Good Row G Posted April 17, 2012 Report Share Posted April 17, 2012 My husband and I were skating by making payments on a large credit card balance, expecting life to settle down and his business to take off so that we could pay more. Which they have. But just when I was looking forward to making some progress, we got hit with a monster tax bill. Ouch.So, we've manned up, are doing what we need to, and one thing we've got to consider are the credit card debt assistance programs. We can make our payments, but they're a lot, and lowering the interest would be a big help. Not necessarily at the cost of a hit to our credit score, or getting into anything shady. I'm very suspicious.Anyone have a suggestion? Once and future ranger. Link to comment
Loren Wade Posted April 17, 2012 Report Share Posted April 17, 2012 This may not be what you want to hear but have you looked at alternatives to these programs? Financially, they're not usually a smart decision. I highly suggest ready The Total Money Makeover. It changed my life financially and discusses this topic. I'd even send you my copy at no charge if you'd at least check it out. lobro's a druid? twitter | fb Link to comment
Good Row G Posted April 17, 2012 Author Report Share Posted April 17, 2012 Thanks, Loren. I've long suspected the debt reduction / management / consolidation / reduction schemes were bad news and steered clear. But staring down the barrel, I thought I needed to research all my options. Just put a hold on the TMM at my library and will pick it up tomorrow. Hadn't wanted to get into a self-help book, but maybe that's exactly what I need. Hubby and I are pretty good, but not good enough that we couldn't use a financial life change instead of insanely hoping the same behavior will turn things around eventually. Thanks for the recommendation! Once and future ranger. Link to comment
Loren Wade Posted April 17, 2012 Report Share Posted April 17, 2012 Fantastic. My pleasure. Let me know if you want my copy. It's no trouble at all. There's a lot of knowledgable people here on the subject also. All you have to do is ask. lobro's a druid? twitter | fb Link to comment
Fogo Posted April 17, 2012 Report Share Posted April 17, 2012 +1 on Total Money Makeover. My family has been struggling w/ debt for a few years now, and after reading that book, we made a few changes and finally started making some progress. We won't be debt-free (other than the mortgage) this year, but should be next year. Nice to finally see an end in sight. Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. Fitocracy | About.me Fogo STR: 6 | DEX: 5.25 | STA: 7.25 | CON: 4 | WIS: 3.75 | CHA: 4.25 Fogo's <CREATIVE_CHALLENGE_NAME> Challenge [sIGPIC][/sIGPIC] Link to comment
HorrorGeek Posted April 17, 2012 Report Share Posted April 17, 2012 A lot of the times you can call the credit card companies and lay out your situation and they will work with you. They prefer some money to no money. Ask them for a temporary payment plan where you can lower the monthly payment and the interest for just a bit while you get caught up. [sIGPIC][/sIGPIC]The Horror Geek Half Dwarf Adventurer! My Challenge Thread is here. I have zombies to outrun! Failure is not an option! Link to comment
Loren Wade Posted April 17, 2012 Report Share Posted April 17, 2012 A lot of the times you can call the credit card companies and lay out your situation and they will work with you. They prefer some money to no money. Ask them for a temporary payment plan where you can lower the monthly payment and the interest for just a bit while you get caught up.Yep, definitely this. Ramsey talks about this in the book as well. lobro's a druid? twitter | fb Link to comment
spezzy Posted April 18, 2012 Report Share Posted April 18, 2012 Not a Ramsey fan at all.Also not a fan of any of those assistance programs.I paid off 20k+ (I think the total was over 22k, actually, I need to do the numbers) last year by:-asking for lower interest rates-moving money around to the lowest interest cards possible-buying everything on credit cards and using points to purchase items i need-Putting EVERY penny I can towards paying off debt, leaving no extra spending money in my bank account-Never carrying cash-making a budget and sticking to it (a TIGHT budget)-selling things I didn't need-picking up some freelance work and putting 100% of the extra money towards billsI know it gets overwhelming, and I was in that hole of that for a very long time, but it's really that simple. I'm no longer an active member here. Please keep in touch: Instagram - Facebook - Forum Friends Discord - email “There's only one rule that I know of, babies—God damn it, you've got to be kind.” Link to comment
Silentplanet Posted April 18, 2012 Report Share Posted April 18, 2012 The less assistance you get with your finance the better. Everything costs money. Investing with informed and educated choices (not advice) and saving are the safe choices. The only good credit card is a dead one =P Sent from my Galaxy Nexus using Tapatalk 2 Link to comment
spezzy Posted April 18, 2012 Report Share Posted April 18, 2012 The only good credit card is a dead one =P I don't really believe that. I love my credit cards. I get a lot of points and rewards from using them.Used correctly, they're awesome. I'm no longer an active member here. Please keep in touch: Instagram - Facebook - Forum Friends Discord - email “There's only one rule that I know of, babies—God damn it, you've got to be kind.” Link to comment
Maledictus Posted April 18, 2012 Report Share Posted April 18, 2012 Used correctly, they're awesome.Then you're not their ideal customer. They rely on people signing up, not knowing how to use them correctly and paying regular monthly charges even when they no longer use them. A lot like certain gyms "Everyone thinks of changing the world, but no one thinks of changing himself" -- TolstoyNot sure if it was buzz or woody that said it though. Spartan double trifecta progess: 100%100% Tough Mudder "10 x Legionnaire": 100.0%100.0% "Run ALL the things or die tryin'" 110%110% fitocracy Ogre Magi Lvl 16 Ranger STR: 38|DEX: 58|STA: 59|baCON: 34|WIS: 30|CHA: 30 Previously Completed: Spartan Trifecta, Enough TM Headbands to make a ski mask Link to comment
Fogo Posted April 18, 2012 Report Share Posted April 18, 2012 Then you're not their ideal customer. They rely on people signing up, not knowing how to use them correctly and paying regular monthly charges even when they no longer use them. A lot like certain gyms That just depends on who's definition of correctly you want to use. Someone like spezzy, or the banks. We've got a card that we use exclusively for the points it earns us. We pay that card off each month, and in turn, we usually earn enough points each year to take the family off to Disneyland. Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. Fitocracy | About.me Fogo STR: 6 | DEX: 5.25 | STA: 7.25 | CON: 4 | WIS: 3.75 | CHA: 4.25 Fogo's <CREATIVE_CHALLENGE_NAME> Challenge [sIGPIC][/sIGPIC] Link to comment
Loren Wade Posted April 18, 2012 Report Share Posted April 18, 2012 Not a Ramsey fan at all.Also not a fan of any of those assistance programs.I paid off 20k+ (I think the total was over 22k, actually, I need to do the numbers) last year by:-asking for lower interest rates-moving money around to the lowest interest cards possible-buying everything on credit cards and using points to purchase items i need-Putting EVERY penny I can towards paying off debt, leaving no extra spending money in my bank account-Never carrying cash-making a budget and sticking to it (a TIGHT budget)-selling things I didn't need-picking up some freelance work and putting 100% of the extra money towards billsI know it gets overwhelming, and I was in that hole of that for a very long time, but it's really that simple.Yep, totally agree. Ironically, spezzy, that's a lot like what Ramsey says to do. lobro's a druid? twitter | fb Link to comment
spezzy Posted April 18, 2012 Report Share Posted April 18, 2012 Yep, totally agree. Ironically, spezzy, that's a lot like what Ramsey says to do.I'm not a Ramsey fan because of the religion aspect of it all.I've never read his book, but in reality - its probably close to what he says to do because in order to pay off debt, really the key is to spend less and take in more. I'm no longer an active member here. Please keep in touch: Instagram - Facebook - Forum Friends Discord - email “There's only one rule that I know of, babies—God damn it, you've got to be kind.” Link to comment
Loren Wade Posted April 18, 2012 Report Share Posted April 18, 2012 I'm not a Ramsey fan because of the religion aspect of it all.I've never read his book, but in reality - its probably close to what he says to do because in order to pay off debt, really the key is to spend less and take in more. I can understand that. And yep. Ramsey just lays it put in steps for people. lobro's a druid? twitter | fb Link to comment
Silentplanet Posted April 18, 2012 Report Share Posted April 18, 2012 That's true you can exploit credit cards a little bit =) but if you're keeping a balance on that card at all you are wasting money. They're horrible things.. banks are horrible things in general. They make a heap of money out of people misusing credit cards (or using them "correctly" I guess.. since the real goal of a credit card is for the bank to make money) =) Link to comment
msuroo Posted April 18, 2012 Report Share Posted April 18, 2012 Then you're not their ideal customer. They rely on people signing up, not knowing how to use them correctly and paying regular monthly charges even when they no longer use them. A lot like certain gyms This isn't really true either. I've never paid a penny of credit card interest, but Amex is still very happy to have me as a customer. I generate a lot of merchant fees for them . Challenge thread Link to comment
msuroo Posted April 18, 2012 Report Share Posted April 18, 2012 ...if you're keeping a balance on that card at all you are wasting money.This is true.They're horrible things.. banks are horrible things in general.This is just ignorant "occupy" rhetoric. Banks play a crucial role in any developed society. Good luck buying your first house without a bank loan. Yes, they borrow money at low rates (by taking in deposits or issuing debt/equity securities) then lend it out at higher rates, but banks are profit seeking entities. I mean, your grocer buys meat from the butcher at $1 per pound at sells it to you for $4, but no one thinks grocers are "horrible things in general."Yes, certain banks have engaged in predatory practices (processing debits before credits, for example), but this is true of companies in any industry. That is not the same as "banks are evil." Challenge thread Link to comment
The Tin Man Posted April 18, 2012 Report Share Posted April 18, 2012 Came here to say Dave Ramsey, LW beat me to it. I agree with Spezzy that I'm not big on the religion aspect of his writing/show but I can roll with it pretty well. While I don't follow his plan I do get inspiration from it. As for card/no card, I pay my credit card off weekly. I'm a little odd though... The Tin Man: Cyborg Ranger Tin Man's Out of Date Epic Quest I am what I do. Link to comment
The Tin Man Posted April 18, 2012 Report Share Posted April 18, 2012 This is just ignorant "occupy" rhetoric. Banks play a crucial role in any developed society. Good luck buying your first house without a bank loan. Yes, they borrow money at low rates (by taking in deposits or issuing debt/equity securities) then lend it out at higher rates, but banks are profit seeking entities. I mean, your grocer buys meat from the butcher at $1 per pound at sells it to you for $4, but no one thinks grocers are "horrible things in general."Yes, certain banks have engaged in predatory practices (processing debits before credits, for example), but this is true of companies in any industry. That is not the same as "banks are evil."And agreed. Some banks are horrible. That does not mean that banks in general or as a concept are horrible. The Tin Man: Cyborg Ranger Tin Man's Out of Date Epic Quest I am what I do. Link to comment
Good Row G Posted April 18, 2012 Author Report Share Posted April 18, 2012 really the key is to spend less and take in more. Yup.Thanks for the support and guidance, guys. I am facing our situation and making the best choices I can, but honestly I'm grieving. I had my heart and soul set on paying off credit cards and having a financial buffer. Now there's more money coming in, but instead of security, that'll just go to digging out of the hole. Which is how it should be. But I didn't anticipate the huge tax.My dad was such a sweetheart, and told me that my desire to save money was absolutely out of the question right now. Right now is about survival. Treading water until I get a higher paying job, or the business grows. Baby steps. Optimus prime and all.You'll know things are good when I switch my avatar to one of me in a NF t-shirt. When I can buy that, I'll be good. It'll happen, just patience, care and time.Thanks for the support. Once and future ranger. Link to comment
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