[eshkha]

What is the easiest way to close credit cards? I have three credit cards and now, it is eating up half my salary and I struggle to pay the minimum balance too. I agree I should not have taken it in the first place, but now that I have, I am seeking advise to close it. Please advice

[Fr_Chuck]

First cut them up and don't use them again for anything.

Next take the smallest one and start paying any extra money on it.
Work out a livable budget plan and start paying the smallest one off first.
Once it is paid off, take the money you were paying on it and add it to the payment of the next smallest one.

It will take time but soon you can be out of debt.

[extreme42583]

Chuck is right as usual, pay them off as quick as possible. When you close them, make sure you ask your credit card company to send a statement that the account is closed. Also, you might consider calling the credit card company to get your interest rate lower. When I had credit cards I did that. They lower the interest with out a problem. Godd Luck

[tkrussell]

I believe you can contact the credit card company to inactivate the card(s) to prevent any more purchases to be posted, however, you may not be able to "close" the account until the debt is completely paid off. Once the debt is paid 100%, contact each card customer service and request the account be closed. Be sure to document all details time, date, who you spoke with when doing this by phone.

You may follow-up with a letter, to confirm your conversation. Be sure to get a letter from the company stating the acct is closed. and retain all this paper for your records. You may need written confirmation in the future to prove the acct is closed, and more importantly to prove that you initiated the closure. This appears more positive on credit reports, than the company refusing credit and closing the acct.

Fr Chuck's suggestion is probably the best method of paying down the debt in an orderly fashion that is easy to budget. Make only the min payments on two cards, and as he stated pay the smallest debt amount with every penny you can scrape up. Once he first one is done, you now, in your budget, have the min monthly amt you have already been paying on the second card, plus the amount you were paying on the first. The second will be paid off much more quick, and then do the same to the third.

Obviously, depending on the total debt, and the amounts you can pay over the min payments will determine the length of time this must be done.

The best advice I can offer is to be diligent, continue to pay the min amounts on all cards until you can attack the debt with more money, and document everything, each phone call, save all letters, and document each payment.

[Fr_Chuck]

Thank you, although this is not "my plan" there are some Christian debt couselors that have a national talk radio show every day. I listen to them a lot. They helped me get a hold of my debts. Their plan seems very simple.

Mainly first list every debt you have so you know exactly what you owe.

Then lower your bills. Stop eating out as much, lower the therostat, sell off a second car if you don't really need it. Don't buy anything new for a while.
And cut out extras to free up some money, you may be surprised people can actually live without cable TV or high speed internet.

Then take the smaller of your bills , pay it off first. That way you seem to be making headway. After it is paid off, take all the money you were paying on that bill and start paying another off.

OF course if you are just too deep in, you may talk to someone like the CCC and see if you can get them to work with the credit card companies, but remember when you do, it does hurt your credit,

[fredg]

HI, Eshkha,
The answers before mine are very good.
When you call to cancel a credit card, be sure you tell them to cancel it "at customer's request", and tell them to mail you a copy of the cancellation.
In that way, it is not reflected on your credit rating, incorrectly.

[phillysteakandcheese]

You wouldn't be the first person to get into trouble with credit cards.

I used to be completely buried in credit card debt myself. At least now I can see light! It does take a long time to get out of it... just keep working on it.

Chuck's advice is - as it usually is - very good.

[CaptainForest]

I would suggest that you pay off the highest interest rate cc first if lets say one is @16% and the other @ 24%