Category: Finance management

It should be feasible to pay back the $10.000

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It should be feasible to pay back the $10.000,- in a couple of years. What I would try to do is refinance your debt complete, so try to get $4000,- from either your parents (in other words raise it to $10.000) or somebody else. If that is not possible refinance with a company like lowermybills.com or something like that (just Google lower my debt or something). I would recommend paying your parents a market efficient interest rate like 5% or 6% to reward them for helping you.

Then assess what you can save per month to pay back your parents. Don’t spend any money on things you don’t need and be very strict to yourself in the first couple of month to show that you can do it (set targets, don’t buy $4 frappucino’s etc.). Every penny counts.

Try to lower your monthly bills. Plan your budget. And again, be strict.

what i did once was call to verify my interest rate. it was 25%!!! I told them i was surprised it was so high becuase my other cards are around 10.. a few at 6 and one at 0 (i didn’t say those were bc dh is military and deployed LOL) but she talked to her supervisor and lowered it to 14% and that was just by calling and asking.. worth a shot!

It’s usually best to go after the debt with the highest interest rate first. The higher the interest rate the more you end up owing. I’ve got a debt I’m trying to pay off but the interest alone consumes most of every payment so that sometimes less than $10 goes toward the actual debt. That means it will take me longer to get it paid off, probably years longer. Before you decide what to pay on look at how much interest each debt, loan, or bill will cost you.

Actually there are 2 predominant schools of thought and I chose a third option.

Option one, like Vivian wrote, choose the one with the highest interest rate. By doing this, you will save a tremendous amount of money in the form of interest expenses. But what if it has the highest balance?

Option two, Dave Ramsey’s baby steps. Pay off from least to most and get a snowball effect going. Great idea, in the long run, it may end up costing a whole lot more in finance charges, but you can still get through it.

Option three that I chose. I chose the one with the highest monthly minimum that I could pay off in the quickest time. That was my wife’s car. This freed up $400 a month to apply toward the option two. So, if you have the means through some kind of savings, windfall, or whatever, I suggest option 3. This gives you the good feeling that one is paid off and you are well on your way towards everything else.

We have roughly $10,000 debt

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We have roughly $10,000 debt from $4000 loan and about 6000 in credit card. My wife’s parents are going to give us $6000 to get cought up because we are always behind and so we end up paying late fees and over limit fees. Plus our mortage a.r.m. keeps going up. Our credit is already in the pooper. We would like to make this money stretch as much as posible because we have other bills too. ( medical, power, phone and so on) Question is, if we negoiate a settlement with the cc companies, will that hurt oure score even worse. My wife wants to pay off loan ecause it is 25% interst. I say that we need to deal with the credit cards because of the over limit and late fees. Also I have read that if your credit cards are max out, that hurts credit worse. So, should we try to just pay on balance or try to get settlement with the credit card companies ?

You can negotiate the percentage rate that your cards are at say 6.9% down to 3% and then tell them that you are willing to make a huge payment also if they say that they cannot ask to speak with their supervisor …all credit card companys will do this you have to be firm with them. I’ve heard of negotiating down the rate on cards but am not sure how to do it. I’d like to try that if I can- I’ve been with one card for 10 years and would like to stay with them, but with a lower rate. Do you have to have another card offer to use as leverage or can one negotiate successfully by making a large payment?

This is what I used….hope it helps:

Call your credit card companies, tell them you’ve got offers for cards at lower rates and ask them to lower your rate. If you’ve paid regularly, they are likely to negotiate. If the company says no, tell them that you will be closing your account this week and transferring your balance to a competitor who offers better rates. So there’s no doubt about your seriousness, tell them the name of the competitor you have in mind. (It shouldn’t be difficult to come up with a name, since you’re probably constantly getting applications in the mail from credit card companies who want you to transfer your balances to them.) Ask to speak with a supervisor. Supervisors have the authority to give you a lower rate right then on the phone. In many cases, you can cut your rate in half simply by asking.

Not sure what to say? Follow this sample script:

“I have [name of card] with you and my interest rate is [X] percent. I received another offer in the mail from [other bank’s name] for [X] percent, but before I take it, I want to see if you can lower my interest rate instead.”

If the representative says they’re not authorized to do that, you say:

“Look, you and I both know that if I transfer my balance today, next week your bank is going to send me an offer to come back at an even lower rate. Why don’t you just save the bank the cost of that effort by giving me several points today?”

If the rep says it’s not possible because your credit card is at a fixed interest rate, you say:

“Actually, that doesn’t have anything to do with whether or not you have the ability to lower my interest rate. A fixed interest rate only means that my rate doesn’t vary with fluctuations in the prime rate. In fact, the bank can raise it on my account at any time by just giving me 15 days written notice. And the bank can, if it chooses, lower the rate today.”

If the rep still says they’re not authorized to do that, you say:

“I’d like to speak to your supervisor.”

Then speak to a supervisor and follow the above script again.