Financial advice

[Tempered81]

Financial advice

Everyone needs some, right?

Any tips on how to solve a credit card debt problem. You can post a response here, or I'll take some private messages. Sadly, I have no money to offer for your knowledge. Really feels like things are caving in on me now, and it's getting a little out-of-hand.

I'm assuming a take-control attitude and steadfast saving are the core of the answer? Is ther no magic trick? Like how i was magically tricked into having debt?

Thanks in advance.

 

[SmoochyTX]

Originally posted by: jaredpace
Financial advice

Everyone needs some, right?

Any tips on how to solve a credit card debt problem. You can post a response here, or I'll take some private messages. Sadly, I have no money to offer for your knowledge. Really feels like things are caving in on me now, and it's getting a little out-of-hand.

I'm assuming a take-control attitude and steadfast saving are the core of the answer? Is ther no magic trick? Like how i was magically tricked into having debt?

Thanks in advance.

Stop spending on useless things. Sell useless things you've already bought. Take on a second job.

 

[IronWing]

Watch this video, it will change your life.

 

[greengrass]

I need advise also.

 

[arrfep]

Originally posted by: ironwing
Watch this video, it will change your life.

Reminds me of the MadTV skit with the "Eat Less, Move More" diet skit.

Fat Lady: "But I don't get it..."

 

[Tempered81]

Thank you, smoochy. That is pretty much what i figured.

 

[Tempered81]

Wow, If i don't buy stuff, and I eat less as well, things might be going very well for me!

I'll try that.

 

[arrfep]

Serious answer: Find a 0% (if anyone is still offering them) balance transfer, move as much of your debt as possible to that card. Pay for food/rent/utilities/gas, and all money left over every month goes to your credit card bill. If it's not going to keep you alive, or directly lead to you making money (i.e. your car needs a new tire, without it you can't drive to work), DO NOT BUY IT. And that's basically it. There's no magic bullet. Unfortunately, precedents are being set right now that would suggest otherwise. Getting out of debt is one of those things that you can't take shortcuts with and still come out winning.

 

[sjwaste]

Originally posted by: ironwing
Watch this video, it will change your life.

Damnit, you beat me to it. But yes, that's true.

Basically, OP, if you still have any decent credit left, take out some cards with 0% balance transfers and get your credit card debt onto those. Pay off as much as you can for what is hopefully a 12 month period. Hopefully, you will pay off enough to increase your credit score enough to do a second round of this. Rinse and repeat until they're paid off.

Credit cards generally apply your payments to the lowest interest balances first. That means that a 0% BT card that doesn't have a 0% purchase rate will accumulate interest on purchases until the 0% transfer debt is paid. I don't mean to be condescending, but since you're in this mess, I should translate: Do not purchase anything at all on these cards.

While you're at it, cease to use a credit card at all. Live well below your means until its paid off. Consider selling some of the junk you bought on ebay to further reduce the debt.

 

[IronWing]

Originally posted by: jaredpace
Wow, If i don't buy stuff, and I eat less as well, things might be going very well for me!

I'll try that.

There really are only two alternatives: increase income or decrease expenses.

The income side, I can't help you with. You know your skills and time availability for that.

On the expense side, review your expenses, track every penny. To cut expenses you have to know where the money is going. Then re-evaluate your needs. Do you have/need cable TV? Do you have/need a cell phone, land line, a long distance plan? We dumped our long distance plan in favor of phone cards and save ~$15/month. Any other subscription services that are on autopilot that you might drop? Nexflix is cheaper than going out to the movies. The library is cheaper than Netflix. Do you have a car payment? Any way to dump the car for something cheaper and get rid of the payment?

 

[speg]

It's not hard. If you want to buy something, you need money. A credit card is just a transaction method. I do not understand how so many people fall into this trap, but anyways you're already trapped and need to get out.

But you need to realize that you've probably been living beyond your means, and you have to accept that you are going to have to give that up. If you can't, or don't want to - I'm sorry, tough luck but you've sewn your own seeds of destruction...
1) Cut up your card. You obviously haven't proven responsible enough to use it, so for your own good, destroy it.
2) I like arrfep's suggestion of doing a balance transfer to a 0% card. But once you get the card, cut it up too. You don't want to fall into the same trap twice. If you can't find a 0% transfer, try a debt consolidator.
3) Find out what you're spending your money on. Cut out all the unnecessary crap and create a budget. Make sure you budget some fun stuff for you too, like going out to eat once a week, a movie, whatever floats your boat. You don't want this process to be completely miserable.
4) Cash only. Based on your budget withdraw enough cash at the beginning of the week to last get you through the week and THAT IS IT.
5) Use your excess to pay down as much as you can every month. Forget about having a backup fund, or an emergency fund right now - pour everything you have left over into your debt.

 

[Tempered81]

Hi,

Some really good advice here. I like the cash only weekly budget, sell stuff, and 0% card. Thank you AT'ers

 

[zzuupp]

I'd only change speg's #1. Put the card in a ziplock bag. Put the bag in a cup of water in the freezer.

If you have a real emergency, thaw it out. Otherwise, if you don't have the cash, you can't afford it.

 

[IronWing]

Originally posted by: zzuupp
I'd only change speg's #1. Put the card in a ziplock bag. Put the bag in a cup of water in the freezer.

If you have a real emergency, thaw it out. Otherwise, if you don't have the cash, you can't afford it.

Ahh! The credit markets are frozen!