What is the best way to pay down credit card debt?

For just about anything you want to get off your chest about credit cards.
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kashmac123
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Postby kashmac123 » Mon Sep 03, 2012 12:09 pm

TRUMPET-205 Thanks for your reply. I am planing on using the snowball method.

The only problem with Lending Club and Prosper is you need a high credit rating. My credit Union of 3 years turned me down for
a secured credit card because my rating was a 609. They can see that I have not missed any payments with them or anyone else.

So after two weeks of trying to secure one I went back to one of the banks I have a relationship with to secure another card with them.
The card number is already in my drop down menu. Just waiting for them to come and get my money and for them to post the card to me.

My problem was not knowing.......how to use the credit card. I do not carry cash. So if my purchase is $5 or more I pay with a credit
card. That is how my balances crept up on me. Not any wild spending just everyday needs for food and household supplies.

I have learned that if your balance is $398 and $2.00 from limit and you make a minimum payment of $25 the cc company will
deduct its fee and interest from this payment ($12) and leave the net($13) added to your available which is now $15.00

The best way to pay a credit card is to pay twice the interest and the minimum payment. In my case that would be (2x12+25=$49)
this way you have $37 posted to your balance.

I have put all my credit cards away and I have $2.00 in my wallet if that. No I don't have any cash at all.

I am waiting for the Banks to reopen so I can complete my deals and get some cash back.

I am playing it really close to the vest because I do not want to over draw any of my bank accounts.

We live and hopefully we learn. With new knowledge we can do better.

So I am back after 3 years of not so good health and a spell cast over me and I am still in debt.

Well the Lord heard my prayer and has returned me to 89% of better health. I still have some pain
at times in my back but not like it was 2 years ago. I found a drug that works for me and allows me
some freedom to feel better. When you feel better you think better and are able to do better work.

I am concentrating on the business of credit card debt. Many people are in trouble. So with all the
knowledge I gain I hope to be a benefit to other people.


DavidNY
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Postby DavidNY » Mon Sep 03, 2012 12:47 pm

Which company is charging 35.9% APR?

Rory
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Postby Rory » Mon Sep 03, 2012 12:47 pm

kashmac123 wrote:DavidNY That is a good suggestion but we are talking about my brother. Sure he tells me that he loves me but when it comes
to his money he says he is not a bank and that he is going to keep his money in his pocket.

Anyone willing to take a chance? I am willing to pay 5% to anyone that will send a cashiers check to my cc company and pay off any
of my balances.

I have not missed a payment in 7 years and I don't plan to start now.

This is the list and the balance of each card and APR.


The last card is already closed. I pay $20 every month..

Pick your number. We can work out the details.

The ball is now in your hands. Let's score some points.

I
Let's say you get the money interest free for 18 months. Where can you make 5% on that money before you return it to the bank?


Okay does anybody else get a really bad feeling from this??

this may be a credit card forum where we willy nilly share some of our basic credit information and how reliable we are to lenders and such, but what you are asking is to trust you based off of nothing but your "post" with no formal contract or agreement, very bad business

If we were to be this loose with our money we would all end up in a situation just like you are in right now, assess your options and make due as best you can by yourself, i wouldnt ask for handouts on the internet of all places.

the ball has always been in YOUR court and it will stay there because none of us our responsible for your past purchases and mistakes, good luck with your payments and keep up the optimism
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Amex BCE - 12000 limit
Amex BCP - 4200 limit
FIA Rewards Amex- 3500 limit
Chase Freedom - 2000 limit
Chase Slate - 2000 Limit
BoA Cash Rewards Privileges- 3000 limit
Barclaycard Rewards MC - 3000 limit
Discover IT- 3500 limit
Marriott PR- 5000 limit
21 years old with alot of life to spend ;)
Its not about the ending, its about the journey,
just as long as the ending is just as good :cool:

trumpet-205
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Postby trumpet-205 » Mon Sep 03, 2012 1:34 pm

DavidNY wrote:Which company is charging 35.9% APR?


My guess is First Premier, Credit One, etc.
In My Wallet:
Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)

kashmac123
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Postby kashmac123 » Tue Sep 04, 2012 3:39 pm

Rory, Thanks for your reply.

In my post I said this: "Pick your number. We can work out the details." That means there would be agreements and contracts.

Some people are actually making bank with peer to peer loans. AS I said most of the companies set up to do this are only
looking at a credit score of 645 or 660 before they will consider you.

There has to be a better way. I will find that way and honest people will get the help they need.

I am not asking anyone to forgive me or do anything for free. I will save a few dollars in interest and
my credit score will began to rise.

The people that loan me the money will be repaid long before their 0% balance transfer expires.

I have a zero loss policy. That means anyone that does business with me will not lose and
has a chance to build a lasting relationship that will be of benefit to them.

Once I was in a meeting with several men when the insurance man said " 100 men starting
out in the work force at age 20 that by the time they reach the age of 65 that 95% of them
would be dead or dead-broke"

Well I am at that age and I am broke. Being broke is just a condition a passing stage
in life. It does not have to be permanent. If a man can think he can grow rich.

I started this round 7 years ago to help me control my finances and to see if I could
for once stay current. In the back of my mind I was also collecting credit cards.

I once read an article which stated that a man had collected over 100 bank cards.
But it did not say that he used them. Well I liked that idea and started my own
collection of credit cards. Many of you on this forum are doing very well.

When I woke up this past month and I remembered that I was planning to pay off
my credit cards in 2009.

Well something happened and I forgot about this idea and plans. I do know
that around this time in 2010 I started to have pain in my back.

My doctors could not find the cause or treat the pain successfully.

About 2 months ago I found a drug that relieves the pain for a while.
I started to feel better. When you feel better you can do better work.

After a few weeks of trying to secure the right kind of credit card to
carry out my plans was not successful until I spoke to the right person
at a major bank. So I am giving myself a timeline to carry this out.

There is more to this story but I will save it for another post.

Thanks for reading.

Let's get together and work things out.

kashmac123
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Postby kashmac123 » Tue Sep 04, 2012 6:30 pm

trumpet-205 wrote:My guess is First Premier, Credit One, etc.



Trumpet-205 and DavidNY thanks for your reply. Trumpet-205 the answer is no it is not one of them.

One of the 2 has APR disclosure agreements that range from 0% to 79,9%

The 35.9% card is a replacement of a replacement of my original card I opened in 2005.

Some of my original cards have been replaced by new banks taking them over.

One of the 2005 to 2007 cards was replaced by another only to have that one to close also.
Two more payments and this one is paid in full.

In 2010
I had my landlord to move my rent payment day to the middle of the month so that I would have
full use of my money for at least 2 weeks before it starts to go other places.

I got a new card in 2010 because it did not charge interest on purchases.
For the 1st time I paid the balance off in full. Waking up uh!

Then I took a cash advance and used the balance to pay the electric bill.
This month I only paid 4 times the minimum payment.

Then I paid $600 for a new secured credit card. They came this morning and took
the money. So hopefully this new card will arrive before the middle of the month.

Because I need to make a few moves before the 24th.

I plan to pay the first card off every other month so it will line up with the electric bill.

Rory
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Postby Rory » Tue Sep 04, 2012 9:35 pm

sorry to sound like a cynical A-hole, i am just very cautious and a few red flags went up. I commend your efforts to pay back your debt and collecting something that is tantamount to money is nothing strange in today's society. Health problems are both unpredictable, preventable, and costly as hell. Sucks we cant all be canadian, but alas i dont like racist money. Either way i understand that you are looking for honest kind hearted people but it isnt that easy in current times to post such things and not be considered a con man or something similar. Idk you or your circumstances all that well but it is good to know you are learning. Try crowd-funding your way out of it or getting a second job, other than that i can't really suggest any definitive answer.

good luck and all the best towards your health
Amex Zync - NPSL (Cleared up to 25k)

Amex BCE - 12000 limit

Amex BCP - 4200 limit

FIA Rewards Amex- 3500 limit

Chase Freedom - 2000 limit

Chase Slate - 2000 Limit

BoA Cash Rewards Privileges- 3000 limit

Barclaycard Rewards MC - 3000 limit

Discover IT- 3500 limit

Marriott PR- 5000 limit

21 years old with alot of life to spend ;)

Its not about the ending, its about the journey,

just as long as the ending is just as good :cool:

kashmac123
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Postby kashmac123 » Fri Oct 05, 2012 3:51 pm

UPDATE:

I got started today with my debt payoff plan. I paid my lowest balance first and will proceed to the next lowest balance next in that order.

Most of us want to payoff our credit cards but we don't have enough money to get started.

Well I say use what you have and find a way to make it work.

It is the getting started part that is the hardest but one must stick to the plan and ..just do it.

It's called working capitol having enough money to do the things that you want or may need to do.

Although I had planned for this debt snowball to take shape in October I tried to start it in September
but had to many people to send money to so I cancelled the payoff and paid a minimum payment
although none was due.

This month took on a different shape because of new people entering my life and things we must do
to be compatible.

Well things are looking better and taking shape.

Rory, thanks for your last post.

Daniel
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Postby Daniel » Fri Oct 05, 2012 5:28 pm

trumpet-205 wrote:I can offer you two methods of paying down CC.

* Snowball method.
Pay off the card with the least balance first, then the second least, and so on. That way you can allocate more money on other cards since you free up minimum payment and minimum finance charge. Paying off your high interest card first does not necessarily save you money.

* Social lending.
Go to website like Lending Club or Prosper and request a loan there. If approved there will be various people on the internet to fund the loan. Social lending is like a personal loan where you pay fixed amount of money back each month. Unlike personal loan however, social lending usually has lower APR, and there is no penalty for paying it back faster. Use the money you get from the loan to pay off all your CC debts.


I would like to second the idea of a social lending type option(I invest using one of the major sites), but would like to add a couple comments to this. In general one needs a FICO type score above 660(US average is around 645-655) to get some of the better rates; far more importantly though is to ensure that one doesn't re-load the balances on the credit cards after using the personal loans to pay them off.

I would like to disagree though that paying off the cards with the highest interest and fee rates does not save the most money. I will to agree that paying off the lowest balance cards will free up cashflow the quickest, because minimum payments get freed up. Technically however, if I only have an extra 100 above the minimum payments available each month, it is in my best interest to pay off the cards accruing the most in interest and fees each month rather than my lowest balances. The difference can be a few dollars a month on a hundred dollars vs paying the lowest balance cards first.

kcarter609
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Postby kcarter609 » Sun Feb 03, 2013 5:01 pm

What ever happened? Did you knock out the debt?

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