Should I consolidate my debt?

Date: Wed, 02/23/2011 - 00:36

Submitted by anonymous
on Wed, 02/23/2011 - 00:36

Posts: 202330 Credits: [Donate]

Total Replies: 3

I have a credit card with 2,200 balance. The minimum monthly payment is 56.00 and the interest charged every month is 46.00. I am a college student with a low paying and low hour job. Im not going to lie, my parents use to pay this credit card for me until last year when they started losing alot of money and their real estate went downhill. Since they have been suffering with their own problems they turned over this bill to me along with my school bills. I've been researching debt consolidation and settlements and it looks like 2,000 is not as bad as I thought.

However, what I HATE the most is that I can only afford to pay 100 max a month. meaning only about 50.00 goes toward the actually debt owed. This means im losing thousands of money in the long run. I know I cant do any settlements because I am not late on the payments or anything. The card is closed however. I closed it before I read how it would negatively affect my credit rating.

I one other card with a low credit line at 300(which is paid off) so Im not sure if a balance transfer would be smart or not.

What would be the best way for me to get this paid off without losing so much money on the interest charged?

Hi! Welcome to the forums! Yes, you can go for balance transfer

Hi!
Welcome to the forums!
Yes, you can go for balance transfer method. You can transfer all your outstanding balances to a card with 0% or low interest rate by paying a processing fee. Thereby you only have to make one easy monthly payment each month. Try to pay off the new balance within the introductory period as the credit card companies often increase the interest rates once the promotional offer is over.

lrhall41

Submitted by Good Nelly on Wed, 02/23/2011 - 01:20

( Posts: 2846 | Credits: )

Thanks for the reply. A couple questions i have. Will I have to

Thanks for the reply. A couple questions i have. Will I have to apply for a new card made for balance transfers? My other card only has a limit of 300. My understanding is that I would only be able to transfer 300 to that card. That would not be enough. I dont want to apply for a new credit card for a balance transfer because I am pretty sure I will not be approved.

lrhall41

Submitted by on Wed, 02/23/2011 - 01:47

( Posts: | Credits: )

Yes, you would have to apply for another credit card in order to

Yes, you would have to apply for another credit card in order to consolidate. If they turn you down, that would be noted on your credit report. Before applying, I would call your credit card company and see if they can lower your interest rate. Tell them your circumstances. If they refuse, I would suggest you continue paying what you can and look for additional work.

I doubt that another credit card company will approve you with your limited salary.

lrhall41

Submitted by aubrey on Wed, 02/23/2011 - 08:08

( Posts: 1203 | Credits: )