What is the best debt consolidation solution?

[zylander]

Before I start, please try to keep the "your a retard for this" comments to a minimum, I know it was a really bad idea and now I'm living it.


About 9-12 months ago I had great credit and owed very little on one credit card. My girlfriend who I know can see has a serious shopping problem had shitty credit and tons of CC debt, total combined about $12k (mostly high interest department store cards). I chose to let her transfer $10k of her debt onto one of my lower interest Chase cards. For a few months everything was fine and she was paying me regular monthly payments. Then she started slowly charging up all her cards again and she is now back up to about $8-10k. Between my card, her cards and what she owes on her motorcycle, lets say its total about $20-25k. She makes $45k/year plus bonuses and some commission and has another job on the side where she makes anywhere from $100-200/week cash under the table.

I have already taken her credit cards, all she keeps in her wallet is cash from the side job and her debit card. If we can get everything consolidated I believe she will have no problem paying everything off within a couple years, provided she has some supervision and doesn't keep spending, but right now, she has so many bills it doesn't seem like the debt is going anywhere.

Questions;

1. She banks with WaMu/Chase, is it possible to put a daily or weekly spending limit on a debt card?

2. What is the best way to consolidate $25k worth of debt? Should we go to a bank or a credit union and see what our two signatures combined can get? Are all those debt consolidation companies you see on TV and the internet actually helpful or are they just a scam?


CLIFS:
1. g/f is a shopaholic.
2. Lots of cc debt on hers and my cards.
3. Need to find a way to consolidate.

 

[Epic Fail]

Originally posted by: zylander
has another job on the side where she makes anywhere from $100-200 cash under the table.

Hmmmm.

 

[MagnusTheBrewer]

Best of luck to you. I don't have an answer for your questions but, is there nothing that she has purchased able to be returned?

 

[Gibson486]

Originally posted by: Epic Fail

Originally posted by: zylander
has another job on the side where she makes anywhere from $100-200 cash under the table.

Hmmmm.

hhahaha...i missed that one....

 

[CRXican]

transfer the 10k back to her cards

dump that bitch

 

[xSauronx]

Originally posted by: CRXican
transfer the 10k back to her cards

dump that bitch

sounds like hers are full again

id desperately try to find a way to get the debt in her name again, whatever she has to sell or do and dump her

does she require the motorcycle? if not, sell the god damn thing.

and she better be god damn beautiful and amazing in the sack. i demand pics

 

[iGas]

Get a spread sheet and show her 45K per year is not going to let her cut down her deb the way she is spending.

25K @ 22% interest = $5500 = $458.34 monthly CC interest payment.

$3750 - 35% tax = $2435/month - $458.34 monthly interest payment = $1976.67

$1976.67 - rent - hydro - phone - cable - internet - car/motorcycle payment - fuel - groceries - personal needs - entertainment - eating out

At this rate both of you will never ever get out of debt.

Cut unessential spending, and you may get out of debt in 2-4 years:

- entertainment
- eating out
- cancel cable
- lower monthly cell phone bill leaving it at home or cancel service.

 

[rasczak]

mycesi.org. theres a minimal fee per account in consolidation, but for the most part, they were great. i was able to drop 16k in 2 years.

 

[xanis]

this

Originally posted by: CRXican
transfer the 10k back to her cards

dump that bitch

and

Originally posted by: xSauronx
and she better be god damn beautiful and amazing in the sack. i demand pics

 

[zylander]

Originally posted by: iGas
Get a spread sheet and show her 45K per year is not going to let her cut down her deb the way she is spending.

25K @ 22% interest = $5500 = $458.34 monthly CC interest payment.

$3750 - 35% tax = $2435/month - $458.34 monthly interest payment = $1976.67

$1976.67 - rent - hydro - phone - cable - internet - car/motorcycle payment - fuel - groceries - personal needs - entertainment - eating out

At this rate both of you will never ever get out of debt.

Cut unessential spending, and you may get out of debt in 2-4 years:

- entertainment
- eating out
- cancel cable
- lower monthly cell phone bill leaving it at home or cancel service.

She doesn't pay rent. She lives with a friend who's parents gave her a house, talk about lucky. I have already cut her spending, the only essential bills she has are;

-Cell phone
-Car/moto insurance
-Moto payment
-Gas
-Personal needs

We go out to each a couple times a week, of which I pay. Most of the time we wither eat at home or at her aunts house. Either way when it comes to food, I usually take care of it. When you take the credit cards out of the equation, her regular needs listed above do not account for very much.

Originally posted by: rasczak
mycesi.org. theres a minimal fee per account in consolidation, but for the most part, they were great. i was able to drop 16k in 2 years.

Thanks, Ill take a look.

 

[zinfamous]

From what I've heard through all the countless debt counselors and specials making their rounds through the talk shows and morning news over the previous couple of months, you should Never, EVER, NEVER use a consolidation company for CC debt. They're all scams, supposedly. I've never been shitty with credit cards like your GF, so I've never needed such a thing and so never looked into it.

(I do consolidate student loans through Sallie Mae, but this type of debt consolidation service has a long-standing history, and is generally quite reputable)

Apparently the only related service that you can trust is loan counseling.


I know it's pointless now...but I really can't fathom why you didn't confiscate/destroy her cards as part of the original agreement to absorb her debt. does she have your tiny balls in a vice grip?

 

[zylander]

Originally posted by: zinfamous(I do consolidate student loans through Sallie Mae, but this type of debt consolidation service has a long-standing history, and is generally quite reputable)

Apparently the only related service that you can trust is loan counseling.

Can Sallie Mae be used for CC consolidation?

Originally posted by: zinfamousI know it's pointless now...but I really can't fathom why you didn't confiscate/destroy her cards as part of the original agreement to absorb her debt. does she have your tiny balls in a vice grip?

No....they're in her purse I don't know why I didn't take them away the first time but they are gone now.

 

[iGas]

Originally posted by: zylander

Originally posted by: zinfamous(I do consolidate student loans through Sallie Mae, but this type of debt consolidation service has a long-standing history, and is generally quite reputable)

Apparently the only related service that you can trust is loan counseling.

Can Sallie Mae be used for CC consolidation?

Originally posted by: zinfamousI know it's pointless now...but I really can't fathom why you didn't confiscate/destroy her cards as part of the original agreement to absorb her debt. does she have your tiny balls in a vice grip?

No....they're in her purse I don't know why I didn't take them away the first time but they are gone now.

Don't forget to take the ATM card & the cheque book as well.

 

[zylander]

Originally posted by: iGas

Originally posted by: zylander

Originally posted by: zinfamous(I do consolidate student loans through Sallie Mae, but this type of debt consolidation service has a long-standing history, and is generally quite reputable)

Apparently the only related service that you can trust is loan counseling.

Can Sallie Mae be used for CC consolidation?

Originally posted by: zinfamousI know it's pointless now...but I really can't fathom why you didn't confiscate/destroy her cards as part of the original agreement to absorb her debt. does she have your tiny balls in a vice grip?

No....they're in her purse I don't know why I didn't take them away the first time but they are gone now.

Don't forget to take the ATM card & the cheque book as well.

Well this is why I had my other question. Is it possible to go to your bank and have them put a spending limit on your debt card? She still needs it for gas and every day needs.

 

[iGas]

Originally posted by: zylander

Originally posted by: iGas

Originally posted by: zylander

Originally posted by: zinfamous(I do consolidate student loans through Sallie Mae, but this type of debt consolidation service has a long-standing history, and is generally quite reputable)

Apparently the only related service that you can trust is loan counseling.

Can Sallie Mae be used for CC consolidation?

Originally posted by: zinfamousI know it's pointless now...but I really can't fathom why you didn't confiscate/destroy her cards as part of the original agreement to absorb her debt. does she have your tiny balls in a vice grip?

No....they're in her purse I don't know why I didn't take them away the first time but they are gone now.

Don't forget to take the ATM card & the cheque book as well.

Well this is why I had my other question. Is it possible to go to your bank and have them put a spending limit on your debt card? She still needs it for gas and every day needs.

Banks in Canada will put a limit on it if you ask. Not sure about the US.

 

[spidey07]

From the sounds of it she should file bankruptcy - I'm serious. I know it sounds bad but she's a prime candidate and may serve as the wakeup call needed.

 

[zylander]

Originally posted by: spidey07
From the sounds of it she should file bankruptcy - I'm serious. I know it sounds bad but she's a prime candidate and may serve as the wakeup call needed.

That has been in the back of my mind for a while now.

 

[spidey07]

Originally posted by: zylander

Originally posted by: spidey07
From the sounds of it she should file bankruptcy - I'm serious. I know it sounds bad but she's a prime candidate and may serve as the wakeup call needed.

That has been in the back of my mind for a while now.

In her case and with that much debt and income it needs to be considered as an option and may actually be the best one.

 

[zinfamous]

Originally posted by: zylander

Originally posted by: iGas

Originally posted by: zylander

Originally posted by: zinfamous(I do consolidate student loans through Sallie Mae, but this type of debt consolidation service has a long-standing history, and is generally quite reputable)

Apparently the only related service that you can trust is loan counseling.

Can Sallie Mae be used for CC consolidation?

Originally posted by: zinfamousI know it's pointless now...but I really can't fathom why you didn't confiscate/destroy her cards as part of the original agreement to absorb her debt. does she have your tiny balls in a vice grip?

No....they're in her purse I don't know why I didn't take them away the first time but they are gone now.

Don't forget to take the ATM card & the cheque book as well.

Well this is why I had my other question. Is it possible to go to your bank and have them put a spending limit on your debt card? She still needs it for gas and every day needs.

Not sure if it can be done in the US; I would think so, but never looked into it.

Honestly though, this sounds like a bad idea as she would never learn how to restrain herself. She needs an effing wake-up call and Spidey's suggestion may be what she needs.

as for Sallie Mae, I'm quite sure they only handle student loans and such. Or at the very least, the rate you would get on CC debt would be preposterous.

 

[kranky]

Bankruptcy sounds like a drastic solution to a not-that-serious problem.

She doesn't need a debit card for everyday needs. She can get cash and use it. That's a very effective way to stay on a budget. She doesn't need a limit on her card either - she needs to move funds out of her checking account to a savings account that's not linked to her ATM card. Even better, move that money to YOUR account so you can get her debt to you reduced. Given her income and expenses, she could have that debt cleaned up in less than 2 years. No debt consolidation needed. No bankruptcy needed.

Now, that assumes she is willing to change her lifestyle to make sacrifices. But I doubt she will, since she ran her cards up again after dumping some of the debt on you.