Taking a loan to pay off credit cards?
Between my wife and myself we have around $7,000 of credit and personal loan debt. I think I can get a loan that has a better interest rate than all of them, and use the money to pay them all off and get it into one easy low(er) payment. Is this advisable? Is there a better way to go about it? I plan to have it all paid off in about a year and a half to two years. At the moment I'm not struggling to pay or anything, but I think this would probably make it cheaper and easier. I am planning to sell my house in about two years so i need to get out of debt and build a small finance cushion to take any losses the house would cause. I am expecting small losses, not short sale, but closing costs. Advice or experience?
Can you still use your credit card after paying off collections debt?
Can you still use a credit card after it has been in collections?It depends.Usually when a credit card has been in collection the debt has been sold off to that collection agency and the card is then closed.If you have paid off the debt to the collection agency you should get a letter from them that states that the debt has been paid in full.Shortly after the collection agency has received your final payment they are supposed to report this to the three credit reporting agencies (Experian, TransUnion and Equifax) and the original creditor. Make sure they do!If you still wish to use your credit card call the credit card company to ask if the card can be reopened or if a new card/account can be opened. I would say your chances are about 50/50.I recommend going with a secured credit card if you want to rebuild damaged credit from going into collections, especially if your original credit card company will not reopen your account. Make sure to do your research and only charge what you can afford to pay in full each month and your score will increase quickly especially after 6–9 months.If you are struggling with rebuilding your credit score and are looking for tips click here.
What is the point of credit cards?
The main point is for companies to make money, and for consumers to have access to a line of credit should they need to use it.Credit cards are the opposite of debit cards; with debit cards, you're limited to the amount that you have in the bank, and with credit card you're limited only with the umost amount which bank is willing to loan you.Yes, credit card is a short-term loan.It is not designed to be used by consumers on a regular basis as a sustainable financial model, it's akin borrowing money that one does not have, so in order to rationalize such a spending, consumer needs to have a very good reason for going into debt.As with any loan, there are 2 options: either paying it off in full when it's due and avoiding extra fees, or paying in installments (those suggested minimum amounts due on monthly statements).Some consumers are diligent enough with their planning and with their finances that they use credit cards as means of paying for regular purchases BUT they pay off the balance at the end of the month in full, thus they get a short-term loan at 0% and the convenience of having one's transactions listed and itemized.I am one of those consumers: linking credit cards to Mint app, and I have up-to-date balances and transaction categories at my fingertips.Then there are consumers who want to get something expensive (hopefully something they actually need) but they do not have means to produce cash on the spot; let's say it's a house.Very few persons have $600k cash on them, so this is why a bank gives another loan, a long-term loan, to a consumer.Another example would be a car; and educational expenses are highly debatable.Still, I am totally with you on the points about fiscal responsibility and diligence, and whenever possible, it's recommended to use regular debit cards for transactions; with credit cards, one commits future earnings to past expenses, which is a very taxing and a very burdensome way to exist.
Lost job....can't pay credit card min payments?
I lost my job and unemployment SUCKS in my state. I was bringing home almost $500 per week and now UI will be about 1/2 of that. I can't pay my credit cards min payments. What do I do????? I am current as of now, but won't be in about 10 days. Help me!
My credit cards are killing me so what are my options?
Credit card companies generally will only offer hardship programs if you've fallen 2 months behind in payments. If you're current on payments, they are not going to reduce your interest. They absolutely are not going to lower the balance due. However, they sometimes do offer settlements for less if you are near or at the point of default...but they only do this if you can pay the settlement in full up front....and not in monthly payments. - NFCC is a non profit organization that was set up by the credit card industry to offer assistance to people who are struggling to pay their credit card debt... They can offer reduced payments and interest (but not settlements for less). http://www.nfcc.org As a general rule, they can reduce your total monthly payment down to 2% of your total debt...so with 10K in credit card debt...your total payment would roughly be $200. They can also reduce the interest to around 10% - Enrolling in this program involves closing all your credit cards so that you can't use credit again. Your credit report will get updated to "enrolled in debt management." This does not specifically damage your credit...but it will make it hard to get any sort of new credit...like being approved for a car loan.
Can you pay someone else's credit card bill?
I expect to come into some money in the next few months (legally lol), and although I will be saving the majority of it, I want to do my dad a favor. I am adopted and my parents have been so good to me, but now reaching old age and nearing retirement, they're worried about living. My dad currently is struggling with credit card debt, and I know if it were to be taken care of, he would be able to retire okay. However, he would never let me do that, so I'm wondering if I call his credit card companies, if they will let me pay his balance without his consent? I figure they don't really care as long as they get it, but I don't know for sure. I don't want to just gift him the money because I want it to be utilized properly. Thanks!
What happens if I’m having financial difficulties and struggling to pay?
Spend less or Earn more….lolUse your time better?