Too much "bad" credit..

[angelic_fate]

I have about $29k of credit in credit cards.

I'm using about $16k for promotional 0% balance transfers. However, some financial distress had arisen and I can't pay for that $16k when the promotion is up. So I need to find a way to minimize my interest payments as 18-21% of credit card interest is a BAD thing.

As a student (yes, I'm curious as to how they managed to give me so much credit), I already have "too much" credit for what I make. I had part time jobs here and there, making as much payments as I could.

I do graduate in May of '09 and I am determined to get a decent job to wipe my debt situation clean.

I was thinking of a low interest LOC but with this much credit - nobody is willing to give me more. Should I wait till I graduate to apply again? Or should I be canceling credit cards to lower my credit - does that raise my chances to get approved for a LOC?

[UrbanPoet]

are you in good standing?
If you've always met your minimum payments without being late, you could always try upgrading your card to a "low interest rate option".

Most of the Big 5 banks have visa's with a "low rate options". Usually its a $20/yr fee with an interest rate of around 12-16%.

Or you could try calling the credit card companies and ask them to lower your interest rate... Sometimes if they see that your having trouble, they'll help you lower the interest rate under the condition that you don't use the cards!
I believe the principal of that is they figure they better get as much back as they can before someone digs a deeper hole for themselves, and possibly go bankrupt (then they get hardly anything).

[angelic_fate]

Thanks for your reply.

I will call them up and see what they can do with my interest rate.

The CapitalOne Prime+0.9% credit card is a wicked deal though. However, at this point in time, I don't have the credit history for it (no fulltime job, too much credit).

Should I cancel my credit cards then apply for the CapitalOne when I graduate and have a stable career?

[angel_wing0]

who pays for your tution?!

if i were u, i would ask my parents to pay it back for now...and write an IOU that u would pay them back...whenever.

[bembem]

Not to be a downer, but unless you are able to get help from your parents or family, your outlook is bleak.

If you miss any payments, or do not pay it off in full, you'll bear the full interest from day 1. It is imperative to keep the 0% balance transfers in good standing, and to pay it off in full before it is due.

"As a student (yes, I'm curious as to how they managed to give me so much credit), I already have "too much" credit for what I make." Now is not the time for the blame game.

If you have any assets like a car, sell it.

PS: Please address this one question. On any of the 0% balance transfer credit cards. Have you EVER made a purchase with the Credit Card?

[VivienM]

I was thinking of a low interest LOC but with this much credit - nobody is willing to give me more. Should I wait till I graduate to apply again? Or should I be canceling credit cards to lower my credit - does that raise my chances to get approved for a LOC?

If you go to your bank and ask for a student LOC, and agree to reduce your limits on the credit cards, they miiiiiiiight be willing to do something.

But yeah, I agree with what was said above. $16K in credit card debt?!

[angel_wing0]

But yeah, I agree with what was said above. $16K in credit card debt?!

I have about $29k of credit in credit cards.


its actually 29k...16k is from 0% promo bt, which makes it even worst.

[VivienM]

its actually 29k...16k is from 0% promo bt, which makes it even worst.

I understood, perhaps incorrectly, that the OP meant $29K in available credit... not in actual debt.

If we're talking $29K in credit card debt @ 18.5-19.5% interest (hopefully none of this is on Sears/HBC/etc cards at 28%), then that's even more nuts.

[angel_wing0]

I understood, perhaps incorrectly, that the OP meant $29K in available credit... not in actual debt.

If we're talking $29K in credit card debt @ 18.5-19.5% interest (hopefully none of this is on Sears/HBC/etc cards at 28%), then that's even more nuts.

actually u might be right :eek: I m not sure myself now/

Yip, exactly what i meant :)

[IronMac]

Should I cancel my credit cards then apply for the CapitalOne when I graduate and have a stable career?


No. Try to read through some of the credit card threads...best to keep oldest cards.

[angelic_fate]

"As a student (yes, I'm curious as to how they managed to give me so much credit), I already have "too much" credit for what I make." Now is not the time for the blame game.

Um.. It was only a satirical observation. I'm not blaming anyone but myself for this mess.

For clarification: My credit limits total to 29k. My balance totals to 16k. I'm paying off the minimum every month till I graduate then throw as much money as I can into it as possible.

I'm going to call them up and ask for reduction in interest rates if possible.

I'm just wondering if canceling credit cards to lower my available credit will help in further credit applications (such as a LOC with a lower rate to save on interest)

[angel_wing0]

ask your parents to pay it off for u now...i think u need to get this monkey off your back asap.

[YYZFA]

ask your parents to pay it off for u now...i think u need to get this monkey off your back asap.

I would never pay off my child's $16 k credit card debt, nor would I ask my parents to do it for me. The best way for the OP to handle with this mess is to deal with it himself. He or she has the right idea about trying to get a lower interest rate. He or she will hopefully be able to avoid unnecessary spending and will be able to pay off more than the minimum each month.

[Drew_W]

I thought as a condition of these BT promos you had to pay off the balance before the promo ended, or else you'd retroactively pay the full interest rate from the day the BT was made.

[Frankie3s]

ask your parents to pay it off for u now...i think u need to get this monkey off your back asap.

I agree with this but think the OP might not want their parents to know about the debt. Put away your pride and ask. If they don't have the money and are willing to cosign a consolidation loan this would be another option.

[brunes]

I have about $29k of credit in credit cards.

I'm using about $16k for promotional 0% balance transfers. However, some financial distress had arisen and I can't pay for that $16k when the promotion is up. So I need to find a way to minimize my interest payments as 18-21% of credit card interest is a BAD thing.

As a student (yes, I'm curious as to how they managed to give me so much credit), I already have "too much" credit for what I make. I had part time jobs here and there, making as much payments as I could.

I do graduate in May of '09 and I am determined to get a decent job to wipe my debt situation clean.

I was thinking of a low interest LOC but with this much credit - nobody is willing to give me more. Should I wait till I graduate to apply again? Or should I be canceling credit cards to lower my credit - does that raise my chances to get approved for a LOC?

While it will suck to pay all the extra interest - unless you can get some money from your parents or elsewhere your best course of action is to, as of right now, *STOP* making big payments on the cards. Start paying the minmumn *ONLY*, and save as much money as you can, so that when the 0% BT runs out, you have a reserve of funds with which you can make the MIMUMUM PAYMENTS on the cards. Assuming you have money to do this you should be able to carry yourself through until May, which really is not that long, only 8 months.

Then you need to get a job ASAP - do not hold out for the "perfect job", get whatever job you can get as soon as you can and look for other jobs while you are working and paying down those cards.

The reason I say you should do things this way is the *LAST* thing you want to do is "try" to pay off the cards as fast as you can, even though you KNOW you don't have enough money, and have the cards be forced into recievership just before you graduate - your credit will be screwed for years. Much better to make the minimum payments, even though it is costing you in interest.

[Potsman]

Go see your local bank and make an appointment with a loan officer.

Explain your situation and try to arrange a LOC or a consolidation loan. Note keeping all your credit cards is not an option. Loan officers can jump through some land mines and bend the rules a little bit if you allow them to cancel your CC's. See if you can reduce to 1 CC with a lower limit ($2500) if they will permit that. It's a life changer, however it will probably get you out of your dilemma and leave you in a better position in the future.

[grant]

The OP is in school. Right now he's learning how to control his spending. The 20% interest rate on CCs = tuition.

Good luck, you're on track to graduate.

[licious]

if i were u, i would ask my parents to pay it back for now...and write an IOU that u would pay them back...whenever.

I'd do the same thing, but if I were the OP's parents, I would be reluctant to pay off 29k for someone who thought it would be a bright idea to rack up nearly 30k in credit card debt in the first place.

Maybe your parents can cosign on a line of credit instead (if they trust you enough). That may increase your chances of being approved.

[angel_wing0]

I agree with this but think the OP might not want their parents to know about the debt. Put away your pride and ask. If they don't have the money and are willing to cosign a consolidation loan this would be another option.

i wouldnt want to have a huge debt before and right after i grad as osap is probably bad enough. Like i said before, ask your parents to pay it back, then u pay your parents back in installments. They probably wont charge as much interest even if they dont let u off the hook. It's the op's choice anyway...

[YYZFA]

i wouldnt want to have a huge debt before and right after i grad as osap is probably bad enough. Like i said before, ask your parents to pay it back, then u pay your parents back in installments. They probably wont charge as much interest even if they dont let u off the hook. It's the op's choice anyway...

-1

Why should the OP's parents have to pay back this debt? $16,000 is a lot of money. They are not the ones who racked up this credit card debt, the OP did. It's the OP's responsibility, and he or she should deal with it themselves. That's what being an adult is about. If the parents pay off the OP's credit cards, he or she will have learned nothing about fiscal responsibility, and will more than likely repeat the same mistakes. Should the parents bail him or her out again?

[angel_wing0]

Should the parents bail him or her out again?


-1

The first time, yes. The second time, NO.

Nuff said.

You are entitled to your opinion, and I am entitled to mine. So stop forcing your ideas onto me. I dont care how u think (notice i never bother to quote what u said till now), and i dont think u should bother with me as well. Seriously...

[YYZFA]

-1

The first time, yes. The second time, NO.

Nuff said.

You are entitled to your opinion, and I am entitled to mine. So stop forcing your ideas onto me. I dont care how u think (notice i never bother to quote what u said till now), and i dont think u should bother with me as well. Seriously...

What the heck does this mean? Are you kicking me out of this topic? I'm not trying to force anything on you. I'm just trying to understand your point of view that the parents (who didn't rack up the charges) should be held responsible for them. If anything, you are trying to force your opinion on me, or at very least, silence my differing opinion. Also, I don't understand your point of quoting me. I'm not picking on you, and if you think I am, then I have no answer for you.

People disagree, and if you can't handle that, then maybe you're not ready to interact with other people, even on the internet. Not everyone is going to agree with you, and you need to be prepared to accept that without getting so defensive.

[angel_wing0]

Are you kicking me out of this topic?

No.


I'm not trying to force anything on you. I'm just trying to understand your point of view that the parents (who didn't rack up the charges) should be held responsible for them. If anything, you are trying to force your opinion on me, or at very least, silence my differing opinion. Also, I don't understand your point of quoting me. I'm not picking on you, and if you think I am, then I have no answer for you.

It's funny how are you saying that I am forcing my opinions on you while all your posts are focused on my quotes while basically none of mine did (except this one and the above) or even try to refer to your post.


People disagree, and if you can't handle that, then maybe you're not ready to interact with other people, even on the internet. Not everyone is going to agree with you, and you need to be prepared to accept that without getting so defensive.

Find someone else to disagree with. I am not the only one who supported that idea.

Noobs this days...

[YYZFA]

No.



It's funny how are you saying that I am forcing my opinions on you while all your posts are focused on my quotes while basically none of mine did (except this one and the above) or even try to refer to your post.



Find someone else to disagree with. I am not the only one who supported that idea.

Noobs this days...

Okay, I'll adjust my belief system to align with yours because you have close to 3000 posts.

[angel_wing0]

Okay, I'll adjust my belief system to align with yours because you have close to 3000 posts.

3000 posts is nothing compare to mahjong manaic :)

maybe i have taken this abit too seriously as well :D

[angelic_fate]

Thanks guys. I really appreciate your help.

I would never expect parents, relatives, friends, or ANYONE to help me pay for my debt. Ever. In fact, nobody even knows about this problem. I am fully responsible and would never expect anyone to "bail me out".

While it will suck to pay all the extra interest - unless you can get some money from your parents or elsewhere your best course of action is to, as of right now, *STOP* making big payments on the cards. Start paying the minmumn *ONLY*, and save as much money as you can, so that when the 0% BT runs out, you have a reserve of funds with which you can make the MIMUMUM PAYMENTS on the cards. Assuming you have money to do this you should be able to carry yourself through until May, which really is not that long, only 8 months.

Then you need to get a job ASAP - do not hold out for the "perfect job", get whatever job you can get as soon as you can and look for other jobs while you are working and paying down those cards.

The reason I say you should do things this way is the *LAST* thing you want to do is "try" to pay off the cards as fast as you can, even though you KNOW you don't have enough money, and have the cards be forced into recievership just before you graduate - your credit will be screwed for years. Much better to make the minimum payments, even though it is costing you in interest.

This is exactly what I'm going to do. I've only been making minimum payments simply because I want enough cash in the bank to CONTINUE making minimum payments. I don't want to miss ANY payments because I will be screwed if my credit goes to hell.

It's a life lesson, and I've learnt it for sure. I'll do my best to make sure it will never happen again, but right now I just need the best way out.

I'm doing my best in school, researching careers, workshops in interviewing, networking, resumes etc - so the moment I step out of convocation I will have a fulltime job.

Thanks again for the help!

[YYZFA]

Thanks guys. I really appreciate your help.

I would never expect parents, relatives, friends, or ANYONE to help me pay for my debt. Ever. In fact, nobody even knows about this problem. I am fully responsible and would never expect anyone to "bail me out".



This is exactly what I'm going to do. I've only been making minimum payments simply because I want enough cash in the bank to CONTINUE making minimum payments. I don't want to miss ANY payments because I will be screwed if my credit goes to hell.

It's a life lesson, and I've learnt it for sure. I'll do my best to make sure it will never happen again, but right now I just need the best way out.

I'm doing my best in school, researching careers, workshops in interviewing, networking, resumes etc - so the moment I step out of convocation I will have a fulltime job.

Thanks again for the help!

Good for you! Keep your eye on the goal and you'll achieve it. I've been in your exact situation, and I came out on top. One thing you might consider is keeping some kind of a "debt log". You record your monthly or biweekly goal, as well as long term goals, and then you try to achieve it. It works as a good motivator for me.

[freebrokerhelp]

Thanks for your reply.

I will call them up and see what they can do with my interest rate.

The CapitalOne Prime+0.9% credit card is a wicked deal though. However, at this point in time, I don't have the credit history for it (no fulltime job, too much credit).

Should I cancel my credit cards then apply for the CapitalOne when I graduate and have a stable career?


Don't cancel your card or lower the limit. Just keep paying the minimum payment until you graduate. If you are able to get a little money together try and pay your cards down to 75% of their limit. Even if you have to balance transfer one to another.
People try an pay one card off at a time so they end up with one card with a low balance and the rest maxed. By putting some distance between the limit and balance this will jump up your score so that in May 2009 you will have a good score.
Even if you pay your bill every month but are $1 over the limit it can lower your score by 90 points. Get a free copy of your report to see exactly what you have. They make mistakes all the time but people don't know about them until they go for credit and are turned down.

[Potsman]

Don't cancel your card or lower the limit. Just keep paying the minimum payment until you graduate. If you are able to get a little money together try and pay your cards down to 75% of their limit. Even if you have to balance transfer one to another.
People try an pay one card off at a time so they end up with one card with a low balance and the rest maxed. By putting some distance between the limit and balance this will jump up your score so that in May 2009 you will have a good score.
Even if you pay your bill every month but are $1 over the limit it can lower your score by 90 points. Get a free copy of your report to see exactly what you have. They make mistakes all the time but people don't know about them until they go for credit and are turned down.

I don't think this is an option for the OP as he/she indicated they were on a promotional 0% interest rate and it is now due. Usually, CC companies operate like your typical department store no payments for 6 months etc and the amount of interest due would be calculated from the start of the transfer if the balance was not paid off in full by the end of the promotional period and therefore, the OP would have a wopper of an interest bill.

[freebrokerhelp]

I don't think this is an option for the OP as he/she indicated they were on a promotional 0% interest rate and it is now due. Usually, CC companies operate like your typical department store no payments for 6 months etc and the amount of interest due would be calculated from the start of the transfer if the balance was not paid off in full by the end of the promotional period and therefore, the OP would have a wopper of an interest bill.

Yes, They should call it what it is. "Deferred Interest"

[jiepie]

Thanks guys. I really appreciate your help.

I would never expect parents, relatives, friends, or ANYONE to help me pay for my debt. Ever. In fact, nobody even knows about this problem. I am fully responsible and would never expect anyone to "bail me out".


It's a life lesson, and I've learnt it for sure. I'll do my best to make sure it will never happen again, but right now I just need the best way out.

I'm doing my best in school, researching careers, workshops in interviewing, networking, resumes etc - so the moment I step out of convocation I will have a full-time job.

Thanks again for the help!

Hi, your statement is contradicting with what you do. You said you wouldn't want to get any help from anyone, but you got help from the banks. What kind of f up logic is that? Borrowing money from your parents don't hurt anyone, but borrow from the bank hurt yourself. Your ego and lag of clarity blinds you.

Is the bank more attached to you than your parent? You are ungrateful to your parents. Your parents are closest people you can rely on. Do you know how upset they are if they find out you needed help but you wouldn't ask them? They would love to help you out.

You could ask your parents for money, interest free; and pay them back after you got a job a year later. final words: go borrow some money from your parent, write a contract that you will pay them back a year later. Does that make you feel better borrow money from your parent now?

[mgronqui]

Is it too late to point fingers? :lol: :twisted:

[freebrokerhelp]

Hi, your statement is contradicting with what you do. You said you wouldn't want to get any help from anyone, but you got help from the banks. What kind of f up logic is that? Borrowing money from your parents don't hurt anyone, but borrow from the bank hurt yourself. Your ego and lag of clarity blinds you.

Is the bank more attached to you than your parent? You are ungrateful to your parents. Your parents are closest people you can rely on. Do you know how upset they are if they find out you needed help but you wouldn't ask them? They would love to help you out.

You could ask your parents for money, interest free; and pay them back after you got a job a year later. final words: go borrow some money from your parent, write a contract that you will pay them back a year later. Does that make you feel better borrow money from your parent now?

The banks are in business to lend money that is why they exist, but at a cost. They aren't there to "help" but to make a profit so it is completely different borrowing from them than your parents.
In real life not everyone has parents who are in the position to help. Just as you took steps to get into debt you need to take steps to get out which are costly. Even if your parents are in the position to help that can sometimes be a cost too. "I told you so" is never helpful!