Posted on
May 26, 2009
at
7:22 am
I am drowning here! Someone please let me know what I could do to get rid of this mess! $48 K in credit card debt...
Posted on
May 26, 2009
at
7:26 am
It depends on several factors. Is that the only debt that you have? Do you have a mortgage? If so, are you current on the mortgage payments? Are you current on your credit card payments? Are you behind on any cards? What are your interest rates? If you do not mind me asking, how much do you pay monthly towards the credit card accounts? I would need a little more info to really give you some helpful suggestions!
Posted on
May 26, 2009
at
7:35 am
Hi Tom- I actually rent (apartment) at this time and do not plan on buying a home for some time. Right now, I am current on all of my monthly payments. However, a while back I fell behind for a bit and the creditors are now charging me (on average) 28% interest!! My minimum payments right now total $1,200 and I just don't know if I can keep this up!! Not to mention I am not getting anywhere with the debt amount itself. Please advise!
Posted on
May 26, 2009
at
7:51 am
Using a credit card payoff calculator (bankrate.com), with the information you just gave me, it will take you roughly 118 months (9.83 years) to pay off your credit card debt. At that point you will have paid off basically 3 times what you owe now!!!! So, some options to consider. If you are confident that you can continue making monthly payments of $1, 200 per month for the next several years, you may want to consider looking into credit counseling. These agencies work with your creditors to lower your interes rates. For example, if you cut your interest rates in half, it would only take you about 5 years to pay off your debts. However, this is assuming you never miss a payment and that you are positive you can make $1, 200 per month with no issues. Credit counseling agencies are allowed to remove you from their program is you miss even one payment. Or, you could consider debt settlement as an option. Through a settlement program, your total debt is negotiated down by the company as opposed to the interest. The goal here is to settle the debts for a reduction of what is owed to satisfy the entire amount. This would be especially helpful if you anticipate falling behind in the near future, as the accounts must be past due for the creditors to be willing to settle.
