Author Topic: Help me Roll over my Credit Card Debt?!  (Read 1169 times)

ElleCab

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Help me Roll over my Credit Card Debt?!
« on: August 15, 2019, 01:20:43 PM »
I am a single mom who got hit hard in the credit dept. I have about 3 credit cards, that combined equal about $17k debt. I was laid off for a few months and couldn't pay. Now I have a job and have super high fees.

Help! How can I roll these over into one card or a better interest situation?

frugalfoothills

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Re: Help me Roll over my Credit Card Debt?!
« Reply #1 on: August 15, 2019, 01:55:33 PM »
How is your credit score?

You could look into balance transfer cards as one option. That's what I did in the beginning of my journey to expedite the payoff of $12,000 in cc debt. But, it's probably not likely that you will qualify for a card with a high enough balance to roll all $17K at once. I ended up splitting mine between two balance transfer cards with 0% promotional rates, but I was able to easily qualify for those because despite the high CC balance, I had a relatively low debt-to-income ratio and great credit score.

Also, goes without saying, using balance transfer cards to solve your problem only works if you stop using your other cards. Period. Balance transfer cards are just credit cards. Don't add more to the mix if you're not sure you can be trusted to stop the bleeding.

slappy

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Re: Help me Roll over my Credit Card Debt?!
« Reply #2 on: August 15, 2019, 04:48:25 PM »
You could also try calling them and asking them to lower the interest.

robartsd

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Re: Help me Roll over my Credit Card Debt?!
« Reply #3 on: August 15, 2019, 05:17:52 PM »
If you just recently got your job and started paying again, it might be too soon. Be sure to make all your minimum payments on time. If you monitor your finances on Mint or Personal Capital, you'll likely be shown advertisements for balance transfer cards that your credit score qualifies for (though if your income is limited or your job history is too short you might still not qualify). Meanwhile, if you have extra money available to pay down the credit cards, pay extra to the highest interest rate. Don't worry too much about keeping an emergency fund while you pay down the credit cards (as long as you're in good standing you can almost always use the card to purchase what you need if an emergency does come up).

Rosy

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Re: Help me Roll over my Credit Card Debt?!
« Reply #4 on: August 15, 2019, 06:13:03 PM »
Quote
I have about 3 credit cards, that combined equal about $17k debt. I was laid off for a few months and couldn't pay.

Now I have a job and have super high fees.


Deep breath. Sh$t happens to all of us:) and now that you have a job you can fix this mess.
If you have a good income this will be nothing but a temporary blip - if you are low income and need to play catch up on other bills or replace a tire on your car asap then it is a different story.

Either way, review and analyze and be honest with yourself as to what you can truly do. You may have a couple of different options or you might not, but as long as you have money coming in and the credit card company is not demanding that you pay it all off right now - you will be fine.
 
1. Get out the latest statement for each card.
2. What is the true current balance and current interest - for each card?

3. Are you currently being charged the penalty rates instead of your previous interest rate?
4. What are the current monthly minimum payments for each card?

5. Can you still use your cards or have you maxed them out? or has the credit card company reduced your limit?

6. Is it possible for you to pay the minimum payments if for some reason you cannot get approved for a zero percent APR card?
Would you have enough money left for living expenses and any other payments that you may have fallen behind on if you paid only the minimum on your cards for say three months??

I mention three months because I am assuming you have no EF (emergency fund) left and need to build one up first before you do anything else. It would be best if you stopped using all of your credit cards, stat.
If that is not (yet) possible then set yourself a max of say $50.

7. The most important question is: Were you living below your means before you lost your job?
Were you actually paying off every one of your credit cards off each month?

Once you've paid all your bills for the month going forward - using the minimum payment on your cards, is there enough left for discretionary income?
If not what can you do to improve your budget and your income?

FWIW it is unlikely that you will get approved for a new zero percent APR card with a high enough limit to simply do a balance transfer for the total $17K. But you never know until you tried.

More homework - check out doctorofcredit.com it is a respected, trustworthy blog. Search for zero percent APR credit cards and read the review of each card before you apply online.
Pay attention to whether the card gives you zero interest only on the balance transfers or if the zero percent is also good for purchases.
What is their fee for a balance transfer? 3% - 5% of the balance?
What is the time frame in which you need to conduct your balance transfer - 60 days or less? You can't afford for anything to go wrong - due diligence.
How long is their zero percent offer good for - 12 mo - 15 mo - 18 mo? The longer the better for you.

In addition, check out all your local credit unions - they may well have a suitable card and perhaps even a bonus for opening a new checking account with them. There are all sorts of deals out there - you need to hunt them down.
For instance, I just found out that my credit union has a new card that allows you three years for pay off the balance transfer and charges you only 5.99% during that time. Perfect for someone in a pickle trying to escape those high interests. 

Something else to consider, some employers allow you to split your paycheck and send monies to two or even three different banks - that would give you a direct deposit (which might be required for opening the account and keeping it fee-free) and divorce this entire mess from your regular budget.
Figure out what you can semi-comfortably afford to pay to each card and send that money to this one new bank or credit union.

You may have been thinking of a consolidation loan. Don't, you will be better off thinking this through and setting up a flexible payment plan yourself.
Pay off the highest interest debt first.

Once we know your budget and overall situation we may be able to give you some money-saving tips to help you along the way.
Hope that helps and gave you some starting points.