Credit Card Debt

[crispfin]

I got caught up and got burned by credit cards after high school. But thank God and the help of my family I got out of it and I assure you, the lesson has been learned. I don't have any credit cards and I'm glad I don't.

[RamboPreacher]

i have some and have learned the lesson, but unfortunately I had nobody to help me out of it. I keep a very tight budget to overpay minimums to get this gone. My wife has none. we decided it best to not have joint CC accounts until I got rid of what I had. most of what I have was a choice made due to a divorce and choosing to keep my house instead of selling it and giving the ex half of the equity.

[Jeremy Gault]

After a bankruptcy, about three loan write-offs, and a foreclosure, my credit is so bad that even the credit card companies don't want me.
It's probably the best thing that could have happened to me. Credit cards are only worthwhile if you pay them off every month. Let them get much beyond that, and you are a slave to them.

Do you still get all those pre-approved credit card offers in the mail? Hmmm there might be a benefit to your situation!

[DaJudge]

My wife and I use our credit card for just about everything we purchase, but we pay the balance off in full every month, so we carry no debt. A credit card is a useful tool, if used wisely. For one thing, it's safer than checks. If someone steals your check book and forges your checks, the money comes out of you bank account, and after you fill out your affadavit of fraud, it sometimes takes the bank over a month to restore your money to your account. If someone steals and uses your credit card, you simply call the company, tell them to shut the card down and send you a knew one. After you fill out some fraud forms, then the charges are taken off of your card. You aren't out a dime, and there is less hassell. DO NOT use those VISA debit cards though. Those things are worse than checks! The money comes directly out of your bank account and a thief can empty out your account in minutes!

The other great thing about my card is that I get rewards points just for making everyday purchases. I've redeemed my points for 2 free iPods so far!

The main thing about a credit card is that you must be disciplined enough to pay off the balance every month. The first month that you spend more than you can pay off, you should cut up the card. Credit card debt can eat you alive.

[pastorables]

As I've said, we are in substantial credit card debt, but much of it has been unavoidable. We had several thousand dollars in medical dues even after health insurance coverages, etc. Rather than have the hassle of bill collectors calling and harassing us all the time, we decided to pay off the hospitals and doctors with credit cards, etc... We also paid a few thousand in IRS taxes with credit cards also. A pastor doesn't get the same benefits of most employees when it comes to income taxes being considered self employed, etc... As others have stated, in the beginning we kept the balance paid each month, but once you get multiple cards with each bearing a few hundred dollars it is very hard to keep them paid off.

pa

[pastorables]

The other great thing about my card is that I get rewards points just for making everyday purchases. I've redeemed my points for 2 free iPods so far!

Can you please explain how this works. I have one card with around 20,000 points, but I don't have a clue what that will get me?

pa

[MacUser]

Mine contacts me.. but your front company for Visa may not do that. Contact them and ask to redeem these points.


And Ritchie. may I suggest that you take advantage of the zero percent on transfers that these credit card offer for a limited time. Say you are paying over $200 in interest per month... If you can keep moving your balance to cards that offer that introductory 0 (or low percent) limited period you could shave $2400 a year that you could apply to the principle. I know people whom buy vehicles this way and end up paying little to no interest.

[pastorables]

And Ritchie. may I suggest that you take advantage of the zero percent on transfers that these credit card offer for a limited time..

Been there, done that, and own the T-Shirt.

pa

[MacUser]

So it was unsuccessful? Worked quite well for some. Curious on what was the negatives in doing that if I may ask?

I would also suggest (if not the painful obvious choice) to source the lowest interest loan available (again if lower than what you currently have) and even consolidate (if many cc's involved).

Saving as much interest as possible would be my determination. Because in the end it would be more than a T-Shirt.. but an entire wardrobe!

I do know parts of your situation (and that it was out of your hands - as in- except for the Grace of God we could all be in that situation) and know God has brought you thus far and won't leave you in your current situation.

God Bless

[pastorables]

So it was unsuccessful? Worked quite well for some. Curious on what was the negatives in doing that if I may ask?

Chris,

I didn't say unsuccessful or negative experience. I just meant that I was one step ahead of you. I have indeed saved interest, but the actual debt is still massive.

God bless,
Ritchie

[MacUser]

but the actual debt is still massive.

God bless,
Ritchie

Don't remain fixated on the end sum. Keep your mind focused on what you like to do or what your purpose is. Let me give an example.

Fred Carl - Creator and President of Viking Range Corporation is now a multi-millionaire and is by him and his company he built... rebuilding Greenwood, MS (literally building by building). But before that he filed bankruptcy 3 times and was an utter failure. I'm sure if he focused on the money he owed.. he would have never kept trying and built a company that is saving his home town.

I know it's not on topic.. but something I just had to comment on.

[DaJudge]

The other great thing about my card is that I get rewards points just for making everyday purchases. I've redeemed my points for 2 free iPods so far!

Can you please explain how this works. I have one card with around 20,000 points, but I don't have a clue what that will get me?

pa

If your credit card bank has a website (almost all do) it should have a link about how you can redeem your points and what you can get for them.