Recovering From Debt Overload

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Talk to your bank, find out if they will let you pay interest only until you get those nasty credit cards in check.
Also you could try to find a part time job in your neighborhood, in Canada public transit costs are tax deductable, (sorry, unfamiliar with US tax deductions) so even if you have to buy a bus pass to get to work this should not put you any further behind.

Jenna 1:18PM October 18, 2010

My wife and I can pay off our home loan within 4 years by paying extra toward this goal. Is it better to just pay the minimum payment and save the rest in a raining day fund or is it better to pay off the loan within 4 years as planned? By the way my wife just fell victim to the economy and lost her job. We have no credit card debt. Thanks for your advice.

Jim and Bonnie of OH 9:17PM April 04, 2009

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 4:15PM April 04, 2009

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 I confirmed that they have rescinded this action against every other Chase cardholder, with a similar agreement, too.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 11:35AM April 04, 2009

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 11:41PM April 03, 2009

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 4:06PM October 14, 2008

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 7:27PM January 16, 2008

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 4:56PM January 16, 2008

Are people really this bad with money? No assets? Just shelled out for a funeral, which is a complete waste of money... Multiple, nearly maxed out credit cards? Trying to earn money online?
You have got to be kididng. Here's my advice:
1.) get a real job.
2.) cut your expenses.
3.) stop buying things you don't need like funerals, christmas gifts, vacations, etc
4.) enact a plan to start saving and eliminating debt
Deciding where to send extra money isn't likely to have any positive effect on this person's financial situation because it's pretty obvious that she is generating debt faster than she can pay it off.

S Giudice of MA 4:53PM January 16, 2008