What is the best way to get out of credit card debt I have only one card that I maxed out and owe $1209.02. I want to get this paid off-however I made only $9.00hr. Now I've been laid off my job, with no income presently. I know I will get something soon. Should I use the community counseling credit office or the get out of debt companies I see advertised on TV. Thank you for you help.

The best way is to STOP charging and KEEP paying.

While some credit counseling services may be of help, with only one active account, you should be able to do this yourself, without paying someone a fee to process your payments.

I have not heard, or read, any good reports about these "eliminate up to half your debt",credit card relief companies. Unless you have a card with an interest rate of 20% or more, often these companies do little more than getting the interest rate lowered, which if you calculate minimum payments over the life of the balance, does result in a huge savings, but has no effect on the actual balance remaining.

Also, the credit card companies will not settle with an account that is not already in default so if your payments are current, that won't be an option.

Good luck to you!

You may contact one of the counseling service, CCC has a good name for their services, But you still will have to make some payments though them. And often making this arrangements if you can't make those payments often make it worst. So if you do make an arrangement, you will need make payments.

But the main advice, cut the card up and don't charge anything else.

But then get a job, not sure your skills or training, but get some job, get a second if you have to

Hello Powerfulpat

Hopefully you can find something soon. One thought would be to take your stimulas check and pay on that card try selling anything you don't need and put that money toward your card. I know its hard but if that is your only cc then you are in better shape than most. Try not to stress take a deep breath and sit down and see what you can do until you have a job again. Another idea is to do odds and end jobs such as lawn care etc.

Another point, is you should inform your CC company about your situation immediately. Sometimes they will suspend interest until you get another job. But whatever you do, don't hide from them. They are much more willing to work with you, if you are upfront and keep them informed.

I am in the same situation. The problem I was having was facing the reality that I was in a terminal situation with the credit card. Even if you make the minimum payment, it will never pay off the card. The truth is, some bank loaned you the money on your signature and they took a gamble. It did not pay off for them. Of course, if you don't pay, there is the threat of the bill collector. But if you take your emotions out of it, you can fight the bill collector. I just read the article How to beat a collection law suit 4 steps to success at this site, by Andy Neims. Just remember, the bank does not care about you. They are just in this for the money. Sometimes you just have to quit paying them and fight back.

Quote:

---

Originally Posted by geezer57

I am in the same situation. The problem I was having was facing the reality that I was in a terminal situation with the credit card. Even if you make the minimum payment, it will never pay off the card. The truth is, some bank loaned you the money on your signature and they took a gamble. It did not pay off for them. Of course, if you don't pay, there is the threat of the bill collector. But if you take your emotions out of it, you can fight the bill collector. I just read the article How to beat a collection law suit 4 steps to success at this site, by Andy Neims. Just remember, the bank does not care about you. They are just in this for the money. Sometimes you just have to quit paying them and fight back.

---

I disagree with some of this. If you make the minimum payment and don't use the card, eventually it will be paid off. Minimum payments are calculated to be greater than the interest due so some prinicpal is paid each time.

Also, I don't think the OP is in the same situation. There is no indication that he is behind on his payments yet or that the account is in collections. So your advice seems to be jumping the gun here.

While its true that banks are a business and they are in it for the money, many banks do understand that a card holder can encounter some hard times. In my experience many will work with you as long as you are upfront and honest with them. But just stopping payment is not going to sit well with them.

Finally, while I have advised many people here on how to fight back against bill collectors, the fact remains that you did borrow the money. There is always a moral obligation to pay that money. While its possible to beat predatory bill collectors, one should try to pay what they owe whenever possible.

Another point, is you should inform your CC company about your situation immediately. Sometimes they will suspend interest until you get another job. But whatever you do, don't hide from them. They are much more willing to work with you, if you are upfront and keep them informed.

Finer words have not been said! This is exactly what you should do right away!

LG