Recovering From Debt Overload

credit card debt strategies

I suggest that you write your congressman to make sure that the credit card companies cannot shift all of the costs of THEIR bad management onto consumers now that their times are tough. A million letters to congressman WOULD work. The issue is coming up in the Senate this week to try to reign in some of the most predatory of lending practices that Joe Biden and and many Republicans pushed for over the last decade. Call your Senator!!

Cal of RI @ Apr 04, 2009 16:15:34 PM

Interest rates

I carry a sizable balance on 8 cards (66%). I will pay off the highest interest rate card, first, and then the next highest. I am saving money, in this fashion. If a card company sends me a letter giving me the choice to opt out, or accept a rate increase, then I opt out. I have closed two cards (Discover, and Advanta Business), in this fashion. I will not compromise, either. I will not cave in to their "new" terms. Chase Credit Card just tried to raise my rate and tack on a new monthly $10 service fee on my balance, which is from a 3.99% promotional offer from 2006. I told them "no way." They can't renege on their promotional offer. I told them I will sue, and I will gather others into a class action lawsuit. They backed right down and removed everything. I confirmed that they have rescinded this action against every other Chase cardholder, with a similar agreement, too. I told them we will come down on them like a ton of bricks, and I meant it. Don't give in, don't cave to their demands, just cancel their card. Make the minimum payments, if you can. If you cannot, then don't forget that YOU come first. Your rent and food are more important than their credit rating.

Wilbers of AK @ Apr 04, 2009 11:35:51 AM

line of credit

i , i used to have a home equity line of credit with (chase bank) until 3 days ago, soddenly i got this letter from the bank saying that i'm not allowed to withdraw any more money.

i only used half of the limit and never made a late payment , never saw this coming ,

can they just do that???

joe lima of NY @ Apr 03, 2009 23:41:48 PM

i suggest paying off your credit cards according to lowest owed and getting rid of that cards balance, then put that cards payment and all you can afford into the next lowest balanced card. this is coined as the "debt snowball" and Dave Ramsey is famous for coming up with it. you should check him out.

of @ Oct 14, 2008 16:06:00 PM

Credit Card Zappers

I signed up with this service called Credit Card Zappers to help me with my credit card debt.

They saved me some money. Took off interest charges and a $75 balance transfer fee.

Haven't found another company who will do that, unless you are way behind on payments and owe a lot.

kelly taylor of CA @ Jan 16, 2008 19:27:10 PM

Thanks for the feedback... but really, you wouldn't pay for a funeral of a close relative? That seems a bit harsh. I did not get the sense that the person asking this question was spending frivolously. Sometimes, unfortunately, events conspire and lead to significant setbacks.

Kimberly Palmer of DC @ Jan 16, 2008 16:56:44 PM