Credit Card Debt

[auburntigersfan]

Re: Credit Card Debt

That's the key. For me, the only reason to use a credit card is due to ease of use...it's easier to pay with a card than carry large sums of cash around.

Why not use a debit card? That's what I was always told, never get credit cards because you can have a debit card connected to a checking account and that way you cannot get into debt.

[Gotmadskillzson]

Re: Credit Card Debt

The thing about debit cards, is that certain cultures and communites simply don't trust the banking system what so ever. I know a lot of people that are in their 40s and 50s and 60s and NEVER had a checking account in their life.

They pay all of their bills by money order.

Far as getting rid of cable goes, HELL NO. I know for me, where I live, in northwest indiana, you can't get a damn thing on regular attenea, even with the converter box.

[jnofx]

Re: Credit Card Debt

The thing about debit cards, is that certain cultures and communites simply don't trust the banking system what so ever. I know a lot of people that are in their 40s and 50s and 60s and NEVER had a checking account in their life.

They pay all of their bills by money order.

I think the only reason for this is if people are after you and your money, I.E; Child support payments or something that you're running from or something like that.

[Gotmadskillzson]

Re: Credit Card Debt

Child support payments will come out of your pay check regardless if you have a bank account or not. If you working and getting a pay check, you in the feds system and they will find you sooner or later.

But anyway........it really comes from a lack of education and a lot of misinformation that has been spread in certain communites for the past 2 decades. Instead of them seeing for themselves, they stilll going by what somebody else said 22 years ago.

Heck you can go to any walmart on thursdays and fridays and you willl see a LONG line of people their cashing their pay checks because they don't have a bank account.

Kind of messed up, I worked at walmart and would see people pull out 5 or 6 credit cards, but they don't own not ONE debit card.

[J.R. Locke]

Re: Credit Card Debt

Heck you can go to any walmart on thursdays and fridays and you willl see a LONG line of people their cashing their pay checks because they don't have a bank account.

Actually bank accounts are not really useful for those people living paycheck to paycheck. Banks make their money on fees. In the old days banks used to make money on bigger accounts. Now they make money nickel and diming these very people. The best thing to do is go to a credit union or some type of bank that limits their fees to a reasonable amount (not $40).

As far as getting out of credit card debt. The best thing to do is call the companies and try to lower the interest rate. Get on a payment plan. Call and be as persistent as they are collecting debt. Call everyday and let them know when you will pay and continue to ask for a lower rate or a hold on any fees.

The best thing to do is be active.

[jnofx]

Re: Credit Card Debt

Actually bank accounts are not really useful for those people living paycheck to paycheck. Banks make their money on fees. In the old days banks used to make money on bigger accounts. Now they make money nickel and diming these very people. The best thing to do is go to a credit union or some type of bank that limits their fees to a reasonable amount (not $40).

This is so true. I've gotten my *** handed to me on fees. I once put a $1.00 McDonalds double cheeseburger on my debit card, and got charged for a $32.00 overdraft fee, basically because an ATM I had checked my balance at lied to me.

$33.00 McDonalds Burger from the Dollar Menu. True story.

[bamalam]

Re: Credit Card Debt

mighta been mentioned, didnt read thru all these, but


DAVE RAMSEY

would be worth listening to.

[mjb2124]

Re: Credit Card Debt

Why not use a debit card? That's what I was always told, never get credit cards because you can have a debit card connected to a checking account and that way you cannot get into debt.

I get cash back on my credit card. If I buy a $2000 purchase (say an HDTV), I get cash back from my credit card....don't get that on my debit card. Any small purchase I make, I do use my debit card though.

Credit cards aren't bad...the abuse of them is what makes them bad. Some people simply aren't financially responsible enough to handle a CC. They see that it has a $10,000 limit and believe they have an extra 10K laying around. Not true at all.

[FlyingFinn]

Re: Credit Card Debt

Why not use a debit card? That's what I was always told, never get credit cards because you can have a debit card connected to a checking account and that way you cannot get into debt.

Because if something goes wrong and you are over charged or your card numbers are stolen and used, all the cash isn't coming out of your bank account.

[DaveDQ]

Re: Credit Card Debt

You are going to get a lot of advice, some good some bad. Obviously you posting about this means you are deeply concerned.

Speaking on my own experience. The only thing that will get you out of the slump is to do without the things that aren't essential. It takes discipline. In fact, I still struggle with conquering it. Define what is necessity, meet those needs and then pay on your debts.

The good part in all of this is you have an opportunity to reverse a negative in your life, and if you stick at it and make it happen, you will develop a genuine sense of accomplishment that none of the silly things you purchase could ever achieve.

[Unoriginal Name]

Re: Credit Card Debt

Between being jobless for an extended time and moving cross country back to my hometown my wife and I racked up probably close to $9000 in credit card debt.

After I found work I got a great credit card offer from Capital One I was able to balance transfer all our credit card debt to a new Capital One card at a rate of 2.99% for one year. After that year the rate lowered to 1.99% for the life of the balance. Because of this we were able to pay off our car a year early and except for my student loan we have been debt free since June 2009.

In our case we got lucky that I was able to get such a good credit card offer but the thing that really helped us was we sat down and worked out a budget and took the cards out of our wallets. We switched our lifestyle to only paying for things with cash or our debit card....we didn't have the money we didn't need the item. Now we occasionally use a credit card but that is only to keep our cards active and only if we have the money to cover the bill when it comes.

It takes some discipline and hard work to get there but it was a great feeling sending in the last car payment and the last credit card payment knowing that other than my education we own everything we have free and clear.

[WazzuRC]

Re: Credit Card Debt

Why not use a debit card? That's what I was always told, never get credit cards because you can have a debit card connected to a checking account and that way you cannot get into debt.

Credit cards help build credit as long as you pay them off every month. Once I finish paying off my last credit card in February, I'll routinely throw $200 worth of bills on it every month and pay it off at the end of the month. It'll boost my credit score for when I need a loan for a car, home, etc.

[matt8204]

Re: Credit Card Debt

Credit cards help build credit as long as you pay them off every month. Once I finish paying off my last credit card in February, I'll routinely throw $200 worth of bills on it every month and pay it off at the end of the month. It'll boost my credit score for when I need a loan for a car, home, etc.

Key point that you made. Credit cards themselves aren't bad if you handle them properly. Don't put anymore on them than you can pay off at the end of the month. It's the interest that will really bury you, not so much the initial purchases. I read somewhere that if you had $5,000 in cc debt and only made the minimum payment every month on a card that carried an average interest rate, it would take you like 50 years to pay it off.