Home

10,000$ in cc debt. Options?
1, 2  Next
 
Post new topic   Reply to topic    Forum -> Household Management -> Finances


View latest: 24h 48h 72h


amother




OP
 

Post Sat, Oct 31 2020, 8:24 pm
Hi all,

We have about 10,000 in CC debt from.about 4 years ago. We couldn't afford basic necessities and needed it. Anyway, it was originally 12 and we got it down to 10. Its been years later and we still can't manage it. We are paying the minimum plus a high interest rate and almost nothing is being applied to the debt.
If you had the same scenario, what are my options? I don't want to kill my credit score loose a house for 10,000.
I do own a home if that matters.
Is there a way to lower monthly interest? I called visa but they turned me away.

Thanks!
Back to top

miami85




 
 
 
 

Post Sat, Oct 31 2020, 8:49 pm
We were in a similar situation and we got one of these debt consolidation loans and it helped by taking out the debt from the credit cards and we ended up paying about the same amount per month but it was a fixed number rather than just paying down interest. Taking it away from our credit cards and hence our credit utilization went way down allowed our credit scores to go up which improved our ability to get better loans/credit.

I would recommend going with a company that allows you to refinance your loan before the term is up.
Back to top

amother




Wheat
 

Post Sat, Oct 31 2020, 8:59 pm
amother [ OP ] wrote:
Hi all,

We have about 10,000 in CC debt from.about 4 years ago. We couldn't afford basic necessities and needed it. Anyway, it was originally 12 and we got it down to 10. Its been years later and we still can't manage it. We are paying the minimum plus a high interest rate and almost nothing is being applied to the debt.
If you had the same scenario, what are my options? I don't want to kill my credit score loose a house for 10,000.
I do own a home if that matters.
Is there a way to lower monthly interest? I called visa but they turned me away.

Thanks!

We were in the same situation, you can try to take out a loan on the house. If you put down a 20 percent down payment. Talk to your mortgage company. Good luck!
Back to top

amother




Wheat
 

Post Sat, Oct 31 2020, 9:00 pm
Also we can pay back the loan at any time we used to do minimum payments but are now doing more.
Back to top

amother




Lime
 

Post Sat, Oct 31 2020, 9:17 pm
If you are eligible to refinance take money out on the refi and use that to pay the CC.
Back to top

mra01385




 
 
 
 

Post Sat, Oct 31 2020, 9:42 pm
Try to see if you can get a personal bank loan for a 3-4 yr term with much lower interest rate and pay the cc debt that way.
Back to top

amother




OP
 

Post Sat, Oct 31 2020, 9:46 pm
Thanks all.
Is there such a thing as a company that can simply lower the interest rate way down? Without it touching our credit score or such.

I have an extra 5,000 which landed in our lap through a long story just recently. I was hoping to use it to pay towards tuition. Would you recommend paying of cc first?
Back to top

amother




Ecru
 

Post Sat, Oct 31 2020, 9:49 pm
Refinancing costs money. Unless there is some other reason to refinance you could be paying almost as much as you owe on your credit cards in refinancing charges.

Also transferring credit card debt to a mortgage is generally not a good idea because you have now put a lien on your home by converting unsecured credit card debt into a loan secured by your home.

I realize it might be difficult but are there any budget savings you can make to use that amount to pay down the credit card each month. Perhaps if you commit to a specific sum and then see how that translates into paying down the amount would be incentive.

Is there any way that you can earn an extra $100 or $200 per month? That is not an impossible sum for a side hustle. You could be an instacart shopper or deliver for grubhub for example. You would probably be able to earn $50 a week extra in a few hours.
Back to top

Ruchy




 
 
 
 

Post Sat, Oct 31 2020, 9:50 pm
We were in the same situation. People told us to take out 0% interest credit cards which only made things worse. RSK financial coaching has really helped us and b"H we are debt free now. Try emailing office@rsk.org.
Back to top

amother




Seagreen
 

Post Sat, Oct 31 2020, 9:54 pm
Ruchy wrote:
We were in the same situation. People told us to take out 0% interest credit cards which only made things worse. RSK financial coaching has really helped us and b"H we are debt free now. Try emailing office@rsk.org.

Can you elaborate on what you did?
I have the same situation. Do you think refinancing my house is the best option?
Back to top

amother




Rose
 

Post Sat, Oct 31 2020, 9:55 pm
Transfer to a lower Interest cc
We transferred to one with a 0 %
Back to top

amother




OP
 

Post Sat, Oct 31 2020, 10:00 pm
Thx so much for the replies!
We can't refinance now for various reasons. I really just want the interest lowered significantly so we can put monthly payments towards the debt, not interest.

For those who were helped by large companies to lower interest. Were there any negatives attached?

Which cc have zero interest and how can I transfer debt.
Back to top

Ruchy




 
 
 
 

Post Sat, Oct 31 2020, 10:04 pm
Refinancing and going to 0 apr cards are just a temporary band-aid solution. The way we did it at RSK was by sitting down with a financial coach who helped us go through our finances and guided us with the best way to get us out of debt asap. It was life-changing.
Back to top

happy12




 
 
 
 

Post Sat, Oct 31 2020, 10:40 pm
amother [ OP ] wrote:


I have an extra 5,000 which landed in our lap through a long story just recently. I was hoping to use it to pay towards tuition. Would you recommend paying of cc first?

Definitely use it to pay your cc bill. The sooner you pay it off the less it will cost you.
It will make paying tuition easier in the future.
Back to top

yksraya




 
 
 
 

Post Sat, Oct 31 2020, 10:45 pm
amother [ OP ] wrote:
Thanks all.
Is there such a thing as a company that can simply lower the interest rate way down? Without it touching our credit score or such.

I have an extra 5,000 which landed in our lap through a long story just recently. I was hoping to use it to pay towards tuition. Would you recommend paying of cc first?

Maybe ask them for a settlement given you have a lump sum payment for them. They might agree. Just make sure to ask them to send you a letter stating it's paid in full, as that may aid in better credit score. Good luck.
Back to top

amother




Vermilion
 

Post Sat, Oct 31 2020, 10:55 pm
yksraya wrote:
Maybe ask them for a settlement given you have a lump sum payment for them. They might agree. Just make sure to ask them to send you a letter stating it's paid in full, as that may aid in better credit score. Good luck.


if youre trying to negotiate have an expert help. if you tell them $$ just landed in your lap theyll take it but won't let go of the rest....
Back to top

amother




Green
 

Post Sat, Oct 31 2020, 11:16 pm
If u can't refinance then For sure pay down the cc with the 5000. See if u can negotiate to a lower amount if u pay it off now- like 7 or 8,000 and then pay it off with the 5000 and cash out from a 0% card. If they won't plbarigain to down then pay 5000 with the money u came into, and do the other 5000 from a 0 % apr. the 0% still charge a 1 or 2% fee for putting money on them- but then that is it for the year. We did this a couple times over the last 20 years and always paid it back before the year. A 2% fee on 5,000 is much better than the cc interest .
Back to top

mra01385




 
 
 
 

Post Sat, Oct 31 2020, 11:28 pm
Just make sure to find out if any negotiations will effect the credit scores?
Back to top

amother




Black
 

Post Sat, Oct 31 2020, 11:29 pm
yksraya wrote:
Maybe ask them for a settlement given you have a lump sum payment for them. They might agree. Just make sure to ask them to send you a letter stating it's paid in full, as that may aid in better credit score. Good luck.



CC companies won't settle because you tell them you're struggling. They will settle when you actually STOP MAKING PAYMENTS FOR A FEW MONTHS.
Back to top

amother




Mistyrose
 

Post Sat, Oct 31 2020, 11:47 pm
Ruchy wrote:
Refinancing and going to 0 apr cards are just a temporary band-aid solution. The way we did it at RSK was by sitting down with a financial coach who helped us go through our finances and guided us with the best way to get us out of debt asap. It was life-changing.


Do you mean by budgeting and cutting back on other expenses?
Back to top
1, 2  Next Recent Topics

Page 1 of 2 View latest: 24h 48h 72h


Post new topic   Reply to topic    Forum -> Household Management -> Finances

Related Topics Replies Last Post
Good career options in Israel
by amother
5 Sat, May 08 2021, 3:34 pm View last post
$1,000 to spend on a wig
by amother
2 Thu, Apr 29 2021, 10:15 am View last post
ISO 3/4 sleeve, crew neck print tops, what are good options?
by amother
1 Mon, Apr 26 2021, 11:36 pm View last post
School options for child with autism living in Toms River
by amother
2 Mon, Apr 12 2021, 10:46 pm View last post
Job options for Lba
by amother
11 Fri, Apr 09 2021, 9:27 am View last post