Cutting Debt: Tips From Pros

[femmeke830]

Alas, this doesn't cover one of the more pernicious types of debts: Student Loans. There is no recovering from too many student loans that you're ill equipped to pay off-- think carefully before you spring for them.

[bbcszone]

freebiejeebies.fifa-multiplaye­r.ro - free money

[aasmom]

Two words: DAVE RAMSEY! Check him out. Read and follow his book! He uses common sense to get you out of debt!

[mahammadabba]

Some real advice on getting out of credit card debt if you are in it:

Call your credit card companie(s) and tell them you are having problems. They will stop your credit card but you should be able to set up a repayment plan.

$18000/48 months is $375 a month. Take on a second job to pay this off. Not only will you come out ahead in the long run you will be helping to end this credit crunch.

Good luck to all from someone that has been there.

[4age20vbt]

Myabe you can answer this question straight forward. I called two of my credit companies and they gave me the option to close my accounts (opt my cards) My question is the following: by opting my account does this have a negative impact on my credit history? Will it show as my account being settled? To my understanding having an account as "settled" tells future creditors that I am a high risk person.

[mahammadabba]

From your question I assume you owe on the credit cards. If you 'opt' them it means the credit card company will close them out and you won't be able to charge on them.

Opting does not end the money you owe them. You still owe whatever balance is on the cards and unless you pay them off interest will keep adding onto the balance.

If they close the cards they will offer you a payment plan, if you are late or miss payments your credit will suffer. (continued)

[mahammadabba]

Sounds like your credit is in a problem state right now. Opting will tell credit card companies that you are having problems right now and that you are not a good risk. Your account won't be 'settled' until it's paid in full, principle and interest.

You should worry more now about getting your debts paid on time and paid in full. This will begin your way to a higher credit score.

If the credit card companies have to write off this as a loss it will stay on your report for 7 to 10 years.

[YiuTeub]

@mahammadabba $ 375 per month for 48 for principal.... what about the 8 - 29% interest rate ? At 18% interest it would be $528.75 per month to pay in 48 months. and at 8% which is rare it would be $439.43 per month for 48 months.

[mahammadabba]

@YiuTeub, good point, you are spending an extra $64 a month on interest payments, all the more reason to pay off the debt. I'm debt free and not paying anything to the credit card companies by paying off my balance every month and not considering them handing out 'free money'.

[mahammadabba]

After all is said and done, you will not be able to finance a house or car, your insurance will be higher and you will burdon your spouse/future spouse with your bad credit history (remember that 'freecredit' commercial about the guy who was living in the in-laws basement because of his wife's credit?)

[mahammadabba]

The magic potion is:

1. Stop paying your credit card companies. They will start charging late fees and make damaging reports to your credit score.

2. For this 'advice' you will be paying the 'credit counsling service' a monthly fee, part of it goes to them and the rest goes into a 'savings account' to pay off your debt.

3. After 4 years you have no credit left and they take the 'savings acct' and by that time the credit has been written off and they will take anything to close it out.

[fdipays]

Did they mention how using a credit counseling service will leave the same negative effect as a home foreclosure in the event that they ever want to buy a home.

The advice to follow the plan is right on the money!Just make sure that you understand the effects that it may have....

What about disclosing the Credit Industry? See why their plan is designed to keep the American consumers in debt!

Best wishes from FDIPAY on YouTube

What is your financial plan?

[tik38ind]

credit card buy now and pay forever,because you cant pay off.spend how much money you can pay back later.and you must to know how much your salary,and how much you earn interest from your checking account to pay interest for your credit card.large people they dont know how to management the credit card,just spend 30%from credit limit.dont use if you dont have job,make you mad.credit card same like coca cola sweet tasty,but you get headache later.if you can pay with cash why you like credit?

[zloben9000]

dont use your credit cards... Was that a PROFESSIONAL advice ? or what

[lobextomy]

people who get themselves into thousands of dollars of debt arent exactly geniuses, are they? common sense eludes them. You wanna stop increasing your debt? stop using credit cards, dummy ;)