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Credit Card Bills
July 18, 2007
12:33 am
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2BHAPPY
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Anyone has had any experiences with credit card companies when the interest are way too high and its very hard to make the payments? My daughter is having problems paying her credit cards and we need to figure out a plan to repay them. Have you had any luck with the companies when you have asked to have the interest reduced?

Please give me all the suggestions you have. Really dont like to see my daughter depressed over this. She is very miserable. She is not a child..but she is learning some hard lessons in her late 20's.

Please help me out on this one. I am meeting with her tomorrow to discuss her finances.

Thanks

 

 

2bHappy

July 18, 2007
12:38 am
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macs
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Hi,

The only advise I can give is to NOT get involved with the companies you hear advertised that promise to help you get out of debt in three years, and to lower your debt by 40%. They are scammers! Some credit card companies will work with you if you call them.

July 18, 2007
1:36 am
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northernlights
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I think there was another thread on here recently that discussed this in length. I sort of disagree with macs just b/c my inlaws used a Debt Consolidation Company about 6 years ago. They own their own business and business was slow. After 9/11 it just got worse. They were so far in debt from putting three kids through college in 6 years. They went to this company and not only did they help them to pay down their debt, they received financial counselling so that they wouldn't end up with the same problem again. It was difficult on them for about 3 years afterwards. They would have had a hard time getting a huge loan, but now everything is fine and they are doing great financially and learned not to let Credit Cards get the best of them.

July 18, 2007
1:55 am
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2BHAPPY
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How does one negotiate with these credit card companies? I agree, I wouldnt go to those companies who promise to help you out.

Do you know which credit card companies is the best in trying to negotiate with? I think she has all the major ones.

Thanks

 

 

2bHappy

July 18, 2007
8:28 am
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taj64
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Call the credit card company and ask to reduce the interest rates. I did that on one of mine and they reduced it by another 2 percent. I saw that I was paying a lot of interest on it and not really get it down so I called the credit card company and I told them I was going to cancel the card so they negotiated with me and lowered my rate. They want your business. Also switch to a lower interest rate card might help as well but keep in mind to cancel any other cards out there and only keep one. It might take years to get the debt down but it does go down if interest rates are lower. try to get a credit card with a credit union if you can. They offer much lower rates than the standard. If you take on a new credit card that offers low interest rate like 4.5 percent to start then you can pay off the credit card debt faster. But don't keep the other one if you do that because then she might be likely to charge it up again. She has to realize that it is not a good thing to run up a credit card debt if you have a spending problem. Keep only ONE. and use the card for emergency purchases only. Eat peanutbutter and jelly sandwiches for a long time to come to save money. She needs to cut back on all those extra expenses and concentrate on getting that bill down. And learn a hard lesson. She need to combine the debts into one and cut all the other ones up. Debt consilidation is a bad idea to use these companies that specialize in it. again, keep one card only. That debt will go down eventually.

July 18, 2007
9:30 am
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CAMER
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yes, call the credit card companies....the ones i tt in the past have reduced the % fee's once i ask for this. good luck!

July 18, 2007
9:30 am
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risingfromtheashes
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call and ask for a supervisor.

OR

look for offers from companies that offer no fee, zero interest balance transfers...have her transfer her balances and then close the old accounts completely (lest she run up more debt).

then work diligently to get those balances paid down within the zero interest time frame...when that time frame is about to expire, look for similar offers and repeat again.

this is all pending her ability to get a new card AND her ability to be faithful to paying down the balances.

if the payments are huge, then call consumer credit counseling, incorporated, which is a nationwide company that charges $10 per month to help - and they do the negotiating for her, and then will take a monthly payment and distribute accordingly, so it takes the guess work out of it for her.

July 18, 2007
3:48 pm
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thedogsmom
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Hello,

I too am struggling to get out of credit card debt. I would recommend buying her the Suze Orman book that's out and on sale now Woman and Money.
It's a very basic book that helps woman learn how to get their finances in order and includes tips and recommends companies and banks to work with.

I learned the hard way....by transferring my credit balance and opening up two other cards with a 0% interest till a later date.....this can work IF you are very conscientious about paying your bills on time. IF you have just ONE late payment...they sock it too you good with a $40.00 LATE fee and they UP the 0% interest to a ridiculously high of 29 to 34% that you now owe on the whole balance you have transferred! It didn't work for me cause I missed a payment and then was right back to where I started.

The Suze Orman book also has a special deal that rewards you IF you follow a special savings plan. Buy it for her ..or have her check it out at the library. It speaks of credit card debt and tells you step by step ..how to approach getting out of debt...

good luck to you and your daughter.
TDM

July 18, 2007
6:28 pm
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sad sack
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Just a quick comment.

Don't be so quick to cancel credit cards. It may hurt your daugher's credit standing even more. Speak to a financial professional before you do anything hasty.

Good luck.

Sad

July 19, 2007
2:02 am
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2BHAPPY
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Daughter just left and she is in the whole for $74,000.00. There were about 13 different credit cards ranging from $500 to $18,000.00. I dont know whether to advise her to file for BK or what. Interest are very high and at minimum payment would not be able to pay them at all.

She is self employed and her income has drastically changed since she works in the real estate business and housing market it slow.

But if she filed for BK, it would be on her record for 10 years. I could help her out but it is so much..I wouldnt make a dent.

I dont know how to help her out.

Help me sort this out please..I hate to see my daughter like this.

 

 

2bHappy

July 19, 2007
8:26 am
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helpplease
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I went from 0 cc debt to 12,000 in one year. it FREAKED me out as i had never done something like this before. i immediately put myself in a strict spending plan. no eating out, no movies, no clothes shopping, no books, no magazines, no massages, no piano lessons, no trips, no having people over for dinner (i enjoyed this a lot and used to pay for it myself), no facials, no haircuts or expensive high lights, no flowers for out front, no long trips in my car, no sports gear. i called the lower interest credit card company and asked them what rate they would offer me to transfer the balance from my high interest credit card to them. They offered me a rate of 7 percent to transfer the balance. so now it's all on one card for a combined rate of 10 percent on half the balance and 7 percent on the other half. my debt is also now down to 7,000. i also got a roommate to help with the mortgage and have been volunteering for extra shifts at work. i have become obsessed with paying off my debt. it feels good to do something about something so scary.

July 19, 2007
3:03 pm
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truthBtold
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WOW!!!!! $74,000 in debt is alot of money for a twenty-something year old!!!!!

In part, I blame the credit card companies for marketing aggresively to this age frame....in another part, because it just doesn't seem that most folks these days don't have a clue as to how to "live within their means."

Bankruptcy may very well be an option here.

I filed a couple of years ago for the first and last time - and after the intial guilt and shame - It was the best thing that I have ever done! (Of course, I was in my 40's)

The code was written for first-timers (like myself) to allow a one time "clean slate" cause. But that may have changed now.

I would suggest that if your daughter were to go this route - to not file bankruptcy for everything. Maybe keep a few of the lowest balance (Department stores etc..) still active.......to work towards immediately rebuilding her credit.

You may want to try and find some info by googling "bankruptcy clean slate" and see what turns up.

However, since it sounds like her job might provide some hefty commisions from time to time - perhaps it might be better to wait.

There are different chapters within bankruptcy....chapter 7 and chapter 11 and I think 13 is what corportations use.

(Hell, if Delta can re-emerge - so can't she!!!!)

There is a local guy here in Atlanta, Clark Howard - maybe you could find some useful info on his site: http://www.clarkhoward.com for even more info.

Good Luck!!!!!!

July 19, 2007
5:06 pm
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Zinnie
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If they are all unsecured debts, then file Chapter 7 - that erases all debt permanently. Yes, it will remain on her record for ten years, but, in todays time - sadly it is just more accepted. She will still be able to get financing for a car or home.

If she is willing to really be on a strict budget - call, CCCS - they are the ONLY non-profit credit organization out there. They receive funding from the credit card companies as a way to make sure that people are going to pay back their debts. Additionally, although CCCS would ultimately like you to be out of debt in three years, they will understand that there is probably no way for her to reply 25K+ yearly to an unsecured debt.

CCCS they might even tell you both this and that they feel the best move is for her to file Chapter 7. Just remember, if it is all unsecured? Make it Chapter 7. If she goes 11 or 13, she is still liable for the debt, but, paid through the state trustee.

Good luck,

Z.

July 19, 2007
5:23 pm
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taj64
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ummm i gave you advice and $74,000 is astronomical in my opinion. She has serious spending problem. I would seek counseling for sure. She might be trying to fill some void here. Overspending is an addiction with some people. They just cannot quit, not without some help. I have heard about this. SHe probably is hiding things around the house, things that she does not need and buys. Wow that is credit card debt for someone who truly makes some serious money but as a real estate agent and also owning a business it is not in the best interest to run up credit cards, it is pretty risky behavior especially with the market. Good luck.

July 21, 2007
8:25 am
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2BHAPPY
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I have been giving this a lot of thought and I think perhaps the best way to handle this is by filing BK. I hate to advise this to my daughter because I have alway tried to handle my money matters very responsibly..But she owes over $70,000 and going up with interest. Between 13 different cards..that is enough to drive anyone crazy. I dont know how she got this far. She has over $3000 in payments and it is all going to interest at the moment. This system was designed to drive people to suicide or to file for BK.

 

 

2bHappy

July 21, 2007
9:32 am
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bonni
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wow, $74k is alot. When I was first married, we had a big credit card debt that we worked at for several years. It was tops around $6k. You might talk to a debt counselor about options. I'd look up a nonprofit group with good references.

What I did was

1) stop spending

2) built a cushion of $200 in my checking to help prevent bounced checks and act as emergency money, if I used it, I paid it back first.

3) make all my minimum payments.

4) Usually, pay highest interest off first. However, if I had a smaller one, I'd pay it first if the interest wasn't low. IE, if I owed $5k at 18% and $200 at 10%, I'd probably pay the $200 off sooner, so I'd have fewer payments.

It can't hurt for your daughter to call and ask for help with the interest rate. It would be better to have a record of regular payments before making the call.

With this size debt, professional credit counseling advise would be good. If you have to pay for it, find someone else. There are agencies that are in it for the right reasons that will give sound advice.

bonni

July 21, 2007
11:19 am
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