min payments vs debt program?

Date: Wed, 08/30/2006 - 21:45

Submitted by anonymous
on Wed, 08/30/2006 - 21:45

Posts: 202330 Credits: [Donate]

Total Replies: 2

I got a credit card in Feb. 2006, interest rate was 0% for 6mo, then 9.9%. Now I looked online and noticed there was a $42.00 payment charge. When I called the company they said after they add on my interest rate then I am charged the same rate. Which didn't make sense to me. And I asked them what my interest rate is? He said 23%. I have never missed a payment or anything. My credit limit is $2000.00, my husband maxed it out buying the XBOX 360! I been making payments of $150.00 a mo for the 1st 3mo, then making payments of $300.00 a mo. In June it was paid down to $900.00. So I called them again today cuz I got my statement saying my interest rate is now 25% they said thats cuz I have international rate fees alot on the card, so my interest rate went up. I am here in Japan at a military base. My Vodaphone charges goes to this credit card. So I am trying to have my vodaphone charge my debit card still. For this rip off card is it best for me to keep paying $300.00 a month? I cut the credit card up already. I checked out some debt places but most have fees over $25.00 and you need 2 credit card debts. Should I put it in a debt program? I start college in Sept. That $300.00 I could use for daycare. If I keep paying $300.00 for payments the kids will be staying at home with me while I study and take classes online.

Erin, you don't want this debt to multiple further. Take some pr

Erin, you don't want this debt to multiple further. Take some professional advice of a debt counselor and insist him to negotiate with the credit company. He will try to lower the interest rates and waive off some fees added on the principal amount. Take the help of a counselor who can assist you in framing your monthly payments according to your present situation.

lrhall41

Submitted by Christina on Thu, 08/31/2006 - 14:58

( Posts: 438 | Credits: )

Erin, It depends on your credit and how much you care about y

Erin,

It depends on your credit and how much you care about your credit score in the short term. If you stop paying your credit card bill and let it go into collections then you can possibly negotiate and pay off the debt without getting raped for the outrageous interest rates you are being charged as well as all of the fees. If you do it correctly you can settle the debt for as little as 25% of what you currently owe.

I would make sure you keep track of how much money you have paid them already compared to how much you have spent on the card. You can use that information in your negotiation agreements with the credit card company. Your small amount of debt disqualifies you for many programs out there, settlement, consolidation or otherwise. For just one card you can get out of debt pretty quickly and easily. Especially with such a small amount of debt. I would personally stop paying the bill and save up around 30%-40% of the debt and then call the company and settle with them. You will still have paid more than you borrowed from them and this way you do not have to keep getting hit by the excessive interest rates.

Thanks,

Fred

-----
Link deleted as per forum rules - Mike

lrhall41

Submitted by fred on Thu, 08/31/2006 - 19:04

( Posts: 6 | Credits: )