Can you help me with my credit card woes?

Question

I have 2 cards maxed out. If I cancel both cards but continue making payments......will the credit card companies still continue to add new interest? I'm not sure what to do. I know this probably isn't the smartest thing to do so please give me advice before I make a huge mistake. :)

Answer 1

Cut the cards in half. Make a plan to pay them down/off as soon as possible. Keep in mind it may take 3 years to dig out of this hole.

Answer 2

Not sure what you mean by "adding new interest", they are going to charge interest for as long as there is a balance on the account.  You probably do not want to close the accounts since there is a balance, simply cut up your cards and don't use them any more.  Pay the minimum payment on the one with the lowest interest rate and pay as much as you can on the one with the highest rate.  When that is paid off then start on the other.  Good Luck.

Answer 3

First of all, don't cancel both cards. Continue making payments, as much as possible each month, this will help with the interest situation. Interest will continue until the cards are paid off. Having a credit card isn't a bad thing. One should be enough, for emergencies. If you want to cancel, just cancel one of them. Creditors look at how you pay your credit card bills, on-time, etc. if you have 2 cards and are paying them each month it will be a good thing on your credit report. If you want to pay them off and not use them anymore, cut them up. That leaves the accounts "open" and you won't be tempted to use them. They will send you new cards when the old ones expire. Put one away and cut the other one up. That leaves you with one for emergencies. Hope this helps!