry about. Is this a good idea? Where's a good place to get a loan? My current bank?

thanks for any info. i love u all.
Old 10-22-04, 06:31 PM
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step 1 - acquire money
step 2 - use money to pay debt
step 3 - profit
Old 10-22-04, 06:33 PM
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rolling up debt.

Take your lowest CC bill. Throw all available money at that, while making the minimum payments towards other debts. Once that's paid off, take the next lowest and do the same. Rinse repeat, until you are out of debt.
Old 10-22-04, 06:33 PM
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Use another bank.

Here's picture of someone getting a low-interest "loan" from a bank:

Old 10-22-04, 06:35 PM
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Old 10-22-04, 06:38 PM
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Originally posted by Deftones, Esq
rolling up debt.

Take your lowest CC bill. Throw all available money at that, while making the minimum payments towards other debts. Once that's paid off, take the next lowest and do the same. Rinse repeat, until you are out of debt.
depends on interest rates though
still using the same principle of paying one off then rolling the money towards the next..

might not see results as quick if you go after the highest interest rate ones.. but you should get done quicker, because you will spend less in interest charges.
Old 10-22-04, 06:40 PM
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Transfer as much balance as you can to your low interest cards. Get a new low-interest card if you can. Then pay off the high interest cards first.
Old 10-22-04, 06:40 PM
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Call your credit cards and see if they'll lower your rate.

To the extent you have credit available on one card, see if you can get a lower rate on balance transfers.

Then pay off your cards. Pay the cards with the highest rate first, but pay the minimum balance on all cards every month.

Avoid spending money if you can. Obviously, you need the essentials (groceries, rent, etc.), and everyone needs some luxuries, but before you buy anything, ask yourself if you really need it. Most of the time, you don't.

If you have the kind of job where you can get overtime, work overtime.

And as you pay off your debt, be sure not to rack up new debt. Cancel high interest cards as you pay them off. At the very least, put them someplace safe and don't use them. If you do get a consolidation loan (only get one if and to the extent that you're getting a lower rate than you are on your individual cards), don't run your credit cards up again.
Old 10-22-04, 06:42 PM
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or call them all and ask them to raise the limit so that one of them is enough to hold it all.. and get them to lock you in at 1.9 or 2.9% for all balance transfers.. and move them over.. (get a new card if needed).. and get rid of the ones that get paid off.
Old 10-22-04, 06:42 PM
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Make minimum payments on three of the cards, and throw money like crazy at the highest interest rate card. Live a little cheaply to scrounge up the extra cash, be paying at least $400 or so per month extra towards the card with the highest interest rate. Don't make any new purchases on credit cards in the meantime, pay cash or check for everthing. Don't buy a new car anytime soon, the car payment would really eat into what you are throwing towards the credit cards.

Once you the highest card paid off, cancel it and start throwing money at the next highest interest rated card.

Once all four cards are paid off, never buy anything on a credit card that you can't pay off at the end of the month. Nothing.
Old 10-22-04, 06:43 PM
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It's all about the interest rates. If you can get a consolidation loan at a better rate, do it and pay them all off. SImilarly, if one will let you transfer the other balances at a low rate, do that.

But, as has been posted, this is worthless if you continue to spend and create new debt...
Old 10-22-04, 06:44 PM
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And...only sell body parts as a last resort...
Old 10-22-04, 07:45 PM
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www.fatwallet.com finance forum, lots of FAQ's, read them!

http://www.creditnet.com if you are thinking BK
Old 10-22-04, 09:41 PM
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Re: Paying off credit cards.

Originally posted by Maxwell Smart
I have quite a bit of cc debt after college, around $8500 worth. Just curious as to some good ideas to pay if off. This amount it spread over 4 cards, whats a good way to pay if off? I was thinkin about gettin a loan for the total amount that way I only have 1 monthly payment to worry about. Is this a good idea? Where's a good place to get a loan? My current bank?

thanks for any info. i love u all.
Above all, stay focused on the goal!
You will get out of it, and it will take time, but believe me, when you're out of it, you'll be amazed at how much flexibility you'll have.

I was in the exact same situation you're in 3 years ago and today I'm debt free with about 5k saved in the bank.
Old 10-22-04, 09:50 PM
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Originally posted by JasonF
And as you pay off your debt, be sure not to rack up new debt. Cancel high interest cards as you pay them off.


Actually, this is a bad idea. It will hurt your credit score. Part of your credit score is based on you available credit. If you cancel cards as you pay them off, it will look like you are maxed out on your credit.

At the very least, put them someplace safe and don't use them.


This is a better idea, though resisting temptation will be hard. I think this might be best though, because its good to have available credit just in case there is an emergency.

If you do get a consolidation loan (only get one if and to the extent that you're getting a lower rate than you are on your individual cards), don't run your credit cards up again.
I'm actually not sure you can get a consolidation loan unless you own a home.

My advice:
Try to get a lower interest rate by either calling you credit card companies and requesting it or applying for a new card with a low intro rate or low permanent rate. My highest balance credit card is currently at 4.5% by doing this exact thing.

Second, pay off either your highest interest card 1st or lowest balance card 1st and then move on to the next (as Deftones advised).

I'm currently trying to reduce debt. I've had moderate success (only because I have terrible self discipline). I've managed to pay off about $5k in the last 6 months or so (with help from some unexpected cash).
Old 10-23-04, 01:47 AM
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Be sure to examine the situation(s) that lead to the debt and try not to repeat. I'm sure you won't want to after paying it all off though.
Old 10-24-04, 12:12 PM
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Originally posted by DodgingCars


I'm actually not sure you can get a consolidation loan unless you own a home.
Huh??? Of course you can! All you need is income or assets. If you're confusing this with a home equity loan (likely), then you shouldn't be giving any financial advice on any forum. These are basic concepts.

And I would NOT simply pay off the high-interest loans first. You should read the thread as there's some good advice here. Best bet is to transfer balances to a low-interest account. Try to pay off any existing balance first, because payments will reduce the low-interest transfer and the high-interest original balance will still be charged. Or else open a new account with a low rate for balance trqansfers and move over as much as you can.

Or else get a consolidation loan if its lower rate than the cards, but it might not be. More likely you can get a low-interest transfer rate. If it's for just a year or other limited time, transsfer again to a new account before it expires.
Old 10-24-04, 03:32 PM
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You can only consolidate student loans one time, unless you borrow more college money again. This is NOT tied to any kind of home loan in any way.

Canceling cards after paying them off will have a negative impact on your credit score. Part of your score is having accounts that have been in good standing for a long time period. Having a balance over 50% of your credit limit will have a negative impact on your credit score.

Turning credit card debt into a personal loan (the consolidation i think some people are referring to) is a bad idea. I would work on tranfering the balances to 0% APR accounts offered by Citibank, Household Bank, GM Card - these Credit Cards all have 0% bt's and NO bt fee...

I would read info at fatwallet.com
Old 10-24-04, 08:10 PM
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Originally posted by drmoze
Huh??? Of course you can! All you need is income or assets. If you're confusing this with a home equity loan (likely), then you shouldn't be giving any financial advice on any forum. These are basic concepts.


When I was looking into consolidating my credit cards into a lower interest loan -- I couldn't find any place that would do it, unless you were a home owner.

I think my advice was actually very good, thank you.

And I would NOT simply pay off the high-interest loans first. You should read the thread as there's some good advice here.


I read the thread and I didn't advise to simply pay the high interest credit cards first.

Last edited by DodgingCars; 10-25-04 at 01:27 AM.
Old 10-24-04, 08:50 PM
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Originally posted by drmoze
Huh??? Of course you can! All you need is income or assets. If you're confusing this with a home equity loan (likely), then you shouldn't be giving any financial advice on any forum. These are basic concepts.
Whoa buddy..... watch out for the personal comments on here. If you have a problem with the poster, take it to email.


And I would NOT simply pay off the high-interest loans first.
From my reading, the advice was to move the loans to a lower interest medium, whether that's a lower interest card, home equity loan, personal line of credit, etc. was not necessarily specified. Unless the OP is able to move all of the debt to one source, there will still likely be one loan at a higher rate than the others. In which case, from a purely mathematical standpoint, paying off principal on that loan will buy you more leverage in the overal debt reduction.

There is nothing wrong with that advise.
Old 10-25-04, 01:30 AM
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What's your montly income and what's your monthly expenses?

It's hard to tell you what to do without some more details of your situation.
Old 10-25-04, 02:14 AM
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I think you should destroy all your credit cards. Try to move all the money you owe on to one account. Then setup a automatic payment system to pay it off. The easiest way to do that would be to signup for free online banking and set it to transfer over 200 a month or more. The less you pay a month the more you are going to pay down the road. You want to get rid of that high intrest debt as sooon as you can.
Old 10-25-04, 03:01 AM
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Originally posted by matta
Whoa buddy..... watch out for the personal comments on here. If you have a problem with the poster, take it to email.
Excuse me if I have too little tolerance for bad/wrong advice, but I certainly appreciate quality standards when I'm seeking information on a topic, and expect that others feel the same.
Old 10-25-04, 12:54 PM
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1. Make a budget
2. Stick to it
3. Don't create more debt
4. Pay off debt

Pretty easy. Remember, it took you several years to build it up, so you can't really get rid of it overnight. I like the pay off lower balance method, since you get to experieince a "win" much quicker. I'd rather have four "wins" over the next 2 years, instead of 1 win at the end of 2 years. Helps keep you motivated. Also, think about selling stuff or taking a temporary part-time job to help get out quicker. BTW, you never said what your salary is.
Old 10-25-04, 01:17 PM
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Thanks for all the replies guys. I think I might try the pay off lower cards first, because your right u see the reward faster and it gives u motivation. I'd say after expenses (non credit card payments) I probably have 500 a month to use towards paying off my cc's.

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