I figured that I was going to stop stressing about paying them off because our salary is not getting heigher any time soon.  In fact, I can barely afford the minimmun as it is.  I hope for better times and the ability to pay them off sooner.  So far, we have cut a lot of expenses. Soon we will be selling a truck and that $$$ will help pay one of them off.  DH is slow at getting rid of things.

Carmina

What I don't understand is that they took OUR money from the government to help out and yet they are asking us to pay even more obscene interest???!!!!  Obama said he was going to overhaul how they do business and the way they can jerk around like this, I don't see it happening.

Chase Bank is at the top of my list...they raised my rate to 29% because I was late twice in TEN years, and not even 30 days late either, just a day or two.  Blood suckers.  Then because of that B of A tried to do the same, I called them up and told them that if they didn't roll it back I would default...and I owe them a lot, so they agreed.  And I wasn't even ever late with them, they did it because of Chase.  That practice has never made any sense to me...it's like the water getting cut off because I'm late on the power! 

One thing a lot of people don't know is that if you are close to defaulting anyway, you can negotiate with the card company.  You have to close the account...but I got B of A down to 4.5%, a heck of a lot better than 24 or even 18%.  It's a big hunk of money every month that I can't really afford, but in 4 and 1/2 more years approx, I am OUT of credit card debt. 

What I don't understand is how so many people get so deep into cc debt in the first place. Absent unforeseen job loss or uninsured medical bills, how does that happen? Is it so hard for that many otherwise intelligent, educated people to deny themselves immediate gratification in a shopping mall?

Don't they realize that taking on debt means that future options will be more limited because of the debt?

Neither I nor DW understands this.

I use a credit card to paying for just about everything (and pay it off at the end of the month) so that I get a 1% cash dividend. I use a gas card for a 5% discount. I write a check for $600 (monthly food budget) to the credit card company AT THE BEGINNING OF THE MONTH and then whenever I charge something, I keep the receipt in an envelope with a running tally on the envelope of what remains of the $600. I do the same thing with the gas card writing a check for $150. When I get the bill, the check is already written - the receipts are discarded and I start all over again. Then every three months or so, i get a check for the cash dividends. I don't pay an annual fee, etc.

We are having trouble with opt-outs.  Home Depot went up on rates and offered an opt-out.  Cuz took it, and the next month, when the bill was received, balance due was shown as the full balance on the card.  He called HD and they gave him the regular monthly payment, which he paid by the due date.  Next bill--balance due was shown as the full amount minus most of the payment, but they charged a $32 late fee because the full balance of the note wasn't paid off. None of this was in the fine print of the opt-out.  He's vowed to call every month. 

He did pay off one card, and they still sent him an additional bill for the average daily balance of the full amount from the billing date to the due date.

So now our trashy deadbeat tenants we have to evict will have no luck at stealing credit card numbers.  All are opted out and cash is the new way and true way!

Walt34:

What I don't understand is how so many people get so deep into cc debt in the first place. Absent unforeseen job loss or uninsured medical bills, how does that happen? Is it so hard for that many otherwise intelligent, educated people to deny themselves immediate gratification in a shopping mall?

Don't they realize that taking on debt means that future options will be more limited because of the debt?

Neither I nor DW understands this.

 

Lots of people were never taught this - they were taught to use credit cards as a way of life.  I knew a guy in college who owed his mother $50 and didn't have it - but he got a preapproved Montgomery Wards card in the mail, so he went to the store, bought a new answering machine on the credit card for $80 and gave his mother the old one to pay off the $50 he owed her - and didn't understand why I told him I thought it was a stupid way to do it.  His mother thought it was a great solution, and that's who he learned his "money sense" from.  I know lots of other people with similar ideas (even though they are all educated professionals) because their parents never taught them about money, and now they're learning the hard way.  Advertising is designed to encourage this "enjoy now, pay later" attitude - and even more, rent-to-own businesses are set up to allow those without credit to buy things they can't afford at massive cost to the buyer and corresponding massive profit to the seller.  Until this attitude changes, people are going to continue to have the same problems.

Hi Everybody,

Credit cards are toxic when they get the better of us.  I speak from experience.  At one time, I had about 14 different credit, dept. store, and gas cards with a balance of several thousand dollars.  Now, I am debt free and I'm coaching people to avoid and get out of credit card debt.

I started a blog on this topic recently.  I invite you to go to http://saygoodbyetocreditcarddebtforever.blogspot.com

I'm also writing a book about it which I foresee being published next year.

Sincerely,

Joe 

    

 

That's wonderful, Joe.  After digging out of credit card debt, I now only use credit cards if I have to, or if there is a benefit.  I've learned to always pay the bill in full, and haven't had any interest charges in over five years.

Getting control over the credit cards is a huge boost to your credit score, financial bottom line and peace of mind. 

 

Thanks!  I agree completely.  I have found that even with a modest income, if people stay out of credit card debt, the dollar goes so much further.

The peace of mind is priceless! 

Medical bills created our credit card debt. Even with insurance, a child with psychological problems will cause big financial issues. Add in a family member who needs rehab (every trip is at least $5000) and you have problems. Not every one who has credit card debt is a shopaholic. Some of us have too many real emergencies.