Looking for Advice - CC Debt ($50k)

Hi GetMeOutofDebt,

Welcome to the Community!

See http://www.debtconsolidationcare.com/steps.html
And http://www.debtconsolidationcare.com/debt-management.html

Go for debt management. Settlement is the last thing you want to do, unless your credit is already trashed, because its reaction on your credit is brutal.

But even with debt management, I don't see how that could help you much with such nice interest rates. One little signal to your creditors, though, and they will swiftly spike that up to 20 or 30%.

While your credit is wonderful, the first thing you should try and do is apply for a Debt Consolidation loan with a low interest. That would be the best solution.

You could also sign up on this site and a Financial coach from an affiliated company will contact you and discuss your credit situation in detail.

chrys

i agree with chrys, if you are currently timely on your accounts consolidation is the right answer for you. settlement is next in line if you cant make those payments or are starting to become late. Although it is a better option than bankruptcy. Im a big fan of settlement i needed it myself. But it is for more serious debt trouble and it will trash your credit score for atleast a year or so. But if your already late your score is trashed anyhow so it dont really matter. But your interest rates are much better than anyone elses right now so unless you can get a personal loan with lower interest rates you may be better to suffer it out. or go through debt management consolidation were they illiminate the interest and fees but then you will be paying on this for a very long time.

Good luck to you what ever you decide!

Thanks for your advice! Would you suggest i continue to try to get the lowest APR possible? (meaning going after no APR for a year type offers and such) Or just stick it out and try to get rid of what i have?
I would be interested in talking to a Financial coach i think.. i am a bit leary of signing up for the site though. I dont want to start being bombarded with offers and companies trying to take advantage. Will that happen or will it be just a few?
Thanks again for your advice... I just feel like im dangerously close to that cliff where everything could explode (interest rates and so forth), and i want to try to go back in the right direction before its too late!

I agree that debt consolidation is your best bet. I would also go for a loan, not some credit card that has a promotional interest rate for one year. Unless you realistically think you can pay it off it a year, you will just have to keep swapping around the debt to different accounts. If I could I would combine all of my debt into one neat and tidy loan, with a very low interest rate and the longest repayment term possible. Most loans won't penalize you if you pay it off early, but if you have a tight month you will still be able to afford the minimum payment. Oh and for heaven's sake don't take out a secured loan! UNsecured only. Good luck.

Balance transfer may be an answer. Low APR credit cards can consolidate your debts and thus decrease your monthly payment. But the low rates are available for a short period of time (anywhere between 6 months and 15 months). After the end of this introductory period the low or zero APR jumps back to the usual rate, sometimes as high as 29%. So, beware. Read the fine prints before opting for such card.

I would advise a different debt remedy. No, you don't have to keep swapping debt around, that's a poor plan in the long run, as we all know from experience.

http://www.debtconsolidationcare.com/success-stories/good-ccdebt-deal.html#458855

The zero APR card would only be worth it if you 1) didn't charge on it, only used it for balance transfers, i.e. consolidation. and 2) you can pay it all off with the zero APR period.

If that is possible, you are fortunate. But if you have good credit, it is best to keep that as unsullied as possible.

Now's the time to get out from under the banks and live a debt free life.

chrys

That was me, dangit. I hate logins that time-out!!

chrys

that has happened to me so many times chrys! It makes me so mad!

Anyway i would have to agree with the NO SECURE LOANS!!! Alot of people take out home equity loans to pay off debt(me included once and still paying). Now that im a little older and wiser this is pretty stupid and i will tell you why

1 you are taking credit cards (no risk of loosing anything) and wrapping that debt into your home.

2. it is so easy that people do it over and over and the next thing you know you are paying 100,000 on a 50,000 home and now your home is at risk. What happens when the bank wont give you anymore money and now you got all those old debts plus the new ones?

scince it was so easy to consolidate this way you had no chance to learn. you will say you wont do it again but you will. This is another reason why so many are loosing thier homes right now.

before your home is protected. by consolidating you are putting it at risk.