Hello All,

I am currently going through a divorce and I am trying to straighten out my finances. I had been using my Discover Card to live off during the separation since my ex-husband brought home most of the money in our home. I have completely maxed the card out with cash advances so now my interest rate and finance charges are so high that I'm not even making a dent in the balance. Even when I pay over the minimum payment, there is still no drop in the balance. Is there anything I can do to help get the balance down? Is it better to make regular minimum payments while saving and then hit them with a big chunk rather than paying a little over the minimum every month? Any advice would be helpful. Thanks! :o

I know exactly where you are coming from concerning this as I know what it's like to have to "live" while using credit cards and then not being able to pay them off.

I called the company from where I had two of the cards. We negotiated a monthly payment that I can afford and also a drop in the interest rate. Instead of around 30% for each card, it is now only 5 & 6 something percent. Whew!

The catch is, that I can't be late with the payments. But, at least I was able to negotiate with them. It was Bank of America.

Recently, I tried negotiating with Chase. But, that was a no-go, because it had already gone to the litigation stage. I transferred money from another card with low interest rate to the Chase card to at least make a couple of payments. It worked and got me out of the litigation thing.

I would suggest calling them. While having a friend as a witness on another line in your home. Tell them that someone else is on the line. The other person I had on the line was a CPA who is a friend of mine. That really helped, because if there was something that I forgot to ask, she could speak to them about it.

I would agree, call them and explain your predicament and see what they say. If you can't negotiate, pay off over the min payment each month, I am rubbish at math but I think that will reduce the overall interest they will add on each month and so reduce your balance more.

Just another thing about even another card I have. Just to make it short, I tried to get the interest rate down, and they said that as long as I make the next two payments on time, that the interest rate will go down to the low rate that it was originally.

Have any of you tried the debt consolidation places to get a better interest and financing rate?

From what I understand the debt consolidation places are mostly a scam. They let all your accounts fall into collections then try and negotiate with the vendors for lower rates, less fees, etc. It will murder whatever credit score you have left.

Call your creditor and see if they will lower your rate or take off any fees. Look into a balance transfer at a lower rate to another card if nothing else. Always pay more than the minimum if you can afford it. If at all possible, stop using your credit card and budget budget budget with your current income. That way, your payment will actually make the balance go down.