Paying down debt
Posted By: Overwhelmed. on 2008-07-02
In Reply to:
It is getting harder to make ends meet because of all the straws in our bank account. I have 17k in CC dept alone. It is with 4 different CC companies. One CC has $200, #2 has about 4K, #3 has about 2K, #4 has 10k. The 10K one has a 15 % APR, the others I believe range from 24% to 29% APR. My biggest monthly payment is my house and I owe only $4700 on it and it has 6.3% APR. I sold some things and am getting $5K and that will be enough to pay off my house. I would love to finally, officialy own this house and get rid of that $350 monthly pmt, but I wonder if I should not pay down on the CC because of the high interest rates. Any opinions. TIA.
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Paying Down Debt
I feel you, believe me. First, Bravo to you for facing this. That's the hardest part. I think if you are so close to paying off your house, you wouldn't want to take out yet another loan against it. Additionally, the interest rates aren't that great. What is the total of payments you are making on your credit cards? If you can slap that 5000.00 on your debt first on all of the higher interest ones perhaps paying some of them off. That will free up extra money to put on the rest of your credit cards. Then once the credit cards are paid off, you can then work on the mortgage (I WISH I had your mortgage..). Also we work in an industry where it is easy to pick up extra work---have you thought of that just to get extra money to pay off the debt? That's what I'm trying to do. Things are just so bad right now. Good luck, hope this helps...
Oops, should have been paying off a debt
/
Might do that one day, but have some debt to get rid of first - sm
So putting out $6500 for a TT will have to wait; in a year I may be able to think about it, then save up the $$$ for it. I have done some research into this and know I first have to lose the weight and be stable at my goal weight for a while before I can have that done if I want to do this right. Guess I will just have to wait and see just how bad it looks after I shed the 70+ pounds. Feeling good right now, just went outside did some yardwork that I usually never have time to do (really didn't now either but work can wait), felt good to be active for a change, though I must now sit on my big butt and work for the next 4-6 hour! My thing is that I have to get more physically active, sit way too much!
Out of debt
Congratulations!!! Isn't it a wonderful feeling?
debt
I agree with transferring to 0% when the offers come. I have been doing that for years. Now, I just got an offer for 6.99% for the life of balance up to 12,000 dollars. Going to take that offer, (we are going to remodel our main but small bathroom) and pay off 2 1/2 cc; then what is left over, oh, and going to give my hubby 1000 to get out bike out of shop, so, what ever is left over, which should be 6 to 7000, will redo bathroom, payments won't be bad, like 190 a month and don't use your cards for a good while, just steadily pay. Hope this helps, and life is too short to stress over bills. Keep them in mind but at the same time, think of what you have. 
I am totally out of debt -
house, cars, motorcyles, credit cards. Everything!
It feels great!
credit debt
Wow thanks for all the good tips.
As this got off the subject and onto other things, I just wanted to say I have heard Al-Anon is excellent for people dealing with alcoholism in a spouse or other loved one. It might be a great place for support for you and your kids. Just a thought.
Well, the only debt we have is our house...
so I would put it towards the principal on our mortgage.
Did you go into debt over the holidays?
C'mon, fess up!
Did you use credit to buy things for the holidays, or did you pay in cash?
I'm happy to report that for the 13th year, we paid in cash.
credit card debt
Not sure what will happen, but I do wish you luck. Credit card debt is an unsecured type of debt. I don't know what more they can do to you other than a judgement. Not sure you can put that under a bankruptcy either once the judgement has been placed. I know a lawyer that handles a lot of bankruptcies -- did some work for him. He always asked his clients if late payments had gone to judgements. If they had not gone that far he was pleased about it. I guess it made things easier legally. Not really sure.
Completely out of debt today!
I have paid all of my big bills off and now only have the monthly ones. Need to pop a cork!
debt consolidation/relief
I'm seriously considering going with one of those debt relief companies to get myself out from under a mound of credit card debt. I feel like I'm drowning. Has anybody had any experience with these companies, good or bad?
Strive to become debt free...
yes, that means living on a budget, telling the kids (and yourself and your spouse) no to impulse buying and splurges. You really can live below your wage if you WANT to and it is better to do it before you HAVE to due to job loss, etc. We are debt free but our home, no car payments, all credit cards paid off, only have the utilities and food each month. It feels great not to write checks to anyone. My DH just finished his obligation of 700 a month child support (Yay!!) which means more towards the mortgage to pay it off sooner. We are content with what we have...too many Americans want it all and want it now, no matter what the price, just charge it or take out a loan for it...crazy!
Do your homework on debt collection (sm)
laws also - you just may have yourself a $1000 piece of paper in your hand.
Have you requested validation of this debt? If not, I would do that right away. Send it certified mail, return receipt requested. Depending on the age of the debt, I would be very careful about sending the canned "do not contact me letter." If the debt is not that old, that can sometimes trigger them to sue. I bet if you send the "please provide me with full validation (not verification that you have my name, address and soc. sec#) of this alleged debt. Short and sweet.
Before considering the CCCS or debt relief (sm)
places, first call the companies. If you haven't been charged off yet, most will work with you and have hardship programs. The accounts will likely be closed, but after 3-4 ontime payments they will "re-age" to show as current, will lower the interest rate so payments are lower and you will pay off over a 4-5 year period (in most cases, you can't use the cards as acct will be closed to further charges in exchange for drastic reduction in interest rate). Going with CCCS or similar, has the same effect as a BK, even worse, on your credit rating. The accounts will report as "closed, paying under debt management plan." While bankruptcy is an option I suppose, if you're a homeowner or have any assets, you'd have to file Chapt. 13 which will allow for some payback. I'd call the companies first and lay out your situation and see what they suggest. The credit industry is in a mess right now so they are willing to work with you if you're upfront and showing good faith.
Anyone ever use a debt settlement company - sm
like DebtAmerica or something like that, one that eliminates 30% or more of your balance owed, consolidates it and gets each cc to settle on an agreed amount, etc. I am thinking of going that route instead of CCCS company which is just a DMP (consolidates it but you still pay back every penny and interest). Either way you have a big black mark on your credit. I owe a substantial amount and this way I can probably be debt-free in 3-4 years instead of 8 years. I know they charge a fee, and you have to pay taxes on the settled amount but it will be a lot cheaper for me in the long run and I can afford it a lot better. So if anyone has gone this route, please give me your input and who you used and if you were happy with their service, etc. TIA! 
Why would you take vacations when you're in such debt?
The money for those planned vacations could be paid towards your credit card. If you're income in increasing soon, why not apply the increase to the bills until the debt is gone and then reward yourself with a nice vacation that you save up for?
If it is an old debt, I've been told that the place that
the court with the original document that you signed before they can get a judgment to garnish wages. Usually they can't come up with it if the account was taken out a long time ago. I would look into it a little maybe even just online. Try consumer affairs website. Good luck.
I know it's popular, but don't put unsecured debt on your home.
No way, never ever do that. It's a huge mistake, you could end up losing your home. The risk is too great.
credit card debt relief
Does anyone have any experience with those companies claiming to reduce debt by up to 70%, etc. ?? I'm drowning in debt. :(
Credit Card Debt Counseling
http://www.cccsatl.org/index.asp?_method=view&sc=43&cn=486&md=debtmanagement
Here's what you want to use... It is called Consumer Credit Counseling Services. They are legit. Now back when hubs and I did it about 15 years ago, there were no computers, per se, so we went on site to an office. I don't know what state you're in or if there is an office local to you, but it looks like you can do this online.
We did it, completed it, and it was great. However, they cut your credit cards up in front of you and put them in a huge jar (at least they did back then). Once you join, there are no more credit cards. What CCCS does is works with your creditors to reduce interest rates, payment size, etc. because they are networked. You then make one lump payment to CCCS and they disburse the money. They also take into consideration your income. I think that's what makes it all work. Also, this is what tells them how long it will take to pay off the debt. Just beware though that if you are "behind" on payments, sometimes certain creditors do not accept CCCS, so they may hassle you still and some just plain won't accept CCCS's offer.
Believe me, even though we are not late on payments, we had in the past 3 years so much personal stuff go on (sickness, death, etc.) that we have racked up some debt ourselves and may try CCCS again, as one card we have raised the rate to 33% interest because we have a high balance. We make regular payments.
All in all, it's a great plan and it does work, but you no longer have credit cards (they close the accounts), and you will have a "bad mark" but yet a good mark on your credit report for using CCCS. Check with them about that though, as I do not know the specifics. It is way better than bankruptcy...
Hope you find some relief soon! My thoughts are with you... I'm not judgemental because I've been there and done that.
Anyone ever been sued by a debt collection agency
My husband and I have an account which we feel we don't owe. We cancelled it within the amount of time we thought we had to cancel, but were later told the contract for services was not cancellable (a vacation timeshare). The original amount was only $1,000.
Since that time, the timeshare company has sold our "debt" to a third party collection agency, Apelles. They call at all hours and even on weekends. Since I have caller ID, most of the time I don't even answer. This morning, however, they called at 8:45 and woke up my kids. I was a little annoyed, to say the least, and I'm just wondering: Does anyone have any personal experience with this company. I'm thinking about sending a Cease and Desist letter, but I'm worried that that will trigger them to take me to court. Has anyone ever been sued by Apelles? I would think our amount is too small to be worth their time and that they would just try to sell it to another agency. Any thoughts?
Love him! We are debt free but the house....
on an income of around $100,000 a year. DH may be getting laid off in the coming months but we just refinanced to a great below 5% rate, all our credit cards are paid off, we have savings built up to see us through tough times and we don't really worry about what may come. Sure, our cars are a few years old but guess what, they drive just like brand new ones. We still eat out several times a week, we take a month long vacation every year and we are happy with the things we have. We buy what we want when we want, but we aren't slaves to the newest TV, cell phone, i-phone, etc.We have no one to impress and really don't care what others have. We have the peace of mind that we can go to bed every night without much worry, the phone doesn't ring nonstop from creditors and we can go to the mailbox and not cringe when the bills come in. The country is in this financial mess because of greed, plain and simple; fat cat greed, greedy consumers in this I have to have it NOW society, and most think the free ride is never going to end. Sad....
credit card debt lawsuit question
If there is anyone out there who has been sued and had a judgment placed for credit card debt....
What happens when you go to court?? I don't own a house and live week to week (part-time IC, not very supportive husband) so they can't get blood from a stone so to speak. But I was wondering if anyone has gone to court and what actually happens.
credit card debt lawsuit question
Anyway you can declare bankruptcy, chpt 7? I am going that route. :(
Do you have a lot of monies owed where bankruptcy is a real possibility?
I'm going through a similar time......talk about stress!!!!!!!
I posted back in late August about cc debt - sm
in response to someone else giving advice on what to do. I told you about how I had a ton of debt my DH knew nothing about, how I was afraid of him, etc. and that I just did not know how to tell him. I consulted a lawyer and got some insight and advise in case things went really bad when I did tell him. Well I finally bit the bullet and told him on Monday. He was off from work, kids were in school, I wrote a 4 page letter laying it all out. I went out in the LR and I asked him if he loved me and was happy in our marriage, I got yes's to both questions. Then I handed him the note (bawling at this point) and said I was going out for a little while and we would talk when I came back. He called me 10 minutes later, upset yes, but not nuts as I expected. We ended up talking for 2 hours. He was quite good about it which really surprised me, he was in shock though. Later last night after he got drunk not horribly so but enough, though he did not turn nasty. I had asked him not to drink but he ignored that, so as a result he broke down said a few things which I probably deserved, though he does not believe I was scared of him....denied ever threatening to kill me, said if he did he was kidding and it was his sick sense of humor. I told him I take all death threats seriously. But comes down to he does not want to divorce over it, for which I am happy and grateful, and I think this will ultimately help us. We are taking a 401K loan for the debt on his cards, and I will go to a credit consolidator for the debt on my cards......any recommendations on that front? My credit is in the dump so this is not going to make it much worse. In five years we will be free and clear, paid off debt and house at that point. I have a huge breach of trust to heal and don't know how to go about it, that is what is hurting him the most and the fact I waited so long to tell him, couldn't understand why I felt I could not come to him when it all started. So he learned what a conniving wife he has and I learned that I had what I wanted all along, just didn't know it. We still have a lot to work out, and I am in for 5 or more years of snide backbiting remarks at times I am sure, but I think there is hope for us actually.
I used Debt Free Today. Pretty good
company. Never had any troubles with them. Just sent them a check once a month and they distributed among my creditors on the agreed amount. I think we paid off in 4 years. Was really nice!
Yeah, stay out of that family debt deal, if ya can. :) nm
nm
She's paying for it
You can be sure she is paying for the extra attention. Also, the hospital likely insisted that all that security be provided, not because they are necessarly worried about Britney but about people trying to get near her. The last thing they want is for her to get harmed while she's in their institution.
Usually if there is a VIP patient, they don't keep the chart all in one place - they parse it out in 3 or more different locations under lock and key.
Britney has always gotten that kind of treatment - when she was in Mousekeeters, everyone had to leave the gym where she worked out when she came for her exercise. Britney is a little snot, always has been even as a young teenager - turns on the sweetness for the cameras. Millions of people have bought her act.
However, I do feel for her in her present situation and hope she can turn her life around now.
Pay off highest interest rate debt first, then the next, and onto the next. The house can wait. Do
dd
Me again, tell you what I did about paying a bill for a dog
like I said above, huge animal lover. I have 3 furkids but a friend of mine whose son is a druggie, was not seeing about his dog. The dog needed an operation for a growth on his foot. I paid over $1000.00 for that and now I buy my newly adopted doggie its medicine each month. I never give my friend money because want the money to go for the doggie, not drugs for her kid but you can believe I am seeing the doggie is comfy!
Okay, I don't mind paying
to make sure everything is in order! Thanks for all the advice!
...paying for it himself out of his PT job earnings. nm
s
paying for college
I have two sons in college right now ...one out-of-state, one in a private university. They both end up getting paid to go to school because they have so many scholorships. Did the high school counselor help me find any....NO. We are in a small town and I got no help from the school or town. Neither one of my sons played any sports...but I will tell you what I found out...what is more important is that your child is involved in school and the community. They don't care if they have ever worked a day in their life...they want to know what they have done in school grade wise, and community wise. Even just ringing the bells for the Salvation Army at Chrismtas time will earn you a scholorship. I filled out over 56 scholorships for both my sons to go to school for free...you just have to learn as you go how to word answers on the scholorships. We are not poor but we are not rich...but we made to much money to get any FAFSA help.
paying off bills
In our case, we refinanced through someone in our church who had a refinance company. It included all our credit cards and no, we did not have to cut them up. We still have them and DO NOT EVER USE THEM. It also included paying off our cars. The reason we had so much debt is because I wasn't able to get enough work at that time, now it is great and I can only say we pray and God has blessed us above measure, more than we deserve.
paying off bills
BTW we also pay an extra $100 each month on our mortgage. Years ago someone told us to do that and were never able to until now. Yes, I work hard, but we are doing great and even eat out once or twice a wk and sometimes more. This friend in our church also agreed paying the extra $100 a month. I have heard other fincance people on the Christian radio station saying the same thing, so it does make sense. You pay the extra amount on the principal only.
paying bills
x
Same here paying bills - NM
NM
I am not against paying for your child's
but I have no intention of doing that for my own children. There are so many kids out there who have everything handed to them. I believe it will teach my children the value of a dollar and the value of their education if they pay for it themselves or with scholarships and hard work. I do encourage them to keep their grades up and will encourage them to apply for scholarships, grants, etc. I think either parent should have to foot the bill for college. If they want to, great; if not, I don't believe the court system should get involved.
Wow if you & hubs are paying that much
in taxes and didn't qualify for stimulus check (because you make too much?), ya'll must be rakin' it in!! Don't think you deserve much sympathy either, right? I know you we're asking for it, but seems a little harsh to kick someone when they're down...
Forgot to add - what about them paying
for their part of the cell phone bill as well as insurance on their vehicle?
You are not paying for a thing that does not benefit you, obviously.
x
Remember you are paying him big bucks
My nephew is a mortgage broker and they make good money -- put in a lot of time but that 1 to 3% loan initiation fee can be quite steep. It is not like they are doing a favor for you so speak up. Go above his head ask to talk with a supervisor, anything. Be nice about it but remember you are paying him a lot of money and so he is working for you and so speak up. You don't have to be nasty but tell him your concerns and ask that you speak to his supervisor. Good luck.
Curious as to who is paying for the wedding?
x
You are kidding about paying $2 more an hour??
I find most Americans, regardless of their race, creed, religion, etc., etc. wanting to work. I have never had to worry if I hire the Mexicans here in town to work, show them what and your job is done. I have a lady who cleans (black) and I usually have to make a list and even then she wants to sit down most of the time. Have used all but found get my work done with south of the border folks.
I'm paying for all those wives and kids...
They only claim one wife as a legal wife, so the others they marry are married in the church but not on paper, so they think they are getting by with polygamy. So what happens to all those wives with children? They go to the welfare office, since they are single moms ( no marriage certificate), they are eligible for Medicaid, my taxes to pay for their children, food stamps, on and on. That is fraud and they should be ashamed of themselves, since they know exactly what they are doing... where is their religion in all this? This is scheming.....they call it "bleeding the beast", meaning the government. Of course, they do not care that it is the taxpayer's dollar, because they consider themselves better than the "outside world", since they believe they are the chosen people anyway.
insurance not paying for meds
Insurance said I had to be on Medicare before they would pay for Celebrex even with rheumatologist asking for exemption.
Plan on paying off my cards too sm
as soon as I get my settlement. Plan to tell them that I refuse to bankroll their bonuses, parties and whatnot anymore and they can put their credit you know where. I didn't get a bailout--all I got was higher interest rates.
And who said anything about them paying for their father's expenses?
Not me, for sure because I have more sense than that. I have told my husband we have separate accounts and he is not responsible for me if I were to die first. He does not have to pay my credit card accts, etc. because those were made before we even met. Lastly, let me just say this, if the father of those children WAS competent, he could then take his own father (the g'father) to court and he most probably would get THEIR share because he is NEXT of kin, not them. I do not think you have a leg to stand on in this matter. I have enough knowledge to know who comes first, etc. My father died owning about 1,000+ for a doctor's bill. I was next of kin, did I have to pay, NO. Where you got that sentence she and her brother??? guess you just pulled out of thin air.
See my post above about paying off the credit
Sure, banks need to make a profit just like everyone else. But businesses throughout the whole country have become so money-hungry that they continue to cheat their customers more and more, in the name of making more and more money for themselves. MTSO's cheat us in order to make more profit. Insurance companies cheat us by making us pay more and more, and in turn denying more and more of our healthcare costs. Food companies cheat us by not only charing more for their products, but also by putting less and less in the box or the wrapper. (Cereal: Used to be about 3/4 full, now it's more like 1/2 full. Granola bars: Remember when 1 granola bar was an actual snack? Or even breakfast? Now the wrapper is the same size, but the bar is a mere shadow of its former self.) The banks cheat us by raising the rates or charging for services that used to be free. Mine recently starting nicking my checking account for $35 as 'overdraft protection' when my account became low. Now get this: I never bounced a check. I never wrote checks for more than was in my account. There was always at LEAST $25 in my checking account. But they would decide it was too low, nick me for the $35, and then surprize! My account is then MINUS $10! So what do they do? They charge me again!
I'm considering doing away with the bank entirely, including checking, and only using a pre-paid debit card. Now if there were just a way for our MT paychecks to electronically go into a bank-free debit card, instead of into the bank, then VOILA! Bye-bye, bankie.
quit paying and see if he says something..then you'll know..nm
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