Feb
I owe about 7500 $ I am pretty young I’m 21. This is all credit card bills. I need to figure out a way to get rid of this debt and not let it spiral out more! Can you recommend ways that I have the ability to reduce this debt faster or with lower interest rates????
I know I should have been careful with my money but I wasnt. I make about 800 dollars a month. about 150 for bills so that leaves 650 for debt.
Answer:
I would start by first getting a copy of your credit report. To make sure you have all your debts in order and you know how has the original debt. For example, if a debt has been charged off for a while it is possible the original creditor has assigned it to a collection bureau or a collection firm has bought the debt.
(Collection Bureau - Bureau that’s working on behalf of the original creditor / Collection Firm - A firm that buy debt and are the owner's of the contract you made with the original creditor)
Once you have your credit report call the creditors or collection agencies and get your balance from them. If the debt has been outstanding for some time you might have increase a significant amount of interest on your balance. Before you get off the phone ask if there’s a settlement offer (some collectors or agencies will offer a reduction for less then what you owe but try to do this close to the end of the month since they are more lenient and trying to meet their goals)
Then begin off the the highest debt or the one where you believe they’ll pursue legally. Be cautious when speaking with a collector and try not to promise to pay something you can't.
Be patient your credit will not improve overnight! Take your time!
Answer:
If you can allocate $650 a month towards a $7500 credit card debt you should be able to get this paid off within a year or two…
You could call your credit card co. and ask them to lower your interest rate for a set time with the promise of making higher payments to get the balance down faster. It never hurts to try.
Answer:
You’ll have to get a 2nd job and apply all that money to the debt. Or just keep making minimum payments until your life changes. it always changes..