Credit card debt, to the point

[goettling]

Thanks for so many reply's in the first post. We got off track and some judged others. That was not my point.

When I first posted I think I said 2k. Well I am down to one little thousand dollars of credit card debt. I can do it and so can you. Pay it off and build up that Fica.

Can we just stick to the point of cc debt and nothing else? Thanks for everyone's honesty. I have a car debt too, but just want to talk about cc debt and maybe start a challenge of how to pay that debt off.

What was your past experience and present, and what shape are you in now? How did you improve it or not? What are you goals now or how have your past goals helped you. Good or bad. Lets just try to give help and lift all of us up. That is all.


My first response was that I used my tax refund to pay it down. Now I am working to 200.00 a month out of my check to the goal. I have charged here and there since the last post, but I am paying for it.

[mysteriouspoet]

Thanks for so many reply's in the first post. We got off track and some judged others. That was not my point.

When I first posted I think I said 2k. Well I am down to one little thousand dollars of credit card debt. I can do it and so can you. Pay it off and build up that Fica.

Can we just stick to the point of cc debt and nothing else? Thanks for everyone's honesty. I have a car debt too, but just want to talk about cc debt and maybe start a challenge of how to pay that debt off.

What was your past experience and present, and what shape are you in now? How did you improve it or not? What are you goals now or how have your past goals helped you. Good or bad. Lets just try to give help and lift all of us up. That is all.


My first response was that I used my tax refund to pay it down. Now I am working to 200.00 a month out of my check to the goal. I have charged here and there since the last post, but I am paying for it.

I have 8 dollars in credit card debt, but lots more in other debt.

[goettling]

I have 8 dollars in credit card debt, but lots more in other debt.

I know I am tired but did you say 8 dollars in cc debt??? :yes:

[mysteriouspoet]

I know I am tired but did you say 8 dollars in cc debt??? :yes:

Yes.

[mysteriouspoet]

Ok fine. Maybe that's not debt. But I do owe eight dollars on it.

Again let me say I have about the same amount as you in other debt. About $1,000. And I don't have a car, a house, a wedding, or a pool.

And that isn't even counting my student loans...ack.

[/usr]

We got off track and some judged others.

This is VB.

[mysteriouspoet]

The best part are those helpful little links at the bottom for the people who are really in deep.

[goettling]

The best part are those helpful little links at the bottom for the people who are really in deep.

Glad you joined in on my post. Just looks like you and me are the only ones in debt. :yes: :cool:

[goettling]

This is VB.

And yes, but not the compost heap!

[mysteriouspoet]

Glad you joined in on my post. Just looks like you and me are the only ones in debt. :yes: :cool:

Some are just too proud to admit it.

[remilard]

I have had as much as 1200 in credit card debt, I have none now (no debts period sans student loans)

[xrodolfox]

I cut up my credit cards a long time ago. I have no CC debt at all.
I do, however, have a mortage, car payments (at 0% interest), and college loans for my wife and I to pay off...

[MsRuthieB]

Some are just too proud to admit it.

Or, like me, they've already gone through explaining or giving opinions in the other thread and just don't feel like posting the same old same old.

[bstutzma]

I have no credit card debt. We only buy what we can pay for, for our living expenses.

Student loans.... however....

I think some people would faint. I think you could buy a house in some states for less than our total student debt. Two people, 4 years at a private university, and then 3 years of law school..... you can do the math. Think of it this way... we have a 30 year repayment schedule. (Shudders.)

I swear, college is too expensive. And of course, being the hippies we are, my hubbie works to help the poor, so he barely makes enough to pay for the student loan payments, hehe. But I don't care. We're happy, healthy, live comfortably, and are in love. What else could we want? :-)

[Coney]

"And of course, being the hippies we are, my hubbie works to help the poor, so he barely makes enough to pay for the student loan payments, hehe. But I don't care. We're happy, healthy, live comfortably, and are in love. What else could we want? :-)"

That's awesome!:)




Saving your coins in jars is a good way to get extra $$ (you'd be surprised). We've got 4 coin jars--one for quarters, dimes, nickels, pennies-- and when they're full and we roll them it's a fat chunk of change that we put in the bank to pay for things.

Lately, we've been using the quarters for laundry...but the nickels, dimes and pennies are filling up.

Chip away at that credit card debt, everyone!

[sky73]

I already paid off $30,000 in student loans within 2 years of graduating from college. I have a cc to pay off and a car loan for the next 3 years.

[mysteriouspoet]

I already paid off $30,000 in student loans within 2 years of graduating from college. I have a cc to pay off and a car loan for the next 3 years.

I'm impressed.

[sky73]

I'm impressed.


Thanks. I couldn't have done it if I wasn't living at home and working 2 jobs. :)

[Elena99]

I've got a question for those who are more experienced in credit cards than I (which is probably a lot of you. >_>)

Until this past December, I rarely owed more than 600$ at any time in debt on my cc. I usually used it with the intention of paying it off within a month, and did so, because I am terrified of debt.

Now I'm in a situation where I have over 2000$ Canadian in debt on the card, and I keep trying to pay it off, but it's stubborn. I keep needing to use it, though I make an effort to do double the monthly minimum payment.

My cc company keeps putting up my limit, too. A few years ago, it was a modest $800. Then it went up to $1000 at my request. Since then, they've been periodically updating it. For this year, they've done it once in January, again around April, and now just today I noticed that it's up again. This is the fastest series of increases they've done, and I'm also using it more.

Any idea what's going on here? Is this a good sign, or has someone said "Aha! She's trapped! Let's keep giving her credit increases and trap her for life, now. Muwahaha."?

[dk_art]

"What was your past experience and present, and what shape are you in now?"
----------

I have one credit card with a $500 CND limit. I got it because I needed it to start ebay years ago. I won't be getting any other card as I don't like dept and see no point in accumulatin cards and more dept.

[MnVeggie]

...has someone said "Aha! She's trapped! Let's keep giving her credit increases and trap her for life, now. Muwahaha."?

Yes.

[Joe]

I've got a question for those who are more experienced in credit cards than I (which is probably a lot of you. >_>)

Until this past December, I rarely owed more than 600$ at any time in debt on my cc. I usually used it with the intention of paying it off within a month, and did so, because I am terrified of debt.

Now I'm in a situation where I have over 2000$ Canadian in debt on the card, and I keep trying to pay it off, but it's stubborn. I keep needing to use it, though I make an effort to do double the monthly payment.

I assume you mean "double the monthly minimum payment."

When you have a credit card, you basically have two (2) goals:

1) to keep your credit good, i.e., not to ruin your credit rating, and
2) to pay down or pay off any credit card debt.

Paying your monthly minimum payment is relevant to Goal # 1, but almost irrelevant to goal # 2. I've been told that if you just paid your minimum monthly payment, it would take something like 35 to 40 years to pay off credit card debt. Paying double this minimum monthly payment is probably only a little better as far as goal # 2 is concerned.



My cc company keeps putting up my limit, too. A few years ago, it was a modest $800. Then it went up to $1000 at my request. Since then, they've been periodically updating it. For this year, they've done it once in January, again around April, and now just today I noticed that it's up again. This is the fastest series of increases they've done, and I'm also using it more.

Any idea what's going on here? Is this a good sign, or has someone said "Aha! She's trapped! Let's keep giving her credit increases and trap her for life, now. Muwahaha."?

I don't think it is quite that diabolical. My own credit card company just raised my credit limit by 20 percent without my asking. I pay it off in full every month. So I don't know why they did that.

As far as Goal # 2 is concerned, you need to look at your credit card statement and divide it into three segments.

1) PB=Previous Balance or Old Principal, which ever term you prefer.
You mentioned a figure of 2000$ CDN, so let's assume that is the figure, for sake of discussion.
2) FC=Finance Charges or Interest, which ever term you prefer. In the US they have to give you an APR, Annual Percentage Rate, which is equal to the effective interest they are charging you on your loan. Any kind of "fees" or other charges, however described, are basically ways of charging you more interest. Let's assume the rate is 18 percent, which would translate to $30 per month on the $2,000 principal.
3) NC=New Charges or whatever additional charges you put on your credit card during the month. Let's assume these are $300.

Basically, you would need to pay NC +FC every month just to stay even. You would also need to pay something toward the paydown of your original principal. Let's say you could pay NC + FC+ X every month. This would mean you would take X/PB months to pay your debt down to zero. So, if you could pay $300 (NC) + $30 (FC) + $100 (X) = $430 total each month, it would take you 20 months to pay off your credit card debt.

[Elena99]

Thanks, Joe. And yes, I did mean minimum (went back and fixed it).

That's a really depressing figure, 20 months. I'll try to work out that equation to see how much I should be paying, and if it's at all possible.

[Rene]

mmm good thread.

I am in big trouble...a while back I got very ill and ended up on medical benefits which pay nothing let me tell you..so being as stubborn and as proud as I am I didn't tell any friends/family my problems...and used my credit card to pay for rent and grocerries...I have now maxed out my card (au$5k) !!! and am relying on charity food parcels (which btw are rarely veggie friendly!).

I have a temp job now, and am looking for full time work...but boy I am frightened about paying that sucker back! I honestly never thought I'd be in this position. :sick: :cry:

ETA :spew: because when I read back over the post that's what I wanted to do .

[Joe]

That's a really depressing figure, 20 months.

Well, but in an earlier post you were talking about being "trapped for life." A 20-month paydown period is a lot more optimistic scenario than "trapped for life."



I'll try to work out that equation to see how much I should be paying, and if it's at all possible.

Let me say one thing, which I think is relevant to just about everyone reading this forum, since you probably all have your own computers. Everyone who takes out any kind of loan or contracts any credit card debt should have an amortization schedule in the form of a computer spreadsheet. An amortization schedule is just a schedule of payments by which a loan can be paid off.



1 : to provide for the gradual extinguishment of (as a mortgage) usually by contribution to a sinking fund at the time of each periodic interest payment

http://www.m-w.com/cgi-bin/dictionary?book=Dictionary&va=amortizing

Yes, such schedules are far more typically used in mortgage situations, and credit card debt is more complicated than a mortgage. Still, such schedules can be used to give you a good approximate idea of the consequences of following one course of behavior vs. another, and should enable you to develop a plan to pay off the credit card debt.

I do have a mortgage amortization spreadsheet that I could upload here that is for a 30-year mortgage. Now, that might sound useless, but it's not. All you would have to do is to plug in your own numbers, and then see where they would take you. For example, if we followed the example above about FC + NC + $100, and you plugged in those numbers, you would see your principal go down to zero in about 20 months.

If you want, I can try to find the spreadsheet and upload it here. It is in the format of a Lotus 1-2-3 .WK4 spreadsheet, done on a PC. It can be imported into Excel on the PC easily. I'm not sure about other platforms, or other spreadsheet programs.