Credit card consolidation?

[Daniel@R2R Verified Admin]

We were in CC trouble a few years back due to salary cuts, and these guys were able to help us bring it under control and get out of debt. I highly recommend talking to them to come up with a plan to bring your debt under control: http://www.credability.org/

 

[NVTE]

I recommend do financial checkup to find out the root of problems.
Rule of 72
Use Debt Roll Up stragetries.
I quoted from a friend "Live below your mean and buy what you need not what you want."
Do cc freeze credit line. Not cancel it.
Good luck.

 

[ReeferMaddness843]

For a mortgage, this was and is my plan when I buy a house next year. To make bi weekly payments on the mortgage. There are 26 bi-weeks in a year making a total of 13 months worth of payments. Which would end up being one extra payment on the principle only a year. Stack on one more extra monthly payment a year as well in a month with a "free paycheck". The biweekly method can knock about 4 years worth of payments off your mortgage. Add in the second full month towards the principle only and that term of the loan drops even further leading to an exponentially quicker payoff time than the term of the loan. The longer the loan is paid out the more money the bank makes on interest. The same as minimal payments on a credit card never seeming to be paid down.

 

[Ineedhelp]

Dave has many merits but also is very misguided and closed minded on several financial tools. It has been said of Dave that he is "the stupid person's financial adviser" - as rude and blunt as that is, the truth is that a financially astute person can leverage debt to grow wealth successfully and can become exorbidently wealthy, whereas many of Dave's teachings will keep you from moving backwards as fast but as far as growing net estate values or maximizing them there's an expensive opportunity cost to his methods.

Of course, if you're not a finance nerd or astute with finance and investing, his methods are generally good moves and even some are otherwise, such as his propensity to suggest not buying things on credit you can't pay off that month.

I mainly ment only to follow him when it come to cc debt and the snowball, leasing cars and things of that nature. Some one who is struggling with debt but rides in a 40k car with payments doesn't make a a lot of sense but I do agree once you get things in order some his investment guidance can really hold someone back

 

[Diesel]

IMO, debt is stupid.
What I don't get is you have mortgage and good credit and yet you're at 24% :eek:
I had the best lesson of my life when I was 12 years old and had a job as bringing newspapers around at 5 in the morning and 4 in the evening everyday.
A wise man told me now that you have a salary I will tell you one thing.............. you can't spend $2 if you just make $1, that man was my Dad and I miss him.
That said I never had debt on CC in my whole life, other than my house that I paid off in 10 years and company trucks which from the 5 four are paid off which is a bad thing.
Move your CC to lower interest CC and cut off the luxury of dining out, spending money on hobby's, date nights, maybe getting rid of a high $$$ car an drive a used for a while or better yet get a other job and use that money only to pay off your debt.
I know many times ppl don't want to hear that but it's you who got you in trouble (if this is a medical debt than that's different).

 

[4FordFamily]

For a mortgage, this was and is my plan when I buy a house next year. To make bi weekly payments on the mortgage. There are 26 bi-weeks in a year making a total of 13 months worth of payments. Which would end up being one extra payment on the principle only a year. Stack on one more extra monthly payment a year as well in a month with a "free paycheck". The biweekly method can knock about 4 years worth of payments off your mortgage. Add in the second full month towards the principle only and that term of the loan drops even further leading to an exponentially quicker payoff time than the term of the loan. The longer the loan is paid out the more money the bank makes on interest. The same as minimal payments on a credit card never seeming to be paid down.

I agree with this but if that money could be better spent on things earning a higher return than your mortgage rate (and you will actually spend it on that) then a case can be made that not utilizing your home like any other asset is foolish.

Just a different viewpoint, there isn't a right or wrong answer, it just depends on your financial acumen and comfort level.

 

[4FordFamily]

I have a mortgage already I just dont like the 24% interest. It just feels like the balances never get paid down

If you make minimum payments it takes about 20 years. The average American takes 30-40 years to pay off a credit card balance over 10k. This is because virtually none of your payment goes to principle and because they spend more back on the card. Banks and cc companies get rich!

 

[ReeferMaddness843]

I can definitely see that point as well. Great thought!