How should you pay off credit card debt?

Question

I dont want to hear anything about not using credit cards. I did what I had to do as a single parent to raise 2 teenagers without any support from their dad for 18 yrs. Both of my kids are pretty self serving and I get no thanks or anything but griping about my terrible parenting skills from both of them. They do not realize what it took for me to pull it off.

I have been paying $350 every 2 weeks an a card I used to purchase a car with 4% intrest until its paid in full which should be in the last week in Decemeber. My daughter said she would make the payments then renigged. She has to have the car to get to work.

I also have another card with less then about $1800 on it. I had to purchase a lawn mower and the card has to be paid off in May of 2009. The interest rate on this card will go up to something like 28% unless I pay it in full by May 2009. I am trying to be a resonsible card payer. I was wondering if you have any suggestions or idea's on credit card paying?

Answer 1

Just curious....why are they raising the rate to 28%?  That is the sort of rate you pay for a late payment, which triggers the penalty clauses of your card.

Anyway, my suggestion would be to see if you can get another card and "roll over" the $1800 to it.....assuming you can't negotiate something with them first.

Answer 2

Credit counseling is a very common form of on-line debt consolidation. It is also known as credit card consolidation. A credit counseling company will be able to lower your monthly payments by getting interest rate concessions from your creditors by contacting them and negotiating for lower interest rate on your behalf.

For your reference http://www.ezconsolidation.com my one of friend had recently consolidated his loan from there to pay all of his credit card debts with bad credit, you can try this source may this could help you.

Answer 3

If you still have good credit, apply for a new card with a lower rate and balance transfer the old debts onto the new, lower rate card.

If you don't have good credit, there's not much you can do in terms of having the rate lowered.  If you are really in a bind, contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS) in your area. They can negotiate much lower payments and interest rates.

They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it impossible to obtain new credit while you are enrolled in their program....so don't use this service if you anticipate applying for a new apartment or mortgage anytime soon. Otherwise, it can be a very good way to deal with your debt.