Managing Credit Card Debt
- llldk2
- Kirk
- llldk2
- Kirk
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» llldk2 - What is the best way to get rid of Credit Card Debt
Hello, I am new to the discussion group. We have amassed 9000.00 in Credit Card Debt. For various reasons, mostly medical. I was trying to save our credit rating by paying bills with the credit card. Dumb I know.We have quite a lot of equity in our home. My husband makes about 66,000 per year. He is a professional.
I want to get rid of this final debt, so we can go a head and look to saving and ivesting for college(3kids).
Any suggestions for us?
llldk2
-- posted by llldk2
» Kirk - Re: What is the best way to get rid of Credit Card Debt
.In response to What is the best way to get rid of Credit Card Debt posted by llldk2:
Make a budget and find where you spend money. Make a list of what you MUST spend on then look at the other areas as luxury that you temporarily cut back.
Cut out all expenses like lunches at the cafeteria and replace it with sandwiches from home. Cut ALL trips to Starbucks or Pete’s except for once a week as a treat and make your own coffee. Shop at Wal-Mart, not Nordstrom’s for clothes. How many new toys do kids really need? How often do you feed the family from McDonalds rather than grill some Turkey burgers on whole wheat buns with a bowl of rice and a green salad to replace the fries?
Make a vow to not buy ANY fancy stuff like new TVs, meals out, shoes you don't need, etc. until the debt is paid off.
-- posted by Kirk
» llldk2 - Re: Re: What is the best way to get rid of Credit Card Debt
In response to Re: What is the best way to get rid of Credit Card Debt posted by Kirk:Ok, but where do we put or how do we deal with the existing debt now? We are paying way to much in financing charges. What are our options?
llldk2
-- posted by llldk2
» Kirk - Re: Re: Re: What is the best way to get rid of Credit Card Debt
.In response to Re: Re: What is the best way to get rid of Credit Card Debt posted by llldk2:
Find credit cards that allow balance transfers and give you grace periods with no interest. Keep looking for cards to switch to as you pay down your debt. I ONLY recommend home equity loan if you are sure you can pay off the debt and not simply add it to your long term debt. Maybe get a 3 or 5 year loan from the credit union where you work to refinance the whole thing... but only if you can keep the expenses for the loan low. If you have home equity and a good credit history, you should be able to get reasonable terms for a $9,000 loan. You could always sell an expensive car, use the cash to pay off the credit cards, then buy a cheaper but certified used car with a credit union loan (I hate the silly dealer loans that don't use simple interest.)
What you DON'T want to do is turn short term spending into long term debt. But, if the medical condition was an emergency and not about to repeat, then perhaps a home equity loan from a trusted source like a credit union is a good way to cap expenses. You just have to make sure to pay it off ASAP.
-- posted by Kirk
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