Comments on: We’re Those Stupid Kids

By: Older

Older — Thu, 03 Sep 2009 16:43:25 +0000

Lighthouse Credit. They deal with creditors and get you a better pay-off deal. They are on-line. No help with student loans, alas.

By: Superla

Superla — Thu, 03 Sep 2009 16:30:56 +0000

I definitely relate. I owe as ass load in student loans, too.

On the credit cards: We were in horrible debt for a while because I lost my job after our first daughter was born, so we were paying our groceries, rent, everything, with credit cards. It’s awful, and I feel for you. I transferred all of our balances to a card with a temporary low interest rate on balance transfers, and then paid like crazy at the expense of other luxuries like food and heat. We eventually got through it, but it was rough.

I’m wishing you the best of luck.

By: Antigone

Antigone — Thu, 03 Sep 2009 15:18:23 +0000

Buttercup-

My husband spent an hour arguing with them on the phone yesterday, and got his rate reduced from 28% to 17% (which is still ridiculous, but a little more manageable). I think the key phrases were getting them to admit that they actually wanted him to pay down the principle (which is probably a lie, but people are weirdly bound by what they say sometimes), pointing out that jacking up the rate is going to KEEP him from being able to pay it down, and mentioning the “B” word (bankruptcy). Then, he also mentioned he can’t wait until November (when the credit card bill comes into effect). Also, make sure that you get a financial officer, not a peon.

By: buttercup

buttercup — Thu, 03 Sep 2009 14:37:59 +0000

I just had a company randomly jack my rate to 34.99% because I was late on two payments. I’ll never get out from under that one. I’m in the process of paying off all my credit and closing all the accounts because I just can’t afford the interest rates. Once mine are done, we’ll work on husband’s, and maybe someday we can get the only bathroom in our house fixed so the tile isn’t falling off the walls any more.

By: delagar

delagar — Wed, 02 Sep 2009 22:45:24 +0000

If the credit card debt is only six thousand dollars, look into those folks that make deals for you. Is the rest all student loans? B/c yeah, no bankruptcy on that. But often the debt management people can cut deals for you. It’s worth a phone call.

By: Antigone

Antigone — Wed, 02 Sep 2009 22:20:23 +0000

Yeah, the funny thing about Chapter 13- you can’t declare it because of student loans. Special, isn’t it?

By: missjulied

missjulied — Wed, 02 Sep 2009 18:26:27 +0000

$200,000 in debt? Are you considering Chapter 13 bankruptcy at all? I know I sure would.

By: Been there

Been there — Wed, 02 Sep 2009 18:00:14 +0000

Pay off the credit card faster than minimum, even if you have to camp in your parents’ back garden in order to afford to live. Otherwise your children will doing it…the ‘looming back whole’ is no illusion – that debt is growing faster than your payments against it.

Mine got into arrears on his under different, but equally unavoidable and pointless circumstances – I eventually cracked and sold things, but should’ve done it sooner & paid less.

Credit cards are brilliant tools for extensions at the end of the month (over here in the UK, anyway, as interest can only be charged after the amount has appeared on a monthly paper statement) – but only when they can be paid off in full, every month, without fail.

Oh and (again, in the UK, anyway) good for major purchases, as the consumer protection is slightly better

The Rules:

Pay off in full every month
If you REALLY can’t pay off in full, transfer to a card with a 0% ‘special offer’
Never spend on a card with an existing overdue debt under rule 2
Never EVER use a credit card cheque. Burn them (and transfer) if they come in the post.
Never withdraw money from an ATM on a credit card