credit card debt
credit card debt questions and answers
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Q: what is the fastest way to get rid of credit card debt?
Im a student and struggling with school finances as well as credit card debt, my paycheck mostly goes to school, what is the fastest way to pay off my credit debt.
A: debt is something that many people struggle with and if you let it get out of control it will consume you and your life. Learn the snowball affect. That means start paying off you lowest amount first. Take the amount and pay more than that. and while doing this you need to pay the minimum of the other debts. then when the lowest amount is paid off you take that amount you were paying for it and roll it into the next lowest debt. this is what we in the finance industry call the snowball effect. It works and works well. Good luck paying off your debt and don't let it consume you.
Q: When does the statute of limitation start on a credit card debt that is a two year no interest no payment plan?
When does the statute of limitation start on a credit card debt that is a two year no interest no payment plan? Would the start date occur on the payment being 30 days late after the two year period - would this first 30 days past due be a breach of payment agreement? There was no attempt by the debtor to pay this debt after the 2 years promotional period. Credit debt originated in the State of California with a 4 years statute of limitation..
A: Typically the SOL starts from the date or last activity or last payment -- not the breach.
The first missed payment would constitute a breach of the contract. At that point the creditor should have taken action to collect the debt, including filing lawsuit if needed.
Q: Selling home, making a profit - better to pay off credit card debt or put money into new home?
I have some credit debt left and I'm wondering if I should put the extra money I make from selling my home into the new house I'm purchasing or if I should go ahead and pay off the credit card debt. What is a smarter decision?
Just wanted to say I'm not late on my credit card bills, just wondering if I should go ahead and pay them off in full right away
A: Have you lived in it for at least 2 of the last 5 years? If so, there's no capital gains tax from the IRS, and the money is yours to spend as you wish.
Glenn is correct - This all depends upon what you'll do with these newly cleaned up credit cards..... It's a falacy that people can get out of debt by placing all their credit card debt onto their house. They usually run up their cards again in a few years and are then worse off than before.
Put the money to the house. Start paying EXTRA to your credit cards. Start cutting up your credit cards. Then start sending extra to your house.
FREEDOM!!!!!!
Q: What does default on credit card debt mean? do i still get charged intrest & extras in default of payments?
Sometimes i get letters from credit card debt angencies saying i owe the same balance that i had for 6 years, but sometimes shows more balance with intrestest but only one letter said this, the rest all had same balances which were 6 years ago when i was in debt of £2,000, but one letter said £6,000, i have not replied or ever gotten back to the debt credit card collectors, agencies etc, so whats going on, does default mean no intrest charges?
A: How many times are you going to ask this one this afternoon? When they catch up with you they'll take the debt, the interest, and all the charges that they make for finding you. You'll have nothing left - including anything you own ! ! !
Q: What is the best way to pay off credit card debt?
I've heard of companies like cureadebt.com that will settle your credit card debts for 70% of the amount owed. I've also heard of government grants to pay unsecured debt(credit cards), but I don't know where to get the info on them. I'm considering a second mortgage to pay these off with a lower interest rate. Thoughts?
We no longer use credit cards, so the balance only increases because of high interest rates.
A: Transfer your current credit card balance to an interest free card. This usually gives 9 months to pay off. Make paying off the debt your main priority above everything else. If you have balance at the end of the 9 months on the said card, transfer to another of the same free interest.By the way the credit card should not be used for any more purchases whatever. The sole purpose is to pay over all monies owing
Q: How will settling credit card debt affect my credit score?
I have several accounts on my credit that are all in good standing. I just have one credit card with $25,000 in debt. I was making payments on it but when my husband was laid off, I couldn't make payments. It's over 90 days due and I want to settle the debt but I am afraid of how it will affect my credit score and what I can do to make sure it is not too negative on my credit. Any advice?
A: If you are 90 days past due, it is already a negative on your credit. The credit card company will probably be sending you to collections.
At this point, you can try to work out a settlement with credit card company but they are not going to accept small payments over a long time. If you want to settle for less than the full balance, you will have to have a lump sum. The account would be noted on your credit report as charge off/paid -- a negative. You would receive a 1099 for the forgiven portion which would have to be included in your income tax return.
Have you considered credit counseling? Check here for a NFCC member: http://www.nfcc.org/. These are legit, non-profit credit counseling companies. They offer debt management progams for a small fee. They don't settle your debt. They negotiate lower interest and payments so that you can pay off all your debt.
While in the program, it is noted on your credit report. However, upon completion, that notation is removed and you will have decent credit.
Q: How should I handle my credit card debt since I am foreclosing on my house?
I am going to let my house in California foreclose. I have about $28,000.00 in credit card debt. Should I file for bankruptcy? Should I just not pay my credit cards? Or should I continue to pay my credit cards? Is there a certain dollar amount of income you are allowed to make to be able to file for bankruptcy?
A: Before you look into BK, you should check out www.debtbills.com. They are an alternative to BK. You will have exeperienced attorneys that will be contacting your creditors on your behalf.
Q: How should I pay off my credit card debt when I just received a lump sum of money?
I recently received a good amount of money from a work related injury and now have the opportunity to pay off the $20,000 of credit card debt I now have in collections. Should I just pay the complete amount I owe or should I settle with the credit card company to pay only 25% of what I owe. This debt has been in collections for two years. What option would be better in the long run? I figure I'm already so late on payments how much worst can my credit get if I settle.
A: If you have the money, you need to pay off the debt in full.
I believe that when you owe people money, you should pay it. I never base financial decisions on what it might do to my credit score.
If someone owed you money personally, I think you would want them to pay you in full.
The only exception I could think of would be that if you are no longer capable of working, and this is the only money you may be getting.
Q: How much debt can I incur on my card without getting my lines of credit lowered?
I have no credit card debt and an an excellent credit report. I am going to do a small remodel on my rental property and plan to use my Home Depot card with no interest no payment for 12 months. I plan to use a few other cards as well. I thought that 30% is the best to load on to each card to maintain my credit score. Am I correct?
A: Congratulations on managing your credit very well. If you are worried that you may have your credit lines lowered, I would call each credit card holder and tell them you plan on using more of your available credit and tell them why (to fix up your rental property). Also, make sure you tell them that the balances will quickly be paid down and remind them that you are a valuable customer and you value your relationship with them.
Yes, you are correct. If you go over 30% utilization on your available revolving credit limits, your score will drop. However, it will not take a considerable hit until you are well over 50% utilization.
Q: How do I go about eliminating my credit card debt?
I am 23 with a nine-month-old son, and I owe (on top of my student loans from college) approximately $30,000 in credit card debt. I am looking to do a debt management/consolidation program, but was wondering if I should just contact those credit card companies that say to call them if I have "financial difficulties" instead? Also, which debt consolidation programs would you refer, if any? Thank you!
A: I'd do a lot of research before you enter into a contract with a CCCS because while it might get the bills paid - it will not protect your credit score or rating any better than dealing with it yourself. You don't state what your income is and if buckling down and paying more each month on your cards would get it paid off. I had $40k of debt, $30k being CC debt and drowning in it having been through a messy, expensive divorce. When my attorney did the calculations, he figured it would have taken me 40 years to pay off the $30k of CC debt at the rate I was going.
So I wound up filing a Chapter 7 BK and it wiped out 100% of the CC debt legally in about 3-4 month's time (from the date of filing until discharge date).
The other $10k was a car loan, which I continued to pay on 'as agreed', did NOT reaffirm the loan, and they did not come and take my car. I paid it off back in April and now it has a clean title.
No ~~~BK is not for everyone, but it sounds like you have a lot of debt and a little one to take care and his future to think of. And while going through a BK will trash your credit/score, it's no more so than muddling through years of dealing with collection agencies, some CCCS that will likely "fail" you.. and creditors that will STILL report you even those you are in a payment plan. Or you can wipe out the debt legally through a chapter 7, start fresh and be able to SLEEP at night.
You can get a free consult with most any BK lawyer and he or she will go over all of your debts, your income and help you decide the best course of action.
I have BEEN THERE and done it and this is not an "ad" for anything,but a testimonial. While it wasn't something I really wanted to do .. BK was the best solution for me during a really tough time in my life. I am not sorry I did it.
Hope this helps. Ignore the jerks that can't even give sensible or helpful answers and just bash you. It's clear they've never walked in your shoes.
Q: Who is responsible for the credit card debt of a person who dies?
I am having doubt about the credit card debt of a person. My uncle passed away but he is having credit card debt. Who is responsible for that debt?
A: His estate. Any assets that he had must be liquidated and used to pay off all his debts, including credit card, before any distribution is made to his heirs.
Whoever is the executor of his will or the administrator of his estate must notify his debtors of his death and make arrangements for payment. They will not be responsible for paying any of his debts out of their own pocket.
Q: How much credit card debt do you have as a couple with one child?
Just wondering what the average is. My husband tells me everyone has debt, and I can understand my house and my car, but what is your credit card debt?
A: We have no credit card debt. Credit cards are great if you use them judiciously. They can also be your financial downfall. However, according to a statistic I saw in Kiplinger's magazine, 15% of credit card holders have balances greater than $10,000. (I expect it is higher now considering the floundering economy) . So DUH!, most credit card holders have a lesser balance or no balance at all.
Some other credit card stats:
As of January 1, 2006, the average credit card debt per household in the U.S. was $9,159.
Sixteen years earlier on January 1, 1990, the average credit card debt per household in the U.S. was $2,966.
The average American has 9 credit cards. (This includes gas and store credit cards )
Q: How do get my credit card debt to zero?
I had left USA around 4 years back as I could not get a job(software). When I left I had credit card debt. Now i want to be back and normalize my debt. I currently dont have a job. I checked my credit report on the internet but confused with the terms. Its certain that collection agency must be trying to locate me. I cant figure out my current debt, thats when I left and now(including interest?). I need help in how to take the first step and how its going to affect my job-hunt.
A: If you get a copy of your credit report, it will show you how much you owe on your card(s). Depending on how long ago you defaulted, it may be better to *not* pay it off and just wait out the debt. Most debt will clear 7 years after the last reporting. I would recommend going to a site like http://www.truecredit.com, it should also help you with the terms.
Q: Does the credit card debt restart if a different agencies send letters about your debt even after 6 years?
I mean i heard after 6 years or so your credit card debt is written off, but if during those 6 years you get letters from different solictors, agencies etc does this include the 6 years or is it restarted from the beggining when to a another agency?
A: I'm not sure if you are asking about the reporting time line or the statute of limitations so I will address both.
Derogatory accounts show on your credit report for 7-years from the date of first delinquency. It is illegal to re-age debts.
The statute of limitations however can be restarted if you pay on a old debt or in some States be even admitting that the debt is yours.