A little advice on credit

Bill,

It sounds good that you are so willing to repay your debts. It appears from your post that credit card debts are making much trouble for you. Since you are going to receive your tax return, it will be a wise move if you put it towards your debts.

Most of the time people have to pay more for interest. So if we pay the high interest credit card first, it's definitely going to save some money for you. However, you should do some more calculations before deciding your payment strategy. Some of the forum members have found snowballing as a good repayment option.

http://forums.debtcc.com/forums/snowballing.html

IMHO, avail the free counseling offered by this site. The consultant will first analyze all your financial obligations and then work out best payment plan for you.

Tax refunds must be used very wisely. Since, it is your hard earned money that you lent to the IRS, interest free, you must put it to good use when you are receiving it back. Paying off the high interest debts is the best way to use this money.

Once the whole amount of tax refund has been used, you have other options also to pay the remaining debt. Let us know if you want to discuss further on it.

as far as consolidation. i have a problem i was going to enter a program but my car loan is at the same bank as my CC, so if i were to do this they would charge it towards my car and repo my car. any suggestions

Consolidation program does not require any property from your side to be pledged in it. It will only include your credit card accounts. The car loan will be kept separate because secured debts are not taken in the program. Have a talk with the consultant regarding this program. This site offers free counseling. All you need is to fill up the free registration form and the consultant will place you a call.

i know that the car loan doesnt get put into the program. im saying that my CC is through the same bank as my car loan, so if i act bad on the CC then they will repo my car. that is what the program told me.

Guest - You do not want to dink around with form letters and risk you car getting repoed. Thats one of the worst things that can happen financially. They auction off your car for far below its value and you are still responsible for the balance as well as any storage fees.

I would make your car loan a priority.

Guest,

See by consolidating your credit card, you are not running away from your responsibility. You are paying the balance through a convenient repayment plan. You will be paying regular installments through consolidation program; you are not going to default on your credit card account, right? Hence there is no reason for the bank to repossess your car if you place your cards in consolidation program.

Moreover, it depends on the efficiency of the consolidation company you are working with. They should negotiate with your bank and make an agreement, so that your car is not treated as the complementary of your credit card account.