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posted May 7, 1996
(posted May 7, 1996) I am a college student. I have made the mistake of charging up a LOT of money on credit cards. My question is, should I try and consolidate all of the six credit cards on to one, or should I just continue making the minimum payment on each of them? The worst part about this is that I never have any money, because I am always paying a bill! I haven't used the cards in 5 months, and have never been late on a payment. What should I do?
Tripod: You're doing amazingly well already. Not using those cards for five months is a real achievement! Patiently paying them off is another. If you can take advantage of new cards that have special-offer low interest rates, you might try to transfer a balance onto them; when the special offer period ends, transfer onto another special-offer card. Hang in there.
Jephtha: You should be proud of yourself for your diligence in stopping your spending. I too have massive credut card debt, massive to the tune of $5000 and I am only a junior in college. I am so overwhelmed that I feel like not paying anything -- would it matter I'll already have a bad credit report until the day I die? But anyways, I hope this makes you fel better. Keep up the good work!
willo: If you can make $10 over the limit it will make a big difference in how long it takes to pay off the debt.
KatCam: You are on the RIGHT track! Once you get out of the charging habit, the easier it is to pay it off! I told myself that if I didn't have anything to show for what I charged, I probably didn't need it. THAT is what saved ME. No more dinners and bar tabs on the card! Then I called the company and cancelled my card. It hurt, but HAD to be done..I made mininum plus $10 payments. The Card company will CONVINCE you to keep your card, but DON'T give in!! CANCEL!! :) Keep regular payments and add as much extra as you are able...it'll go down. Good Luck and Don't GIVE in!!!
elyza: I was in your situation just a year and a half ago! I overused my college credit cards and found myself in a hole the size of the Grand Canyon. Here is my best advice on how I got out of it. Always always always pay more than the minimum because that way you're actually denting your debt and not just paying off the interest. Then try to find a cheaper interest rate either by switching to a low interest card or going to a bank and getting a low interest loan. I used the bank route and found that I could get a lower interest rate on my total debt. It's also much easier to pay one amount each month than deal with a multiple of blood sucking credit card companies. Good Luck!
kimmy: Hi. I too made that mistake towards the end of university. I paid the minimum payments and found I was getting nowhere. I decided to try and get a bank loan at a lower interest rate to pay them off, but all the banks insisted on cutting up the credit cards, which I wasn't willing to do, cause I don't have any other emergency funds to fall back on. So, I just kept looking and finally found a bank willing to help me (with a co-signer) and now I am paying off the bank loan at almost half the interest rate. It's helped a lot, and the experience was torture enough that I don't think I'll ever use my credit cards that recklessly again! Don't give up! Good luck.
GolfGizmo: Go out and purchase one way first class airline tickets to a South Seas paradise, buy a bunch of South Seas type clothing, get a kewl mtn bike to take with you, a good 35mm camera, some fishing equipment for deep sea fishing, max out the rest of the cards on cash, and leave this crapo american culture behind forever. Take it from someone who did it.
BruceL: Here's how I solved the same problem. Instead of giving interest to a bank or the credit card company give it to a friend or relative. My grandfather was sick of the low rates on CD's and savings accounts so we made a deal. He loaned me the money to pay off the debt and I paid him back with interest. The fun part is I didn't report interest expense so grandpa didn't have to report interest income to the IRS. However, my grandfather made it tough on me. Instead of paying him principal and interest every month I just paid interest and I had to pay him the entire principal at the end of three years. Talk about learning how to save. I learned of the wonders of compound interest and mutual funds. I paid my grandfather the $10,000 back at the end of three years. When I looked at the total of interest and principal I paid my grandfather less the interest I earned my effective interest rate was less than 4%. Talk to a family member and tell them your problem. My grandfather understood how it can happen.
Tantivy: Ahhh, my friend, many of us have found ourselves in these very shoes and lived to tell about it... First, you must realize that credit of any kind is a trap, a dependency, a submission to power. Owing money to a large corporate entity is one way to sleep with the enemy. While cozying up with the big bad guys is unavoidable unless you want to live like the Unabomber, you must choose the conditions and engage only in the compromises that benefit you most. The sooner you wean yourself from Citibank's tit, the sooner you will grow up and make it on your own...you are a citizen, and, more importantly, a consumer! Be fickle, be unpredictable, be trendy, and these commercial behemoths will grovel and whimper at your feet in their attempts to market to you and your demographic. Be strong, my friend...free yourself any way you can, and join the Counterforce.
JSW: I am two years out of university (just to prove this is not a college-specific situation). I am still using my trusty ole card that was issued to me as a student, along with its student rate. I finally called the credit card company, made nice about how much I appreciate their services and how it is to be a long-time consumer ... I mean customer ... and asked, with sugar on top, if they could lower my interest rate. BOOM! the thing was done, they cut it in *half* for six months (renewable with a simple phone call), and I can now make minimum payments *and* pay off some of the actual principal at the same time. Give it a try.
Jorgy: Keep up the good work and don't get a bad attitude like GolfGizmo, who seems to enjoy ripping people off. If you can mangage money and credit wisely, it can be a very valuable lifelong asset. If you don't it becomes a lifelong headache. So hang in there, you charged it and now it's time to pay for it. Paying for it is only a short term problem. Not paying, is a long term problem. Tighten the belt. Good Luck.
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