I need to consolidate my debt through one of those financial counseling places, but also want to keep my C.C.?

My biggest debt problem is a credit card that has nearly a 10K balance and about 60% of that is on Cash Advances which has a 25% APR. You see the C.C company has it rigged where making the min. payment of about $250, all of the new finances charges every month gets added on to the higher cash advance balance and all of my payment goes to pay down the lower purchase rate balance of 10% so basically I can't begin to pay down the higher rate portion of the balance (in fact it gets bigger every month) until I pay down the entire purchase rate balance of about $4,000. I spoke with a credit counseling agency about a year ago and they offered me a plan of about 10% APR on the entire balance, but only if I agreed to close that C.C. Acct. I am reluctant to do to that because it is my only source of emergency funds (I have purchase checks now at a lower rate). My question is, is there a credit counseling agency out there that will give me that better payment plan and let me keep that C.C

You do not need emergency funds from a c.c. if you save money. Just cut the thing up and take a home equity loan out if you have a home. If not apply for a zero percent (or lower percent interest) c.c. to transfer the balance to. Again cut up the new card after receiving. If not that, sell your car, buy a cheaper one, pay off card, cut up card. If not that, sell all the stuff you own, pay off card, cut up card-getting the moral of the story? Cut up the card, period. Only a handful of people in the world have the discipline to pay their cards off religiously on a monthly basis. You not only are not one, you actually take cash advances on them at a much higher rate. Credit cards are to be used only by highly disciplined and financial savvy people that can utilize them to gain rewards or acquire investments and have zero temptation to use them for non-capitalizing gain (buy something, not pay it off in less than 30 days, pay RIDICULOUS interest, etc). Emergency funds should be YOUR SAVINGS. If you go to a credit counseling service and they negotiate down your bill your credit will take a massive hit that is punishable for SEVEN years. Check out your home, car, loan rates, etc., then.

Cut card, sell-sell-sell stuff, pay off card, SAVE SAVE SAVE until you have your emergency fund. When you break the habit and start seeing the big financial picture you will hardly believe you were doing this in the first place. Look at your statement were it says YTD (year to date) interest paid. That is how much money you could have had FOR FREE if you were not using this card. Good Luck.

CUT UP THE CARD!!!! Look where credit has gotten you so far.


As far as consolitation, you don't need anyone to do it for you. All they do is negotiate your debts for you and collect a fee. You can do it yourself!

Call all of them and work out a payment plan and try to get your interest lowered or stopped.

Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.

You proabbly need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control.

Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.

Go to the library and get "The Total Money Makeover". Read it and follwo it carefully.

Go check out Dave's website as well.

www.daveramsey.com

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Sorry all credit counseling agencies close your account. The give you a 9.9% apr because the want you to pay off the balance. Not so that you can keep using it and get even deeper into debt. I work for a credit card collection agency and deal with this all the time. Good luck!

You are in desperate need of daveramsey.com! He has a plan to get out of debt that really works and costs nothing to you!
The companies that charge a fee often only get you in to greater trouble and yet another debt that you don't need. You can always call Dave Ramsey on his radio show and ask questions. He's a really smart and helpful guy.

The credit card debt consolidation loans allow you to combine all your debts into a single one that will attract the interest. This will prevent your debts from spiraling out of control and carry on with the repayment installment too. Another advantage is that this new rate will be far below the older ones. Make timely payments; or else you will be repeating the same scenario.


Use many online sources to find a right credit card debt consolidation loan. Here you will get multiple lenders in one place. You can also get nominal rates of credit card debt consolidation loans because of the stiff competition in the market. ...

http://www.freewebs.com/getanswer/Credit...