| What to do about super high interest rate??? |
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Holocene
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| What to do about super high interest rate??? |
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I currently have about $11,500 in CC debt.
About $7500 on one card, and $4,000 on another; both at 29.9% interest.
I was up to 90 days late on payments at one point about a year ago, but since then have started paying down balances, and I have not missed a payment in a year. I have raised my credit score from the low 500's to a current 683.
I am afraid about requesting a lower interest rate or attempting some so-called "debt consolidation" plan, as I feel these routes will likely drag down my halfway acceptable score right now. I feel I can get it up to 700 by the summer.
My question is, what are my chances of getting a personal loan in this economy, with a 700 credit score, for about $7500 to pay off one of my cards and then simply repay the loan with a lower interest rate?
I'm not saying this loan won't lower my score, but I feel it will likely be less of a hit than any of those consoldation schemes.
I only make about $1700/month, so you know I'm getting hammered by not being able to quickly pay down the balances.
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Fri Feb 26, 2010 3:45 am |
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coaster
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I would do what you have to do to get those balances paid off and let the score go where it will. In the long term, you and also your score will be better off for having those loans paid off.
Good luck and best wishes. Go for it!! 
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Fri Feb 26, 2010 4:39 pm |
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justin
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quote:
Originally posted by coaster
I would do what you have to do to get those balances paid off and let the score go where it will. In the long term, you and also your score will be better off for having those loans paid off.
Good luck and best wishes. Go for it!!
Yes, I am agree with you as it is important to get over all your debts as it will definitely be worth for you and you will not find any problem in future.
Your credit score should be high so that there will not any issues with the debts.
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Sat Mar 06, 2010 9:49 am |
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jennquilter
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I agree with coaster--do whatever you have to do to pay down the debts, a personal loan isn't a bad idea if you'll be getting a lower interest rate.
Don't worry too much about lowering your credit score right now---your score is going to go up and down over the course of your life, and the debt can lead to financial problems that will really damage your score in the future if it becomes hard for you to manage your payments again
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Tue Mar 09, 2010 7:23 am |
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AlFromLA
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if you can make bigger payments, I would pay them. I would split the payments to twice a month that would help pay less interest.
But honestly if you can't pay that interest, call your creditcard company and tell them to reduce your APR or else you will stop paying them. Sure they will threaten you to hurt your credit but it sounds like your credit is bad anyway which is the reason you are paying such APRs.
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Tue Mar 09, 2010 10:31 pm |
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Sabri
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quote:
Originally posted by AlFromLA
if you can make bigger payments, I would pay them. I would split the payments to twice a month that would help pay less interest.
But honestly if you can't pay that interest, call your creditcard company and tell them to reduce your APR or else you will stop paying them. Sure they will threaten you to hurt your credit but it sounds like your credit is bad anyway which is the reason you are paying such APRs.
I totally agree on paying a bit extra monthly. Cut down on your gourmet coffee or something and make extra payment instead. It will also help in your credit rating.
Secondly, if you can get a personal loan at a lower interest rate, go for it. As jennquilter says, don't worry too much about your credit score unless you are planning to apply for a car or housing loan in the immediate future.
Holocene, click on the link at my signature line and navigate through the website. There are a few links relevant to no-credit-check-loans, credit check, credit repair and other relevant topics, links of which that unfortunately I can't post directly here to make it easier for you.
Don't forget to claim your free $600 gas and food rebate certificates even if you only applied for a free quote anywhere within the website.
Or, you can also email me for more details..
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http://vur.me/sabrikl/Why-With-Us-You-Cannot-Fail
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Sun Apr 04, 2010 10:23 am |
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MJohn1285
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My wife and I are in a very similar situation as you. With the high interest rates you really have to put alot of extra money down on the principle just to make a dent.
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Mon Apr 05, 2010 6:10 am |
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payoneday
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| Interesting rate. |
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Interesting rate is the thing that you have to consider before you get some loan or deposit your money some bank or company.
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Wed Apr 21, 2010 10:47 pm |
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clarissa_vargas
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Your credit score shouldn't be your main worry right now.
It's better to concentrate paying your debt as quickly as possible the reason is because you could fall in another financial hole that could put you behind once again and you would end up hurting your credit in a worse way.
Your best chance is to go directly to a lender and applying with your current credit score which is pretty decent taking into consideration the problem you had previously. Or you could always ask the credit card company to reduce the APR regardless of the consequences.
If you can make your debt be repaid to a single lender with a better APR you will be able to have a more accesible repayment plan which could make easy and quicker for you to fully pay it off and just rebuild your credit without that same stress.
 good luck!
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Thu Apr 22, 2010 12:07 am |
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Adria.John
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I just wanted to make you all aware that if you have a credit card, there is a need to always make sure you meet the monthly payment. If you don't, your credit score can be badly affected making it harder to get other types of credit in the future. Not only this, but the credit card companies will charge you a fee for missing the payments – they'll then add this to your balance and charge you interest on it along with everything else. This may be one of the things that come last in payment allocation, so it can ruin any 0% offer you may have too, in the way explained above. This means it can be cheaper overall to meet the monthly payment by using other sources of credit.
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Thu May 06, 2010 11:46 am |
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littleroc02us
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You know what's interesting is that you don't have these conversations about interest rate and credit scores if you don't use credit cards. When I pull out my bank card to pay for something, I don't worry even for a second about what my interest rate is and how my credit score is affected. Pay off the cc balance by any means possible and quit borrowing money to pay for frivilous things.
“If you want to stay in debt forever, keep borrowing money.”
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Thu May 06, 2010 2:57 pm |
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pwsolutions
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there is nothing you could do with your high interest rate. the only thing you can do to reduce your interest is debt consolidation. i have seen many people signing a high interest loan but they that ruins their lives. if you can't pay that much, you can simple go for debt consolidation option
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Wed Jun 16, 2010 3:35 pm |
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pwscs
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quote:
Originally posted by pwsolutions
there is nothing you could do with your high interest rate. the only thing you can do to reduce your interest is debt consolidation. i have seen many people signing a high interest loan but they that ruins their lives. if you can't pay that much, you can simple go for debt consolidation option
exactly. it is useless to cry over spilt milk.
all you can do is debt consolidation. you can find good debt settlement companies on internet or visit my signatures.
Debt Consolidation | Debt Relief
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Wed Jul 07, 2010 11:08 am |
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Eric80
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If I were you, I won't worry about credit score now. actually, 700 is not bad. like others suggested, save some extra money and pay more to eliminate the debt asap. you can always improve your credit score later, but if you do not, the owned debt will be more and more, which is very bad.
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Tue Jul 13, 2010 7:41 pm |
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Credit Money & Life
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Ok for being someone that works in the industry. I would say you are not a good canidate for Debt Settlement, Number one is you are paying way more then your minimums. Secondly it will effect your credit when there is no need to. Consolidation isnt the right solution either as it will affect your credit for 7-10 years as a Third Party Intervention which is viewed as a little brother to bankruptcy. Come on people give the right information to these people rather then just trying to drive them to your company for business. HAVE INTEGRITY! You are on the right track in paying them. You should be able to get them paid in 10 months. Here is what I got off of the CNN Money debt payoff calculator.
YEAR 1: Monthly Payment Plan
Month___CC($7,500)____CC ($4,000)___Remaining Balance
1________1,280.00________120.00_________ 10,351.66
2________1,280.70________119.30___________9,174.70
3________1,281.40________118.60__________ 7,968.42
4________1,282.09________117.91___________6,732.09
5________1,282.77________117.23___________5,464.94
6________1,283.46________116.54___________4,166.23
7_________304.15________1,095.85__________2,835.15
8__________0.00_________1,400.00__________1,470.91
9__________0.00_________1,400.00____________72.68
10_________0.00__________ 72.68______________0.00
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Tue Jul 13, 2010 10:10 pm |
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