i have a big credit card debt of 23K that is a charge off. I have no other credit card debt on other cards. Should I do transfer some of my balance from the charged-off credit card to other credit cards, so that I can at least get back below the credit limit or just try to pay as much as I can on it and suffer the over limit charges every month. It's a 29% interest rate.
Fri Oct 04, 2013 4:06 pm
Cash: $ 380.25
Joined: 09 Feb 2009
have you ripped up your cc and aren't using it anymore?
Risk comes from not knowing what you're doing. (Warren Buffet)
quote:Originally posted by SAWX1982 i have a big credit card debt of 23K that is a charge off. I have no other credit card debt on other cards. Should I do transfer some of my balance from the charged-off credit card to other credit cards, so that I can at least get back below the credit limit or just try to pay as much as I can on it and suffer the over limit charges every month. It's a 29% interest rate.
If you have more than one credit card in addition to the charge off one, then you can expect all of the credit card companies will screw you with the same 29% interest, so beware, they will all get you in the end, and as such, do not think that spreading your debt around will help, it will not.
Once you get in this much debt, there is no way out for most as the 29% interest will insure you can never pay down your debt in less than decades if paying the minimum each month. Sadly, you have passed the point of no return, so you have a serious decision to make, cut up all your credit cards, and concentrate every last extra dollar you have on paying down debt or you will never see an end to your debt situation. Once you default on one, your credit rating is destroyed regardless if you can pay it off in time, so good luck.
Success to all,
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Mon Oct 07, 2013 6:03 pm
Jonathan Winter First Time Poster
Cash: $ 0.20
Joined: 13 Oct 2013
First, assess where you are, how you got there, swear to yourself that itís time to change and go to work. If you were really, really good at getting into debt, you most likely have three or four credit cards, maybe even more; all with sizeable balances.
Step 1: Determine how much you can commit to paying toward your credit card debt - then find more. What are you spending money on that you donít really use or like. Cancel that magazine subscription, get rid of your premium cable channels, end the wine of the month club.
Scan your bank statement and credit card bill(s) for recurring monthly charges for things you can cancel.
Remember the three Sís
1) Shed costs;
2) Simply your life;
3) Sleep better at night.
Ok, now that youíve got some cash, how are you going to pay off your debt? There are many theories, most have merit, but I like the High-Low Method
Step 2: Pay Them Down Using the High Low Method
In a nutshell, the High-Low Method states that you pay off your credit cards from highest interest rate to lowest interest rate - making the minimum payment on all but the highest rate cards along the way. Apply all extra cash to the highest rate card. Once that credit card is paid off, repeat the process with the second highest rate credit card, then the third highest rate credit card, etc, until you are left with no debt, then go out and enjoy your life.