Experiences with reducing/escaping credit card debt?

[EagleKeeper]

cthulu2016 (3,473 posts)

 Experiences with reducing/escaping credit card debt?
This is probably a topic of interest to many. Have you escaped large credit card debts, entirely or reduced through negotiation?

I don't mean by paying them off 100% or not having CC debt in the first place. (Both of those are rather obvious.)

I mean where circumstances arose such that you could not plausibly pay them off, or even service the interest.

I'm talking about renegotiation, principal reduction, bankruptcy, etc..

How did it work? What was your experience like?

http://www.democraticunderground.com/10021047953

Uh Oh, someone is in trouble.

This campfire has only 2 replies so far, it's early but it has potential.

[DumbAss Tanker]

Sounds like someone in the ancient lost city of Rlyeh spend a whole lot more than he was making, and for a pretty good while.

 

[jukin]

I can't help there. I am a productive responsible member of society that uses the grace period and convince of plastic but not the 12% interest rates. Luckily the big-gov democrat totalitarian government diktat called Dodd-Frank will now make me go to cash to get out of paying the new swipe fee. Thanks democrat progressives. 

[longview]

Oooo.  Ooooo.  I know!

You stop using the card.  Cutting mine up is a fond memory.  Then you scrimp in other areas and pay more than the minimum, and wah-lah, your credit card debt is gone!

Oh, wait...    They want a special favor.  They don't want to pay what they agreed to pay. 

[ReaganForRushmore]

As a PSA to DUmmies, Chapter 7 (liquidation) and Chapter 13 (repayment plan) stay on your credit report for ten years. Yeah, they say seven years, but financial
institutions have a nasty habit of keeping information on reports. Rather than be a slave to a credit card, why not follow the mantra "Cash s King". Sure FICO scores may
be lower, but you are in control of your own destiny rather than a financial institution "too big to fail". My banker is always to trying to upsale a HELOC or a personal line of credit every time he sees my financial statement. When I ask for zero percent the look on his face is priceless.

Always pay yourself first.

[obumazombie]

Credit cards are the number one way libs can get free stuff. They don't see reneging on their agreement to repay as theft, which it is. It steals money out of the pockets of cardholders who do pay their bills.

[Ogre]

cthulu2016 (3,473 posts)

 Experiences with reducing/escaping credit card debt?
This is probably a topic of interest to many. Have you escaped large credit card debts, entirely or reduced through negotiation?

I don't mean by paying them off 100% or not having CC debt in the first place. (Both of those are rather obvious.)

I mean where circumstances arose such that you could not plausibly pay them off, or even service the interest.

I'm talking about renegotiation, principal reduction, bankruptcy, etc..

How did it work? What was your experience like?

Typical dumbass, you didn't get into debt overnight and short of winning the lottery there isn't a magical solution to get out of it overnight either.

As others have stated, cut up the card(s), establish a monthly financial plan and stick to it, pay off the high interest one(s) first, learn from your experience and don't repeat your past failings.

[DLR Pyro]

Every credit card I ever received came with a zero balance on it. Any balance charged against the card were purchases I made and consequently charges I was responsible for.

I think I see the DUmmies problem here. Responsibility is an unknown quantity to them.

[Evil_Conservative]

Well, I have reduced eight credit cards down to one with a balance.  Most are store cards and only have a balance for a month and get paid in full. 

I don't complain about balances and act like I don't owe them the money.  I have a monthly budget I write out like this: 

Week - 8/4  Pay $_______

Daycare - $_____
Bill #1 - $_____
Bill #2 - $_____
Savings - $_____

It's real basic, but it has helped me knock my debt to almost NOTHING.  Once my last credit card is paid off, I'll be paying an extra $100 a month to my car.

[Jasonw560]

Two words: Dave Ramsey

[GeorgeKaplan]

frustrated_lefty (2,552 posts)

3. Declared bankruptcy 2 years ago.

Lost everything to Katrina back in '05, followed by a divorce shortly thereafter. I simply couldn't make the minimum payments. You can find some calculators online which will give you an idea how long you'll be paying at a given rate. Here's one: http://www.bankrate.com/calculators/credit-cards/credit-card-payoff-calculator.aspx There finally comes a point where there's no crawling out of the hole.
 
I found a lawyer who would take installment payments for 6 months, roughly $2500 in total. At the end of that time, he filed the necessary paperwork and we went through the bankruptcy proceedings. It can be relatively painless assuming you've made good faith effort to pay your debts. It's certainly humiliating, and you want to have a budget lined out to insure you'll be able to live within your means afterwards. Sometimes it's the only way, though.

I lost everything in Katrina back in '05. Everything. I didn't take a single dime from the government even though I could have. No Road Home, no nothing. I had a few thousand in the bank, that's all. Seven years later I own a new home, have everything I want and still haven't taken anything from the government. Didn't need anything but my hard work. I do love my 65 inch TV.

Ooops. Sorry, I did take a debit card from the Red Cross because my bank was wiped  out and I couldn't get to my cash. Within a couple of years I donated 10 times the amount I borrowed simply because I realized just how important Red Cross is.

If you can't go from being in poverty to making a living in ten years you don't deserve anyone's pity because you are pathetic. Get off your ass and make something of yourself.

[Bad Dog]

I love how he/she/it came out with "I don't have this problem but, I was just wondering".  Like the guy who's "friend" has a sore on his dick.

[Kyle Ricky]

Two words: Dave Ramsey

I was going to say this, but you beat me to it. It is because of him that I cut up all my credit cards and do cash now.

The only things that should be on credit are a vehicle and your house. And maybe student loans, depending on who you are. Anything else should be paid with cash. Sure you may have to save up for it, but saving for it gives you a chance to think about whether you really want it or not.

Most DUmmies have a habit of racking up thousands in debt and then filing for bankruptcy because they don't want to pay it off. Frankly, it is their stupidity that got them there, so it should illegal for them to file for bankruptcy.

Here is a little factoid for the DUmmies: A credit card with a $1,500.00 balance will take you 20 years to pay off if you make the minimum payments. Why? Because of the stupid interest rate and double billing the credit card companies do.

[Aristotelian]

Live within your means, DUmmy, it really is that simple.

I once was a student and lived on very restricted income, so I had very restricted out-goings.

Then I had some starting out crappy paid work, I still paid off the overdrafts which I'd built up as a student by having few outgoings.

Now I have a significantly better paid job, dont have any debts and have saved some cash.

About to take a career shift which will lead to me never earning much, so I'll change my spending patterns to match.

[Gina]

I don't mean by paying them off 100% or not having CC debt in the first place.

just WOW!  always trying to find a way out of responsibilty

[Zeus]

Make a budget
Stick to your budget
Live below your means, not within your means below your means.

[Gina]

I am doing Dave Ramsey now.  I love it. It feels so good to pay a credit card off.  It really feels good when I am shopping somewhere and they ask me if I will take their credit card.

I do use the Target CC and pay it off every month because I get 5% off my purchaes.  I use the Costco Amex because I get 3% back on gas and 1% back on all other purchases.  I get a nice check at the end of the year to buy Christmas presents with.

[Gina]

I just thought of something.  Dave Ramsey is about personal financial responsibility.  I wonder what the breakdown is of libs vs cons that use his program.   

[Aristotelian]

just WOW!  always trying to find a way out of responsibilty

I notice the way that "escape debt" is interpreted by us as "pay debt off" and by DUmmies as "never have to pay debt back".

[Kyle Ricky]

I just thought of something.  Dave Ramsey is about personal financial responsibility.  I wonder what the breakdown is of libs vs cons that use his program.   

I am thinking there are no libs. Mostly because he is a devout christian and he likes to say bible passages during his seminars.

As for his show, I can't listen to it. Mainly because most of the people who call in make $100k+ a year. It reminds me of watching 'House Hunters'. A person choosing between three houses, each one is over $500,000.00, and the husband calls it a 'Fixer upper'!

[obumazombie]

Make a budget
Stick to your budget
Live below your means, not within your means below your means.

^This...and,
If your outgo exceeds your income, then your upkeep will be your downfall.

[Kyle Ricky]

We just have to realize that liberals spend money like the government does. No wonder they are bankrupt.

[BEG]

I am thinking there are no libs. Mostly because he is a devout christian and he likes to say bible passages during his seminars.

As for his show, I can't listen to it. Mainly because most of the people who call in make $100k+ a year. It reminds me of watching 'House Hunters'. A person choosing between three houses, each one is over $500,000.00, and the husband calls it a 'Fixer upper'!

That's not my impression from his show.

[BEG]

Well, I have reduced eight credit cards down to one with a balance.  Most are store cards and only have a balance for a month and get paid in full. 

I don't complain about balances and act like I don't owe them the money.  I have a monthly budget I write out like this: 

Week - 8/4  Pay $_______

Daycare - $_____
Bill #1 - $_____
Bill #2 - $_____
Savings - $_____

It's real basic, but it has helped me knock my debt to almost NOTHING.  Once my last credit card is paid off, I'll be paying an extra $100 a month to my car.

Yeah but you are responsible.

[IassaFTots]

That's not my impression from his show.

Not mine either, but I like watching house hunters too.  Especially the International ones.