# To much Credit Cards Debt



## Bigj (Jul 22, 2007)

Exe wife got me in deep Credit Card debt anyone ever use on of those company that help you get out of Credit Card debt


----------



## Outearly (Nov 17, 2009)

Look up Dave Ramsey's Total Money Makeover -


----------



## carryyourbooks (Feb 13, 2009)

Outearly said:


> Look up Dave Ramsey's Total Money Makeover -


This is the best way. We are going through this process as well. Its not an overnight task. It will take us several years, but if you listen to Dave's teachings, you will be better off. Its more than just paying off your debt, you have to get rid of cc's all together. They are the devil!!


----------



## Whitebassfisher (May 4, 2007)

carryyourbooks said:


> .....Its more than just paying off your debt, you have to get rid of cc's all together. They are the devil!!


I guess each has their drug of choice. I find credit cards useful and convenient, but have always paid them off 100% each month. It's either a card or carry a lot of cash.


----------



## al_carl (Jan 20, 2012)

Outearly said:


> Look up Dave Ramsey's Total Money Makeover -


X3!

I got completely out of debt nearly 10 years ago. Just working on the house now. I only have a debit card and I've traveled all over the country and internationally with it.


----------



## al_carl (Jan 20, 2012)

Bigj said:


> Exe wife got me in deep Credit Card debt anyone ever use on of those company that help you get out of Credit Card debt


But as to your original question. I don't trust them. There are normally 2 types. The first will consolidate all your cards into one lump sum, try to reduce the interest and you make one payment to them while they make multiple payments to the various card companies. Problem is you pay the CONsolidation company a fee to do this when you can do it on your own.

The second type is an even bigger rip-off. You send them a monthly payment and they do NOTHING. They sit on your money and don't pay your credit cards. This causes them to go into default and after some number of months they work a settlement to pay off your (now) bad debts for a lower amount. I would definitely not go this route!

When I got into money trouble back in the 90s (young and dumb) I used a company that did the first way. They didn't pay everything correctly and I came out on the other end owing more on one card than I did going in.


----------



## jtburf (May 26, 2004)

Minimal Payment on all but the highest interest card/largest monthly payment card, then as much on that card until it is paid, repeat process until all are gone, call and cancel any card that you pay to have ...I.E if XXXXX Bank charges you 50.00 a year just to carry their card kill it. simply cut the other up. you do need them, just need to learn how to not overspend. Also majority of the country does the same with credit. Consumer Credit dept is a HUGE dollar amount and drives the economy a long ways.


John


----------



## Mark454 (May 21, 2007)

I went with one of those companies back in 1999. Like al carl said they lumped it all in to one payment that I could afford and they distributed the payments out to the credit card companies after they stopped the interest and lowered the payout on the cards.

I also did like jtburf sugested. When one was payed off I myself took that money and put it toward paying extra on another card until that was payed off and just repeat. 

Worked out great and a few years down the road my credit rating was up into the 800 range.


----------



## DIHLON (Nov 15, 2009)

If you credit isn't already screwed, get a new card with 0% interest on balance transfers. Transfer the debts to this new card and pay them off without interest ASAP. Once the balances are transferred, CUT UP THE CARD SO YOU CAN'T CONTINUE TO USE IT!


----------



## Garwood57 (Jul 1, 2007)

Once you get out of debt, use the cards and pay them off entirely each month. Enjoy the rewards they bring (air, travel, cash back)


----------



## Hawglife (Mar 9, 2014)

DIHLON said:


> If you credit isn't already screwed, get a new card with 0% interest on balance transfers. Transfer the debts to this new card and pay them off without interest ASAP. Once the balances are transferred, CUT UP THE CARD SO YOU CAN'T CONTINUE TO USE IT!


Yeah that is the way I have gotten my self out of credit card debt a few times. The cards will charge you a small fee to do this, but if you actually take advantage and pay the cards off, it ends up being cheaper.
Sometimes, depending on your credit they will offer 0 fee for your transfers for up to a certain amount of time of opening the card, so that is also a good option, but again you have to be responsible with them, and pay them off etc...


----------



## 98aggie77566 (Jul 7, 2009)

Whitebassfisher said:


> I guess each has their drug of choice. I find credit cards useful and convenient, but have always paid them off 100% each month. It's either a card or carry a lot of cash.


I agree...credit card debt is the devil...it's not the card.

I've paid less than $20 in interest on our credit cards in a total of 20 years.

Approximately 50% of our monthly spend goes on the card:
- I get to use their $ for monthly capital....and leave mine invested
- I get 1% cash back
- makes it easier to track expenses
- keeps cash out of my wallet which is certain to disappear

Keeping an ending balance at $0 is the key.


----------



## TA_Fab (Aug 20, 2016)

Might try a debt consolidation firm. I'm not familiar with it but I had a family member get deep in debt and that was the route they took. 

I only use a credit card that way if it gets stolen theirs no direct link to my bank account. Pay it off every 2 weeks to try and remind myself that the money is already spent. Never had an issue. 


Sent from my iPhone using Tapatalk


----------



## al_carl (Jan 20, 2012)

98aggie77566 said:


> I agree...credit card debt is the devil...it's not the card.
> 
> I've paid less than $20 in interest on our credit cards in a total of 20 years.
> 
> ...


First off, I'm not saying you do this so don't take it as an attack, just quoting you as an example.

One thing to be careful of here (for all of us) is that we are likely to spend more on credit cards than we do with cash, and even debit cards, because it doesn't feel like real money. If you spend 10% more and pay it off but you get 1% cash back you really aren't ahead. Now, if you use it to pay fixed costs like utilities and maybe auto fuel that you don't splurge on then there may be some negligible benefit.

Bottom line, you could get caught up in the cash back or miles and spend money that you could be investing in order to chase peanuts. Again, this isn't everyone.


----------



## Its Catchy (Apr 10, 2014)

Bigj said:


> Exe wife got me in deep Credit Card debt anyone ever use on of those company that help you get out of Credit Card debt


I highly recommend the Dave Ramsey approach. He is a perfect coach for someone in your shoes.

Most companies that offer to "help" consolidate your cards are looking to make a buck off you in the process. Which is the last thing you need.

Long and short of it do exactly as others have stated. Pay off one card at a time. Typically the one with the highest rate.

To go a little deeper you need to cut out any extras. If you are making payments on a 60,000 dollar truck, sell it. Buy a 3,500 dollar mechanically sound auto that will get you from point A to point B.

Bye bye to Cable TV. Dining out and expensive fishing trips! Do a forum search on cutting the cable, learn to cook and wade fish from the shore.

Long story short if you are willing to cut out all of this (most people are not) you will be OK. If there are no frills you can cut and simply can't afford the minimum payments Bankruptcy may be the only remaining option to you.

Good luck and keep us posted with your progress!


----------



## BATWING (May 9, 2008)

Hitting the debt ceiling in my late 20's was a hard life lesson. I was conned into using one of those companys. Once I found out exactly how it worked it was to late. Yes you will pay off debts in months to a couple years but you will also be financially ruined from a credit perspective for 5-10yrs. On top of that you will be paying commissions for something you can do yourself on much better terms. Those people are like gypsies.


----------



## Its Catchy (Apr 10, 2014)

al_carl said:


> First off, I'm not saying you do this so don't take it as an attack, just quoting you as an example.
> 
> One thing to be careful of here (for all of us) is that we are likely to spend more on credit cards than we do with cash, and even debit cards, because it doesn't feel like real money. If you spend 10% more and pay it off but you get 1% cash back you really aren't ahead. Now, if you use it to pay fixed costs like utilities and maybe auto fuel that you don't splurge on then there may be some negligible benefit.
> 
> Bottom line, you could get caught up in the cash back or miles and spend money that you could be investing in order to chase peanuts. Again, this isn't everyone.


X 2

Using credit cards, paying them off every month and earning points is great! For those disciplined enough. This strategy is more of an advanced 201 home finance class.

I think in this case the person in question needs more of a Dave Ramsey 101 get out revolving credit card debt first.


----------



## SD Hawkins (Jan 2, 2008)

Dave Ramsey snowball, pd off 14K in combined CC debt when wife and I got married. We use 1 card, others stay in the safe. You need to still use them once a year though or they will close them, I forgot and 2 got turned off recently, oh well their loss.


----------



## Bozo (Jun 16, 2004)

Well, not knowing your level of debt to income ratio makes it hard to suggest what you need to do to go forward. But, I did it the wrong way and want to warn you against what NOT to do. 

I cashed out my 401K because I found out my ex had run up more debt on cards than we owed on our mortgage. ie well over 100K. Anyway, I was to proud to file bankruptcy and gave my future away to the credit card companies. Don't be like me. The bankruptcy laws are there for times like that and I recommend you taking advantage of them. 

If you're debt ratio to income is much less than that sort of drastic situation, then the snowball method will work over time. It'll take years and isn't an instant solution, but it works.


----------



## 98aggie77566 (Jul 7, 2009)

al_carl said:


> First off, I'm not saying you do this so don't take it as an attack, just quoting you as an example.
> 
> One thing to be careful of here (for all of us) is that we are likely to spend more on credit cards than we do with cash, and even debit cards, because it doesn't feel like real money. If you spend 10% more and pay it off but you get 1% cash back you really aren't ahead. Now, if you use it to pay fixed costs like utilities and maybe auto fuel that you don't splurge on then there may be some negligible benefit.
> 
> Bottom line, you could get caught up in the cash back or miles and spend money that you could be investing in order to chase peanuts. Again, this isn't everyone.


I do a cash flow, income statement, and balance sheet for my personal financials every month....can tell you every $ spent for the last 12 years.

Definitely not a problem I have...but I can see how it might be an issue/enabler for some.


----------



## 348473 (Apr 12, 2017)

carryyourbooks said:


> Outearly said:
> 
> 
> > Look up Dave Ramsey's Total Money Makeover -
> ...


No CC's ever. Check out the movie "Maxxed out".


----------



## POC Troutman (Jul 13, 2009)

98aggie77566 said:


> I agree...credit card debt is the devil...it's not the card.
> 
> I've paid less than $20 in interest on our credit cards in a total of 20 years.
> 
> ...


yep.


----------



## gbollom (Apr 16, 2012)

98aggie77566 said:


> *I do a cash flow*, income statement, and balance sheet for my personal financials every month....can tell you every $ spent for the last 12 years.
> 
> Definitely not a problem I have...but I can see how it might be an issue/enabler for some.


Like that. Complete a monthly budget if you haven't already and have time so you can see what extra money you can put towards credit cards or if there is something you can cut out .

Plenty of good advice on this thread


----------



## rringstaff (Jul 25, 2014)

al_carl said:


> First off, I'm not saying you do this so don't take it as an attack, just quoting you as an example.
> 
> One thing to be careful of here (for all of us) is that we are likely to spend more on credit cards than we do with cash, and even debit cards, because it doesn't feel like real money. If you spend 10% more and pay it off but you get 1% cash back you really aren't ahead. Now, if you use it to pay fixed costs like utilities and maybe auto fuel that you don't splurge on then there may be some negligible benefit.
> 
> Bottom line, you could get caught up in the cash back or miles and spend money that you could be investing in order to chase peanuts. Again, this isn't everyone.


that's only the case if you have the mental make up and emotional responses of a 15 yr old high school girl.

Adults just use them as a financial tool.


----------



## Jamaica Cove (Apr 2, 2008)

Tear em up, try to pay em off. As far as those debt consolidation companies, many are a scam. 

You're 66-what you gonna buy in the future? Your credit is already screwed-if you own your house-even with a mortgage, and it's homestead, aint much a CC company can do against you and they can't take SS income-against the law. You probably could let them go to collection and just don't answer your phone except for folks you know!!!???


Too late now, but maybe you should have known what the heck she was doing, noticing all the new clothes/jewelry, etc. and watch your mail/bills.

I try to check my accounts at least twice a week, rarely use Credit cards and always check what she is spending.


----------



## Timemachine (Nov 25, 2008)

Whitebassfisher said:


> I guess each has their drug of choice. I find credit cards useful and convenient, but have always paid them off 100% each month. It's either a card or carry a lot of cash.


Ditto.

that said, I have accrued some debt lately because of all the training classes I am taking.


----------



## Chase4556 (Aug 26, 2008)

Currently doing the Dave Ramsey thing. I already had a good amount in savings, so I went straight to the snow ball effect on paying off credit card balances. About 14 months ago I had a smidge over $20k in credit card debt. Started slow and also did some side jobs for extra money, and Iâ€™m currently at less than $9k and hoping to have it paid off in 6-7months. Doesnâ€™t help that the wife wouldnâ€™t take no on a trip to NYC a few weeks ago. 

Some may disagree, but one thing I did was look at credit card offers that offer a balance transfer with X months interest free. It sounds like taking steps backward, but I was able to move my highest balance card(the one Iâ€™m paying on now) and it cost me about $325 in a transfer fee, but saved me 18 months in interest at about $200 in interest every month. So it more than paid itself off. Allowed me to put more money toward those smaller balances and get them paid off. I am debating if I am going to open another one in a few weeks and move it again just to keep the interest off my back.


----------



## Kenner21 (Aug 25, 2005)

You can do a debt consolidation loan through your bank, basically they cut you a check for everything owed and you pay them large payments for 2 years at a lower interest rate. The key is too not run your cards back up after you zero the balances.


----------



## notthatdeep (Feb 5, 2005)

98aggie77566 said:


> I agree...credit card debt is the devil...it's not the card.
> 
> I've paid less than $20 in interest on our credit cards in a total of 20 years.
> 
> ...


Me too. I have one good card and dont believe I've ever paid any interest on it. Its a different mindset ... matter of them using you or you using them. Just pay on time. Your credit score will thank you too.


----------



## mozingo1952 (Sep 29, 2004)

DIHLON said:


> If you credit isn't already screwed, get a new card with 0% interest on balance transfers. Transfer the debts to this new card and pay them off without interest ASAP. Once the balances are transferred, CUT UP THE CARD SO YOU CAN'T CONTINUE TO USE IT!


 my wife had 15 k in credit card debt when we married. I used the above 
method to wipe that balance over a couple of year and paid no interest.

Now the credit card people pay me 2% to use their card , life is good 
now. 

MO


----------



## mstrelectricman (Jul 10, 2009)

I keep two CCs in my wallet and almost zero cash. Trust me, I spend more than I should but ALWAYS pay off every card every month. Allowing CC debt to get you is just dumb.

DON'T do it! I use their money all month and pay NO interest.


----------



## mstrelectricman (Jul 10, 2009)

BATWING said:


> Hitting the debt ceiling in my late 20's was a hard life lesson. I was conned into using one of those companys. Once I found out exactly how it worked it was to late. Yes you will pay off debts in months to a couple years but you will also be financially ruined from a credit perspective for 5-10yrs. On top of that you will be paying commissions for something you can do yourself on much better terms. Those people are like gypsies.


Exactly! How the heck do you think they afford all those TV commercials?


----------



## Hullahopper (May 24, 2004)

Whitebassfisher said:


> I guess each has their drug of choice. I find credit cards useful and convenient, but have always paid them off 100% each month. It's either a card or carry a lot of cash.


Totally agree with you. They are an extremely useful tool *if they are completely paid off each and every month.* For me and my wife it's two free plane rides to Vegas every year to see our daughter and enjoy the sights.


----------



## old 37 (Nov 30, 2014)

Our system is: My wife and I each have one card to use for gas etc that is paid off each month and each have one with a very high limit used once a year to keep them happy and kept in the safety deposit box for emergencies.


----------



## Blk Jck 224 (Oct 16, 2009)

hurricane matt said:


> No CC's ever. Check out the movie "Maxxed out".


So...How do you reserve hotel rooms, buy concert / plane tickets, or rent cars? I'm thinking you are going to tell me with debit card which is something I've never had. If I'm traveling or decide to make a large purchase I don't want to bother with transferring $ from savings to checkings. Even though my Credit Union will automatically pull $ from savings for checking overdrafts without penalty, I like to be the one managing my $. My OCD will exacerbate if my balance is off. I also think it is better to just have one credit card, & pay the balance off each month. This will help your credit score. Another option to get that CC debt off of your back is to make a loan against your 401K. You can decide how long the note will be to align that payment where you want it. The interest you pay on it will be paid back to you.


----------



## Blk Jck 224 (Oct 16, 2009)

older 37 said:


> have one with a very high limit used once a year to keep them happy and kept in the safety deposit box for emergencies.


LOL...I got a letter from my Credit Union before Christmas telling me that they were raising the limit on my MC to 20K...I called them back and told them that would NOT be happening!


----------



## sharkinaggie07 (Oct 1, 2016)

Hullahopper said:


> Totally agree with you. They are an extremely useful tool *if they are completely paid off each and every month.* For me and my wife it's two free plane rides to Vegas every year to see our daughter and enjoy the sights.


Agreed entirely! I haven't paid for a plane ticket in many moons. Credit cards are a great tool if you carry a zero balance from month to month.

Sorry for your troubles OP.

-SA


----------



## 348473 (Apr 12, 2017)

Blk Jck 224 said:


> So...How do you reserve hotel rooms, buy concert / plane tickets, or rent cars? I'm thinking you are going to tell me with debit card which is something I've never had. If I'm traveling or decide to make a large purchase I don't want to bother with transferring $ from savings to checkings. Even though my Credit Union will automatically pull $ from savings for checking overdrafts without penalty, I like to be the one managing my $. My OCD will exacerbate if my balance is off. I also think it is better to just have one credit card, & pay the balance off each month. This will help your credit score. Another option to get that CC debt off of your back is to make a loan against your 401K. You can decide how long the note will be to align that payment where you want it. The interest you pay on it will be paid back to you.


I use paypal for things like this.


----------



## boom! (Jul 10, 2004)

Blk Jck 224 said:


> LOL...I got a letter from my Credit Union before Christmas telling me that they were raising the limit on my MC to 20K...I called them back and told them that would NOT be happening!


You might should have done that. Itâ€™s one of the fastest ways to raise credit scores.


----------



## Blk Jck 224 (Oct 16, 2009)

boom! said:


> You might should have done that. Itâ€™s one of the fastest ways to raise credit scores.


My score is excellent...I'm not trying to hit 850!


----------



## Its Catchy (Apr 10, 2014)

I am not sure that recommending using a credit card to earn "cash back" or airline miles is good advice for someone swimming in CC debt.

I think the smart advice for the OP would be to go "cold turkey". Transfer everything possible to the lowest rate card, pay off the highest ones first and take small steps.

Once the debt is gone then it will be time to talk about using "earning" cash back or airline miles.


----------



## Lone-Star (Dec 19, 2009)

I got in bad CC debt in college/med school. I did the Dave Ramsey thing and dug my way out of it. Stay away from the companies that you hear advertising to reduce your debt etc., they are without a doubt looking to prey on people in your situation. They will trash your credit.

Go to your bank/credit union and get debt consolidated at a reasonable rate and start whacking away at it. There's no easy way out, it will seem hopeless ar first but you can do it.


----------



## mjz (Jan 11, 2008)

DIHLON said:


> If you credit isn't already screwed, get a new card with 0% interest on balance transfers. Transfer the debts to this new card and pay them off without interest ASAP. Once the balances are transferred, CUT UP THE CARD SO YOU CAN'T CONTINUE TO USE IT!


I've used this method myself, granted my debt was tiny (always paid on time, paid more than the minimum, made an extra payment here and there).

No complaints other than lots of "pre approved" junk mail.

I will throw a greenie at Discover though, great CS and no issues with them at all over the last year.


----------



## WineyFishrman (Aug 5, 2011)

DIHLON said:


> If you credit isn't already screwed, get a new card with 0% interest on balance transfers. Transfer the debts to this new card and pay them off without interest ASAP. Once the balances are transferred, CUT UP THE CARD SO YOU CAN'T CONTINUE TO USE IT!


And call the credit card companies and offer them .25 on the dollar to begin with,,you would be surprised


----------



## wbay2crowded (Jul 13, 2007)

Unpopular truth...

STUPID PARENTS
STUPID SCHOOLS

Parents don't teach fiscal responsibility any more. Parents don't emphasize the ignorance of credit card abuse. 

Schools & universities over-emphasize gender carp, race carp, condom carp, social injustice carp, etc, etc, etc....& ignore basic personal finance, which would solve most of the above perceived problems. 

It's no wonder kids & adolescent adults are finding themselves in credit card trouble...no one ever taught them the value of balancing their checkbook, maintaining a forward-looking budget, & saving for contingencies, education, healthcare, & retirement. It ain't rocket surgery. 

Sometimes I think it's a design by those who know that if they deny basic & logical financial education from their underlings, they can always control them. 

Especially at the voting booth.


----------



## JFolm (Apr 22, 2012)

How many accounts? Are your names on all of them? 

How much debt?


----------



## Chase4556 (Aug 26, 2008)

wbay2crowded said:


> Unpopular truth...
> 
> STUPID PARENTS
> STUPID SCHOOLS
> ...


Shoot, my dad warned me time and time again about it. He was even the first one to open a card that had a zero interest balance transfer for a while, and tried to help me. Wasn't about stupid parents who didn't teach or warn... it was about a stupid 21-22yr old who wanted guns and to spend tons of money in downtown Savannah at the bars. No one to blame but myself.


----------



## sharkinaggie07 (Oct 1, 2016)

Its Catchy said:


> I am not sure that recommending using a credit card to earn "cash back" or airline miles is good advice for someone swimming in CC debt.
> 
> I think the smart advice for the OP would be to go "cold turkey". Transfer everything possible to the lowest rate card, pay off the highest ones first and take small steps.
> 
> Once the debt is gone then it will be time to talk about using "earning" cash back or airline miles.


I don't think anyone was recommending that the OP do that. My post, as well as other similar posts, were in response to the anti-credit card users on this thread. A credit card can be a very useful tool if used responsibly.

-SA


----------



## Stuart (May 21, 2004)

People would be amazed at what you can do without. I know people with a lot of credit card debt, yet they still have cable @ $125/month, eat out all the time, drive really nice cars, have the latest iPhones etc. Yes, some things are harder to shed like a car if you are upside down, but many things are easy to get out from under, you just have to want it bad enough.


----------



## JFolm (Apr 22, 2012)

Stuart said:


> People would be amazed at what you can do without. I know people with a lot of credit card debt, yet they still have cable @ $125/month, eat out all the time, drive really nice cars, have the latest iPhones etc. Yes, some things are harder to shed like a car if you are upside down, but many things are easy to get out from under, you just have to want it bad enough.


This is 100% true. Many want to keep the lifestyle but have the debt disappear.


----------



## Chase4556 (Aug 26, 2008)

Stuart said:


> People would be amazed at what you can do without. I know people with a lot of credit card debt, yet they still have cable @ $125/month, eat out all the time, drive really nice cars, have the latest iPhones etc. Yes, some things are harder to shed like a car if you are upside down, but many things are easy to get out from under, you just have to want it bad enough.


Dropping cable was the best thing I ever did. Saved me over $100 a month, and the wife is still able to watch whatever she wants through Netflix, hulu or the unlocked Fire Stick and our prime account.


----------



## Bullitt4439 (Sep 18, 2014)

Stuart said:


> People would be amazed at what you can do without. I know people with a lot of credit card debt, yet they still have cable @ $125/month, eat out all the time, drive really nice cars, have the latest iPhones etc. Yes, some things are harder to shed like a car if you are upside down, but many things are easy to get out from under, you just have to want it bad enough.


Green sent. Well said.

People dog on me for having a $55 cell phone, paying $25 a month for service, having no cable, two cheap vehicles, and a cheap boat, but they are all 30k+ in debt and wonder how I go hunt/ fish/ race cars every weekend.

It may have taken me 3 years to earn my associates, but I am proud to have no debt for the past 9 years. (until I decide to buy a house)


----------



## Its Catchy (Apr 10, 2014)

There are only two ways to get out of any financial pickle. Make more or pay out less. Most use a combination of adding an extra income and cutting back.

Cutting cable is one of the easiest ways to save 100.00 a month. Selling a 60,000 dollar truck and driving a POS for a year or two can save someone thousands a year. Eating out is a big no no when trying to dig your way out of a hole.

As far as adding extra income. Since you no longer have cable to sit around and watch, get out and find some extra work. An additional part time job can pay dividends. Selling some of the tools or other junk that you have not used in the last 15 years can raise a lot of cash in a hurry. Learn to sell them on Ebay or Craigslist for more than just garage sale money.

Nearly everybody has a hobby or skill set someone else will gladly pay for. I build crab traps in my garage for extra $$$$. My neighbor buys and repairs old HAM radios for extra cash. Nowadays with internet options like Ebay, Craigslist and Etsy their are literally thousands of ways to turn a hobby or skill into extra cash. I have seen some incredible projects on the 2cool DIY and woodworking forums. Fishing rods, lures, pens, knifes, homemade tables just about everything I am sure people would pay for.

Good luck to the OP. Check back in with us and let us know how you are doing.


----------



## poppadawg (Aug 10, 2007)

Spend less than you make. Had an ex girlfriend that had 60k in debt. 60k! She just walked away from it. Far as I know, it never affected her in a negative way. If you can't pay your cc debt every month you spend too much money. Period. Grow up.


----------



## Kar9kun (Jul 2, 2019)

*Financial loans*

That's something you should have predicted a long time ago, while you two were still married. You should always be a bit suspicious about everyone, otherwise they'll think you're fool. A friend of mine loaned money on his name from a credit company to buy a car for his wife, and she divorced while he was still returning the money for the debt. She left him with no car and no money. This was a lesson for me but it should be for you also. You know, in some cases you can't eve trust your mother, but you're hoping that your wife will never leave you? Fool. Although I took a loan from Wonga, I didn't gave one cent to my wife. Let her apply for its loan if she wants money.

Wonga loans review: https://credit-10.com/za/wonga-loans/


----------



## rglide09 (Mar 21, 2012)

Suck it up and pay it off. I let a cc deft get out of hand during a remolding project to around 16k. Took 4 years but made the last payment this month. 


Sent from my iPhone using Tapatalk Pro


----------



## ktdtx (Dec 16, 2006)

I hate those radio ads "Don't let those credit card companies trick you into thinking you have to pay back your debt"


----------



## BFI-TX (Nov 26, 2016)

There has been some great advice given here. I made lots if stupid financial mistakes in my younger years...lots! One problem is today's culture and advertising. Big corporations and credit card companies spend millions upon millions to convinced the consumer that you deserve to get anything you "want" and you deserve it "now". Dave Ramsey teaches financial discipline and responsibility. Do yourself a favor, listen the advice so generously given here, and become a student of Dave's philosophies and techniques TODAY! The problem is can get out of debt only to slide down that slippery slope again and again. Ask me how I know. Use his techniques to get out of debt and develop the discipline he teaches to live by. As mentioned above, it will take time and a lot of scrimping but it can be done. From there, the pain of your mistakes and your new found discipline will give you the financial self control you need. Dave's concepts are quite simple. For example, if you can't pay for it in cash you cant afford it. I'm sorry to here of your situation, I wish you well in digging yourself out the hole you created. If you need some of Dave's material PM me, I could probably scrounge something up.


----------



## BFI-TX (Nov 26, 2016)

I just saw in my e-mail that Dave Ramsey is doing a live stream event. Check it out and get the ball rolling. Hind sight is 20/20. Accept your screw ups and set yourself up for "Financial Freedom". Learn the difference between wants and needs. Come to the realization that wants are out of the picture for now. Develop a budget and stick to it no matter how uncomfortable it feels. One thing Dave teaches is to put your day to day spending allowance in cash in envelopes. Another is to track every last penny for a month. These 2 actions will give you a more direct connection to your money and impulsive spending and when the envelop is empty your done....it's ramen noodle time lo...l not lol.


----------



## Spec-Rig.006 (Nov 2, 2007)

jtburf said:


> Minimal Payment on all but the highest interest card/largest monthly payment card, then as much on that card until it is paid, repeat process until all are gone, call and cancel any card that you pay to have ...


Agreed in part. MAKE minimum payments first, on all - PAY yourself first in savings, and use a special monetary vehicle that will use your equity to pay the cards off. Even at a LOW rate of guaranteed return (say 4%), each of your dollars can still spend like two.

DO NOT make big payoffs on cards with raw cash. The future value of money SPENT is $0 ...

If you were younger, I'd recommend a Whole Life policy, or a UVL.

TALK to a financial advisor if you're coming up short on ideas. Debt consolidation loans are NOT really good ideas. All you're really doing is moving interest to another collector. You want to make sure the interest you pay, you pay yourself.


----------



## OO7 (Oct 4, 2019)

Spec-Rig.006 said:


> Agreed in part. MAKE minimum payments first, on all - PAY yourself first in savings, and use a special monetary vehicle that will use your equity to pay the cards off. Even at a LOW rate of guaranteed return (say 4%), each of your dollars can still spend like two.
> 
> DO NOT make big payoffs on cards with raw cash. The future value of money SPENT is $0 ...
> 
> ...


Don't do this....


----------



## al_carl (Jan 20, 2012)

Funny how we are all back here on this thread because one guy (Kar9Kun) went around the site and necro'd a bunch of old threads, I guess to try and sell stuff, and then got himself banned. One was over 3 years old when he tried to resurrect it. 

Anyway, what are you smoking Spec? Whole life is a terrible product, if you get a quote for Whole or UVL then get a quote for term and invest half the difference you will have more money in your pocket and more money saved when you are done. The rate of return in those things is abysmal. 

The other half of your advice is faulty as well. You are suggesting the guy make minimum payments on cards that are charging him somewhere around 20% interest so that he can save money that will earn 4% to turn around and pay down the cards?

The future value of money NOT spent paying down high interest cards is LESS than 0.

How about he earn 20% on his money by paying the cards off, then turn around and invest and get to keep the interest.


----------



## Lovin'Laura (Jun 28, 2016)

1. MAKE minimum payments first, on all - PAY yourself first in savings, and use a special monetary vehicle that will use your equity to pay the cards off. Even at a LOW rate of guaranteed return (say 4%), each of your dollars can still spend like two.

2. DO NOT make big payoffs on cards with raw cash. The future value of money SPENT is $0 ... 

3. If you were younger, I'd recommend a Whole Life policy, or a UVL.


4. Debt consolidation loans are NOT really good ideas. All you're really doing is moving interest to another collector. You want to make sure the interest you pay, you pay yourself.

TERRIBLE ADVICE. ON ALL 4 POINTS.


----------



## Jigger (Feb 12, 2009)

I have terrible credit. I pay with cash. Credit is not needed in my household. The only thing we finance are houses. How, you say? If you find a regional bank that cares about what they do, they will finance you. My last house was 230k. I bought it with a 540 credit score.

I dont fly frequently. No need for miles acrued. If I want to go somewhere, i pay for it and go. I know a few millionares and they never told me they became that way with cash back, flyer miles, blah f blah.

I paid cash for 2015 car a few years ago. Paid cash for my ole truck to tow the ole boat I paid cash for. I dont care about your lifted F250 with 30" wheels and 36" tires...seems like you may have Florida Georgia Line in the CD player...and a bunch of debt. Big hat, no cattle. Be glad you make a lot of money. if you lost that job all your $hits going down the drain. 

I have friends that make more than me that live week to week. Struggle to go fishing on the weekends.

My yearly income?? almost 100k


----------



## bryan28 (Aug 22, 2013)

The credit agencies screw you over on your credit score if you don't have credit cards. You don't have to use them but need the line of credit available to you. I haven't used a cc in years and now they're closing my accounts due to inactivity. Not having the line of credit available is affecting my scores negatively.

They also hose you for paying items off early. I pay off my vehicles, boat, etc off early and my scores always reflect negatively because I'm technically not paying my bills on time. I took out a 10 year loan on my boat and had it paid off in less than 2 years. My 5 year truck loan was paid off in 2 years also and since I'm not showing a lengthy payment history I take a hit to my score.

I'm not one that wants the gov't to regulate much of anything but something should be done about the way your credit scores are figured. If you're paying early you should be rewarded. There should also only be one way to calculate your credit score. The big 3 credit agencies all show 3 different scores for me which makes no sense. My credit history is the same from one agency to the next so why do they show different scores?


----------



## Liv'n_the_dream (Jun 11, 2016)

Iâ€™ve done both ways, all cash for 20 years except for my house which I paid off early, and now I charge everything and pay it off, have financed cars and rental property. Itâ€™s all about having the assets to weather downturns and donâ€™t over extend. Have a plan, work the plan, evaluate and readjust the plan routinely 


Sent from my iPhone using Tapatalk


----------



## ReedA1691 (Jan 29, 2018)

In the 37 years since I got my first credit card, I have paid the entire balance off monthly all but maybe 10-15 months (out of like 450 months). Almost all of those were when my monthly balance was under $200, so the interest incurred was fairly minimum (most of those times involved a wife who spent money faster than I could earn it) 

Now I take advantage of the rewards programs that cards have. I get 1% on all purchases and 5% on all category purchases - categories change quarterly. I use it for everything but strippers and drugs - LOL. I have gotten about $450 cash back this year. I pay no fees. I use their cards for my convenience and I come out ahead and in the black.


----------



## rtmorandi (May 13, 2019)

Credit cards are not the devil and as Reed stated above, the rewards are quite nice. We use our CC's quite frequently and pay off each month, while earning the rewards. I think we have about 1,000,000 points with Amex and I think the dollar value is close to $10,000 which we can apply to everything from purchases to credits on everyday charges. Yes, there is an annual fee of $450 but that pays for itself pretty quickly.

It all boils down to financial discipline, just like everything else. Plus, it is nice to have when filling up the boat with 418 gallons - I don't carry $1,000+ in my wallet, so the CC is convenient.


----------



## boom! (Jul 10, 2004)

Jigger said:


> I have terrible credit. I pay with cash. Credit is not needed in my household. The only thing we finance are houses. How, you say? If you find a regional bank that cares about what they do, they will finance you. My last house was 230k. I bought it with a 540 credit score.
> 
> I dont fly frequently. No need for miles acrued. If I want to go somewhere, i pay for it and go. I know a few millionares and they never told me they became that way with cash back, flyer miles, blah f blah.
> 
> ...


Theres a little more to it than that. I promise that you are paying more for your mortgage interest rate with a 540 than a person with an 815. You are also paying more for insurance, utilities and many other things. Also know that most companies look at a credit report before filling positions.

Paying cash is not a bad thing. Paying cash with a high credit score is much better. Money has been so cheap recently (with a good score) that Iâ€™d rather use someone elseâ€™s money for fun and keep investments working. :brew2:


----------



## c hook (Jul 6, 2016)

*lol*



Its Catchy said:


> I am not sure that recommending using a credit card to earn "cash back" or airline miles is good advice for someone swimming in CC debt.
> 
> I think the smart advice for the OP would be to go "cold turkey". Transfer everything possible to the lowest rate card, pay off the highest ones first and take small steps.
> 
> Once the debt is gone then it will be time to talk about using "earning" cash back or airline miles.


good sound advise. this thread became a "how smart i am with my card"lmao. Instead of recommending a reasonable solution for the OP. :texasflag


----------



## Davidsel47 (Apr 10, 2019)

I grew up poor and never had much but i never knew I was poor because we were a happy family. My family being poor never talked about any type of saving, building credit or any money matters at all. I worked watermelons every summer since 6th grade but never really saw most of my paychecks. My mom put it away for my school clothes and school supplies, i'm sure it helped pay bills and put food on the table as well. I signed up for the military my junior year and shipped out a few days after graduation and all off a sudden i'm managing $400 every 2 weeks and never have been outside of the 6000 people town I grew up in. I got in financial trouble really fast. Every military town is full of unscrupulous lenders looking to take advantage of young soldiers. After my 7 year hitch in the Army I found myself in the oilfield making 6 figures with bad credit. I made the mistake of saving then just paying cash for everything I needed or wanted. After a few years I was still making lots of money but i never took the time to build my credit because I was just paying cash all the time. I was having trouble buying a house, not getting a good rate on my insurance. Its an upward battle getting your credit right because collection company's do a lot of underhanded things to keep things on that should have been gone with time. It was hard building my credit up to where i was getting good rates, credit cards with decent lines of credit and so forth. Now with my lessons learned I have been on my kids about credit, savings and financial responsibility since they were young children so they don't have to go through what I did. I have truly been blessed with really good jobs since I left the military and i'm very great full for everything I have.


----------



## c hook (Jul 6, 2016)

*right*



Davidsel47 said:


> I grew up poor and never had much but i never knew I was poor because we were a happy family. My family being poor never talked about any type of saving, building credit or any money matters at all. I worked watermelons every summer since 6th grade but never really saw most of my paychecks. My mom put it away for my school clothes and school supplies, i'm sure it helped pay bills and put food on the table as well. I signed up for the military my junior year and shipped out a few days after graduation and all off a sudden i'm managing $400 every 2 weeks and never have been outside of the 6000 people town I grew up in. I got in financial trouble really fast. Every military town is full of unscrupulous lenders looking to take advantage of young soldiers. After my 7 year hitch in the Army I found myself in the oilfield making 6 figures with bad credit. I made the mistake of saving then just paying cash for everything I needed or wanted. After a few years I was still making lots of money but i never took the time to build my credit because I was just paying cash all the time. I was having trouble buying a house, not getting a good rate on my insurance. Its an upward battle getting your credit right because collection company's do a lot of underhanded things to keep things on that should have been gone with time. It was hard building my credit up to where i was getting good rates, credit cards with decent lines of credit and so forth. Now with my lessons learned I have been on my kids about credit, savings and financial responsibility since they were young children so they don't have to go through what I did. I have truly been blessed with really good jobs since I left the military and i'm very great full for everything I have.


good story, glad you were able to learn and grow from your life experiences. and good that you are able to share this with your kids. also thank you for your service, greatly appreciated. :texasflag


----------



## KIKO (Oct 24, 2006)

I would also sell watermelons during the season and I payed my college tuition doing that. 
Try not to use these credit companies. Credit Bureaus look at it as if you can do it yourself. I also went through a divorce and the court awarded me all the debt, lol. I paid it all in 1.5 years, including my personal vehicles with over 50% going towards child support, health care and filing single taxes. There is no easy way out of it. If you can, find extra work. I do construction sales; roofing, siding, painting etc on the side. I also wake up at 4:00 and makes calls to sell avocados wholesale all over the US and still make it to work by 8 am for a full time job. I'll be happy to share my experience on how I got it done. Feel free to send me a PM


----------



## ReedA1691 (Jan 29, 2018)

rtmorandi said:


> I think we have about 1,000,000 points with Amex and I think the dollar value is close to $10,000 which we can apply to everything from purchases to credits on everyday charges.


My boss has enough points annually on his Amex (between his and his wife's spending) that they take a river cruise in Europe (airfare included) about every 16 months.


----------

