Weekly payments update

So a quick recap…

Splitting my CC payment into 4 saved me 10 dollars the first month.

The second month totals just came in and the savings increased to 17.00 This should dramatically decrease the time it will take for me to pay off this account.

Now I am applying this same method to both my cards..Will send an update next month once I know the impact.

Good Luck All.

I am not sure how this works. Can you explain. I have a Capital One with a balance of $400 as an example. My monthly minimum is $15 are you saying for this card you would pay $5 a week which would add $5 a month?

If I owed only $400, the minimums would only be about 12.oo or some. IMO, THAT is the one I would triple the minimums on and get rid of it soonest.

Meet the minimum on the due date, then in the middle of the month with your next paycheck, add another payment of something more, either another minimum or if you can, more..

IIRC, they were talking about a card with a big minimum and say $4700.00 would be about $200 and some a month. The poster would pay $100.00 2 weeks before the due date and then another $100.00 ON the due date.

First off NEVER NEVER NEVER only pay 15 dollars on a credit card, they will suck you dry with interest charges. But what I did and was trying to explain which you mayhave missed my original email a month or so ago.. but here it goes

My Minimum on the one card is 160, so i split that up into 4 equal payments, paying one of the equal amounts every week. What this does for you is reduces the amount of interest paid at the end of the month, thus giving you a bigger principal payment without having to actually fork out extra cash. If I continue to do this over the term of the re=payment I will save a ton of interest and pay it off much faster then I was currently doing. The minimums will continue to decrease and the principal payments will increase.

In your case you really need to sit down and figure where you can pull some extra doe from and get rid of that card, I wish I only a 400 dollar card to deal with… devote all your resources to that card, then you can move on to tackle anything bigger you have that is next in line.

Read More

Interest Rate Reduction on Credit cards

Hello All, This is my first post to the blog after being a reader for some time. I have some serious debt to tackle after my spouse was laid off from her job of 15 years. I have noticed that most of the advice regarding interest rate reductions, called for continous and persistent telephone contact until you get satisfactory results. I have started doing this but wonder if it would also help to send my requests in writing. If so, does anyone have a sample format that I could use?

You would be wasting your time sending it in writing at this point. just keep calling and asking for someone who can make that decision.

I am in a similar position as you. Do you talk to the first human voice that comes on the line or do you need to ask to talk to a manager? All I’ve gotten from them is that it’s the best rate available for me at this time.

What I have done with some success is talk to the first person who answers, then move up their food chain to a manager. When I get the, “That is the best I can do” and I know it is not, then I usually say something like, “So you do not mind if I transfer this whole amount to card x which is offering me 9.9%? Once I do, I will close this account permanently.” At that point, they will either bid me a fond farewell or go back in and give me a better rating. Sometimes it’s a better idea to apply for one of those bad credit loans with guaranteed approval instead of getting new CC with higher interest rate.

If I cannot get a rating below 12 percent, I go packing and find another card, but I make sure to call the original company back, get a manager, and tell them to close the account and why.

Good Luck.

Read More

Has anyone negotiated with credit card companies?

Has anyone negotiated with credit card companies on their own for a debt settlement? I have an option coming up at the end of March to withdraw money I had put aside for my kids’ college. I hate to do this, but hate even more to be so much in debt that I can no longer make the minimum payments, and if I get out of debt, then I will be in a position to restart college savings. That means that hopefully sometime in April, I will have between $10,000 – $12,000 in cash to try to settle over $20,000 in credit card debt, between three separate companies.

Does this sound doable? Would they settle for perhaps 40% of the balance? I’ve been unable to make minimum payments for the last 3 months or so, so I’ve been paying a smaller amount, to at least show I’m trying to pay something.

Thanks for any advice.

If you look through the archives you’ll find a lot of messages from people settling with creditors. My other half and I are in the process of doing that now and many are willing to take 30% just to get it off the books.

You can really get CC companies to take as little as 30%. Try to start around 25% and then negotiate from there. Give them a story, tell them how your dear old aunt left you just _____ amount of money and you want to send it to them to settle. :-) Either way, once they do agree to a settlement in full here are a few major things to remember.

  1. Don’t ever give them electronic access to your accounts, ever ever!!
  2. Don’t send any money until you get the agreement in writing!!
  3. Once you get the agreement, make a copy, sign and return to them with a check.
  4. Remember that forgiven debt is consider income and the CC company may send you a tax form at the end of the year and you will have to file it with your taxes. But I guess paying taxes on $15,000 is better then paying the $15,000.

One more thing I would add regarding taxability of any debt settlement. Any debt that you are relieved of that you are “insolvent” for is not taxable. See IRS Form 982 and Internal Revenue Code 108. When considering the amount of “insolvency” you can subtract from your assets your state’s exemptions. For example here in New York there is a $50,000 per person homestead exemption. Get some of Nolo’s books at the library on bankruptcy after exploring www.nolo.com and www.legalconsumer.com.

Also watch this video to find out more:

Read More

Do it on my own??? Where to start?

We have approximately 33K in credit card debt. We have done our best to stay current on our payments – but it’s been at the price of not being able to pay our regular living bills. THEN we end up buying necessities (food, gas) on the credit cards…and now their maxed…and so the ball rolls…

Anyway, I’ve been looking for a debt management company to work with but after I check them out, they always seem to be some sort of dubious effort to take advantage of someone in a time of hardship. My husband and I would really like to go about it on our own.

We have diligently gone through a monthly budget that we can handle. We wanted to start off calling our smallest credit card and seeing if they would settle and then go on from there. HOWEVER, we don’t have much built up to settle with yet, so any extra money sent to go toward a settlement will end up keeping us from being able to pay the minimum payment on the other higher amount credit cards as we go. Our concern is what will happen with those accounts while we are working on paying down/negotiating the smaller ones.

Does sending partial payments help? Should we contact them in writing and ask them to go ahead and close the account and waive fees? Or should we wait on that?

We are about 1 month past due on most of are cards at this point, so I know it won’t be worth negotiating with the larger ones until later. I also think that after we pay off the smaller ones (and get our tax return!) that we may be able to do a ‘snowball’ payment plan to pay off the remaining debt – but how much interest/late/overlimit fees would have mounted up by then???

Are we going about this all wrong? Sorry for all of the questions… I would just like some thoughts as to our idea to approach our situation. We really want to avoid bankruptcy if possible.

Read More