IMO, Credit cards are like any tool, if used correctly, it is a great convience, if abused they can be be used to cause great harm.
If I might offer some advice...
Look at how much credit you have on each of your credit card. It could be possible that you have more "credit" than you need. I called the bank to lower my limit (in case of an emeregency, I could have it raised again).
If possible, pay at least double (if not triple or higher) than the minimum payment.
When making a credit card purchase have a plan to have that purchace paid off in no more than 3 months (unless the purchase is used for emergency repairs such as house or car).
What is easier said than done is to live a lifestyle that you can afford.
There are many qualified financial planners out there that can offer good advice.
Oak and Wacky,
Congrats on getting out of debt!! :)-->
I am sure that it was not easy, It takes courage to make the commitment to get out of debt!
In 2002 I ditched the credit counselling agency due to their mismanagement and negotiated separate payment plans with all my creditors.
Sometimes I think they are in cahoots with the credit card companies..
One I had to deal with once CHRONICALLY made late payments. The late payment charges were far worse than the interest..
I started off with four credit cards. One of them sold the debt to another credit card company. So far, no problem.
The CCS had a computer breakdown...not sure of the nature of the problem, but when they got up and running again, the information that was in their files had the original creditor, rather than the one that they sold the debt to.
So, when I sent my payment in to be disbursed to my creditors, the money that was supposed to go to the new creditor was sent to the old creditor. I started getting late notices from the credit card company, and called the CCS several times, with no satisfactory answer. The credit card company was not buying my (true) story that I was sending the money to the Credit Counselling Service, and refused to contact them, since it was my debt. I was getting calls from the credit card co. asking for payment; my explanations fell on deaf ears. I would explain the situation in detail, then the drone on the phone would pause and say "So, would you like to make a payment today?" -->
Finally the CCS admitted their error and said that they would get the money back from the wrong credit card company. This took about two months. In the meantime I had to pay the back money to the credit card company, incurred late charges and additional interest, none of which the CCS would pay. At one point I suggested to the CCS that, since they made the mistake, they should pay off the credit card co. before they received the money back from the wrong credit card co. that THEY sent it to. They retreated back to their script and waited.
Keep in mind that I had documentation for all of this, cancelled checks, printouts from the credit card co. & CCS...no question what happened
Eventually I was able to talk to someone at the credit card co. higher up than the trained monkeys who usually called, and was able to negotiate a deal that did not involve the CCS
Or, rather than pay any payments, just pay off your balance whenever the statement shows up.
Of course, the credit card companies HATE that. In the industry, those that do that are referred to as "deadbeats".(!)
I LOVE my credit card for traveling. I don't know how to get along without it on the road...
Bingo! :D-->
Credit cards are a good tool for money management if used properly. Currently I don't ahve any credit cards, but make extensive use of a debit card.
At the time my income was rather low and my ex-wife was putting on a lot of pressure to "believe" for prosperity. One day she and another woman in our twig told me and the other husband that they were no longer going to accept "we can't afford it" from us when they expressed a "need". Rather than deal with the constant haranguing from her and TWI "leadership", I would foolishly charge things, figuring that I would figure out how to pay for it later. (Did I mention that I was foolish? )
Initially, my credit limit was $1000. But every time I got close to that amount, I would be granted a higher credit limit. When they stopped extending the limit, I'd just get another card. Oh, they loved me. They got quite a bit of interest out of my hide.
Congratulations! That is a huge thing to tackle and overcome. I'm in the same boat right now.
Every month I kick my own foot. Then I remember all the trips I went on (I LOVE Mexico A LOT!!!)and the things I bought and still enjoy. Then I kick my own foot some more.
How long did it take you to get out of debt?
Right now I'm banking on selling our house next year for a large amount of money and using some of the money to pay it off. Then I'm calling all of the mafia banks and telling them to never give me a limit over $3,000.
Look at how much credit you have on each of your credit card. It could be possible that you have more "credit" than you need. I called the bank to lower my limit (in case of an emeregency, I could have it raised again).
I applied for an AMX card last month solely for Costco purchases. They called me up within a week of applying and told me I had a $33,000 credit limit.... I said ummm, make it $2000. The lady literally begged me to leave it higher.
The average house in the Lincoln, NE area is upwards of $100,000...However...the fixer-upper's tend to be below $85,000....
Credit can be very hard to resist like those candy bars at the check out line in the grocery stores. Credit can be very awesome as in buying a long term asset or building a business.
what was the interest? I pay about 11% at HSBC I am offered lower or zero but I'm araid of incurring late feesor thaey will up the interest or something, so I stay with my local bank and try to keep it under the amount of a paycheck.
to me this is a burden. next to 21 it sounds like nothing but still I am paying them money every month .
I get how people get into debt.
it would beso eay to spend on my grand kids etc. or go out to dinner everynight.
with the bankrupt business and laws changing people are going to be very sorry . before these new laws many went into debt and just said OH my bad cant pay and went bankrupt. my sister did and bought a house three years later.
that is changing and these college loans are going to kill people into middle age.
Where in the world do you buy a house for just over $40,000? I didn't know that existed anymore. What kind of house is it for that much money?
I have seen such recently in the area that we are moving into (Bangor Maine).
I just signed a lease for an apartment for my family to 'winter-over' in, while I am still building our new home. We hope be be moved into our new home next summer.
While working on this property, sometimes over the past couple months, people will pull into my driveway to either look at what I am doing, or looking at various other properties in the area that are for sale. One couple that has came by numerous times, had been looking at a property about a mile down the road. Last week, they came by with more questions, as they had purchased that property. It was a smaller lot, I think 25 acres with a small 2 bedroom house; but they got it for $18k. the house has been derilect for a couple years, so it will need TLC. They will not be my exact nextdoor neighbors, but rather 2 properties down from mine (like I said about a mile).
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Danny
Cool
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Wacky Funster
CONGRATULATIONS OAKSPEAR!!!!
I, too, after 7 years of chipping away at them paid off my last one this month...in fact, just sent the check 2 days ago!!!
WE'RE FREE!!!!!!
And what a perfect way to start off a new chapter in your life with your sweetie...
:)-->
Never again, huh? I hear ya!
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Ham
Congratulations! Debt free, and no thanks to der vey
:)-->
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Ham
Sometimes I think they are in cahoots with the credit card companies..
One I had to deal with once CHRONICALLY made late payments. The late payment charges were far worse than the interest..
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oldiesman
Oakspear,
Care to share what your debt was?
:D-->
I am currently in about $9,000 worth of debt to Discover Card, which seems like a lot, but I have a zero interest rate.
I pay it off monthly and the deal they gave me is better than a bank.
Credit cards are great, but you must know how to control them, rather than them controlling you.
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Zshot
IMO, Credit cards are like any tool, if used correctly, it is a great convience, if abused they can be be used to cause great harm.
If I might offer some advice...
Look at how much credit you have on each of your credit card. It could be possible that you have more "credit" than you need. I called the bank to lower my limit (in case of an emeregency, I could have it raised again).
If possible, pay at least double (if not triple or higher) than the minimum payment.
When making a credit card purchase have a plan to have that purchace paid off in no more than 3 months (unless the purchase is used for emergency repairs such as house or car).
What is easier said than done is to live a lifestyle that you can afford.
There are many qualified financial planners out there that can offer good advice.
Oak and Wacky,
Congrats on getting out of debt!!
:)-->
I am sure that it was not easy, It takes courage to make the commitment to get out of debt!
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George Aar
Or, rather than pay any payments, just pay off your balance whenever the statement shows up.
Of course, the credit card companies HATE that. In the industry, those that do that are referred to as "deadbeats".(!)
I LOVE my credit card for traveling. I don't know how to get along without it on the road...
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Oakspear
The CCS had a computer breakdown...not sure of the nature of the problem, but when they got up and running again, the information that was in their files had the original creditor, rather than the one that they sold the debt to.
So, when I sent my payment in to be disbursed to my creditors, the money that was supposed to go to the new creditor was sent to the old creditor. I started getting late notices from the credit card company, and called the CCS several times, with no satisfactory answer. The credit card company was not buying my (true) story that I was sending the money to the Credit Counselling Service, and refused to contact them, since it was my debt. I was getting calls from the credit card co. asking for payment; my explanations fell on deaf ears. I would explain the situation in detail, then the drone on the phone would pause and say "So, would you like to make a payment today?"
-->
Finally the CCS admitted their error and said that they would get the money back from the wrong credit card company. This took about two months. In the meantime I had to pay the back money to the credit card company, incurred late charges and additional interest, none of which the CCS would pay. At one point I suggested to the CCS that, since they made the mistake, they should pay off the credit card co. before they received the money back from the wrong credit card co. that THEY sent it to. They retreated back to their script and waited.
Keep in mind that I had documentation for all of this, cancelled checks, printouts from the credit card co. & CCS...no question what happened
Eventually I was able to talk to someone at the credit card co. higher up than the trained monkeys who usually called, and was able to negotiate a deal that did not involve the CCS
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Oakspear
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Oakspear
Credit cards are a good tool for money management if used properly. Currently I don't ahve any credit cards, but make extensive use of a debit card.
At the time my income was rather low and my ex-wife was putting on a lot of pressure to "believe" for prosperity. One day she and another woman in our twig told me and the other husband that they were no longer going to accept "we can't afford it" from us when they expressed a "need". Rather than deal with the constant haranguing from her and TWI "leadership", I would foolishly charge things, figuring that I would figure out how to pay for it later. (Did I mention that I was foolish?
)
Initially, my credit limit was $1000. But every time I got close to that amount, I would be granted a higher credit limit. When they stopped extending the limit, I'd just get another card. Oh, they loved me. They got quite a bit of interest out of my hide.
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oldiesman
$21,000 really isn't that much, considering.
I also use the Citi Diamond Rewards card, that gives me points everytime I purchase.
A bonus with that card is getting 5 points for every dollar spent at a gas station and drug store.
So I pay the balance off every month, and sometime in the near future, will accumulate enough points to earn a new computer.
:)-->
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Ham
That's about half a house. A cheap house, but a house nonetheless..
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Ron G.
Congratulations, Oakspear!!
Now you can go WOW!!
I'm all debt free except for my mortgage, but it's cheaper'n rent.
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Oakspear
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Oakspear
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GarthP2000
... like you really need that kind of headache.
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Nottawayfer
Oak,
Congratulations! That is a huge thing to tackle and overcome. I'm in the same boat right now.
Every month I kick my own foot. Then I remember all the trips I went on (I LOVE Mexico A LOT!!!)and the things I bought and still enjoy. Then I kick my own foot some more.
How long did it take you to get out of debt?
Right now I'm banking on selling our house next year for a large amount of money and using some of the money to pay it off. Then I'm calling all of the mafia banks and telling them to never give me a limit over $3,000.
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Jim
I applied for an AMX card last month solely for Costco purchases. They called me up within a week of applying and told me I had a $33,000 credit limit.... I said ummm, make it $2000. The lady literally begged me to leave it higher.
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Nottawayfer
Where in the world do you buy a house for just over $40,000? I didn't know that existed anymore. What kind of house is it for that much money?
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reikilady
The average house in the Lincoln, NE area is upwards of $100,000...However...the fixer-upper's tend to be below $85,000....
Credit can be very hard to resist like those candy bars at the check out line in the grocery stores. Credit can be very awesome as in buying a long term asset or building a business.
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mj412
21000 is ALOT of money for me.
what was the interest? I pay about 11% at HSBC I am offered lower or zero but I'm araid of incurring late feesor thaey will up the interest or something, so I stay with my local bank and try to keep it under the amount of a paycheck.
to me this is a burden. next to 21 it sounds like nothing but still I am paying them money every month .
I get how people get into debt.
it would beso eay to spend on my grand kids etc. or go out to dinner everynight.
with the bankrupt business and laws changing people are going to be very sorry . before these new laws many went into debt and just said OH my bad cant pay and went bankrupt. my sister did and bought a house three years later.
that is changing and these college loans are going to kill people into middle age.
I think it is stressful for anyone to live under.
congrats Oak.
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Galen
I have seen such recently in the area that we are moving into (Bangor Maine).
I just signed a lease for an apartment for my family to 'winter-over' in, while I am still building our new home. We hope be be moved into our new home next summer.
While working on this property, sometimes over the past couple months, people will pull into my driveway to either look at what I am doing, or looking at various other properties in the area that are for sale. One couple that has came by numerous times, had been looking at a property about a mile down the road. Last week, they came by with more questions, as they had purchased that property. It was a smaller lot, I think 25 acres with a small 2 bedroom house; but they got it for $18k. the house has been derilect for a couple years, so it will need TLC. They will not be my exact nextdoor neighbors, but rather 2 properties down from mine (like I said about a mile).
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Ham
Well, I did just say a house.. not that you would really want to live there..
:D-->
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Ham
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