How bad is your credit card debt?

[zahncrelnik]

This link should take you to an article on increased minimum payments on credit cards:

http://moneycentral.msn.com/content/Banking/creditcardsmarts/P117014.asp

I am very grateful that I just refinanced my mortgage and am able to pay off almost all of my credit card debt. Good luck to anyone out there who owes too much to a credit card company that is increasing that minimum payment amount...

[LT Garrix]

Good luck, fellow Scapers. Thankfully we have managed to escape the credit card companies grasp.

It's better in the long run, but could hurt in the short term.

[BrowderChick]

I dont have any credit cards. :D

I only have one small personal loan out there.

:sweaty:

[trinamick]

I read this article this morning too, and I have to admit I was freaking just a tad. I have way too much credit card debt. Or maybe it's way too little paycheck...

[freckle]

i got a huge loan to pay off ALL my debts so now i just pay a wee amount each month....i know i sound like one of those commercials but it really makes sense to get rid of high interst debt like credit cards.

[scrape_medic]

I am just waiting for Agenda For Change to be implimented, then I can stick that credit card debt where the sun don't shine. (If we ever get the wage increase that is). I got to admit its been nice lately being able to buy things with cash....paid up front and nothing else to worry about. (except for the new kitchen.....but thats desperate).

The only trouble with consolidation loans is getting into the mindset that you can run up more debt on the credit card....if loan is the route you are going.....shred the cards!

[NYPinTA]

I finally got out from under all my credit cards last year and only carry a balance on one card because I use it for online transactions. I usually pay it off at the end of the month, so the higher minimum payments don't bother me really.
I just wish they would have a class in High School that really got into credit cards and all the pitfalls of having them, especially since so many kids are getting into bad financial trouble while still in college because of credit cards.

[trinamick]

I used to pay mine off every month too, when I waitressed and had instant cash. Most of my debt isn't even fun stuff, just unavoidables: car bills, vet bills, doctor bills, etc.

[zahncrelnik]

I read this article this morning too, and I have to admit I was freaking just a tad. I have way too much credit card debt. Or maybe it's way too little paycheck...

I would call it way too little paycheck.

And, I also use my credit cards for necessary items:
doctor bills, auto repairs, food...

[freckle]

I agree.Its never-never land when it comes to credit cards, and i dont think kids understand the consequences.

I saw a really good show once i think it was Oprah, where she pointed out to this really poor couple that the dinners at fancy restaurants that theyd paid for on the credit card had been digested over a year ago but there still paying for it! What a good point eh?
I always remind myself of that if i'm tempted to buy something stupid on my card like hair dye or something!

[kymom5613]

Well, as long as you pay it completely (or mostly) off every month (use it like an American Express CHARGE card, not credit card), then there is usually not a problem.

[Mrelia]

I have just one card with a bad balance, but its at a really good promotional APR because I consolidated several and then closed accounts. I've been making way more than the minimum payment anyway so it doesn't bother me as much.

Now if you want to talk about big debts in student loans...

[zahncrelnik]

Well, as long as you pay it completely (or mostly) off every month (use it like an American Express CHARGE card, not credit card), then there is usually not a problem.
:lol, you must be joking --if I had that kind of money -why would
I use the credit card?

Yes, I know, that is how I got into trouble in the first place.
But as said before, I am using the credit card for auto repair,
doctor, food. What am I going to do? If I could find a
roommate to share the mortgage payment things would be
different. And, NO, I don't want to sell my house, it actually
is the best value for me, there are details that make it
cheaper, in the long run for me to own the house I own.

[NYPinTA]

I think I spoke too soon about not having any debt. I gotta take the Stanley kitty to the vet today. Dumbass scratched his own face and his eye is swollen now. *sigh*
I think credit cards are the reason so much stuff costs as much as it does today. If there weren't credit cards, no one could afford half the stuff they do.
That's my wacked out theory and I'm sticking to it.

[zahncrelnik]

I think credit cards are the reason so much stuff costs as much as it does today. If there weren't credit cards, no one could afford half the stuff they do. That's my wacked out theory and I'm sticking to it.

That's not a 'wacked out theory', it's the plain truth.

[BrowderChick]

I used to work for Sears Credit Central as a collector. (reason why I no longer have a credit card...saw too much crap there) Word of advice, if your minimum monthly bill is $50, pay at least $70. That $50 is mostly just the charges they add on. Not the actual bill for what you purchased. Thats where they get you. You will be paying for that one item for 4 years if you just pay the minimum. I feel that if I dont have the cash to get what I need then I guess I dont need it that much. If I need a credit card to get something then I go to the bank and get a pre-paid one.

[kymom5613]

I was also in collections, and it was truly one of the worst jobs I ever held. I felt so sorry for most of the people I was calling. I know that their money situations were not good, otherwise, they would not have been getting a car from a buy-here-pay-here lot...
I do my best to pay more and keep what balances I can to $0 each month.
:)

[fiona-maria]

I took out student loans (and went to school for a BFA) because I needed job skills that would get me a job that paid well enough I could support myself and my family without having to rely on my ex for child support.

I got a really good job right out of school, bought my house, and was able to get a home equity loan installing new guttering, a new roof, a new furnace, electrical and plumbing work, and insulation blown into the walls.

On my Sears card I bought an energy-efficient washer/dryer, dehumidifier, tires, a garage door, water heater, dishwasher.

All necessary, not optional.

I was summarily fired February 2004 and did not find a job until November 2004. I am making 1/3 of what I was making, and my debt load has become unmanageable.

I consolidated my student loans because I thought I would get a lower payment, but it went up.

I tried to refinance my house 4 times in the last 18 months. They keep telling me my credit is too bad. Well, that's exactly why I want to re-finance, hallo? So I can be responsible about the debt I have taken on, debt I took on when I had a job that earned me three times what I am making now.*argh*

Catch-22. I have to have good credit to get my house re-financed. My credit is bad because I can't get my house re-financed and pay off my credit card debt.

And Sears' 26% interest is killing me.

This is a stupid way to run my finances.

[kymom5613]

sending prayers over to ya...
:hugz:

[zahncrelnik]

sending good thoughts to fiona-maria :meditate:
where in the 'uncharted territories' are you anyway, if I may ask...

[fiona-maria]

Ah, thank you, kymom and zahncrelnik. Sorry, I didn't mean to get on a rant. I do get a little frustrated sometimes, though. I get by, with help from friends and family. And it is always great to have your prayers. Appreciate that.

I am what is known as the working poor. Yep. A whole segment of society, encapsulated in me.*smile*

Zahncrelnik, I am in Twin Cities, near harveywhispers and vikingscaper. In fact, we are all members of Twin Ciities Scapers.

You know what is scary? All these high-school and first-year college kids being given credit cards with high limits.*shudder* Poor kids. No impulse control and out from under the parental thumb...*wince*

[zahncrelnik]

Ah, thank you, kymom and zahncrelnik. Sorry, I didn't mean to get on a rant. I do get a little frustrated sometimes, though. I get by, with help from friends and family. And it is always great to have your prayers. Appreciate that.

I am what is known as the working poor. Yep. A whole segment of society, encapsulated in me.*smile*

Zahncrelnik, I am in Twin Cities, near harveywhispers and vikingscaper. In fact, we are all members of Twin Ciities Scapers.

You know what is scary? All these high-school and first-year college kids being given credit cards with high limits.*shudder* Poor kids. No impulse control and out from under the parental thumb...*wince*

That's okay, I knew there would be rants in this thread. That's what
we're here for -to support and encourage each other, right?

Yeah, it is scary that they are issuing credit cards to those young folk.

[LT Garrix]

My SIL fell into that credit card bit. It took her something like 6 years to get out from under it. It's an evil, evil thing that credit card companies will give credit to anyone, even pets. In a way, I get PO'd at the people that run up debt on frivolous things (like high dollar fashions and meals out), but then I realize the credit card companies do it to themselves by issuing cards with $10k limits to people with NO income. WTF are they thinking? They are thinking this is someone they can get for interest and finance charges for the next 15 years is what they are thinking and thenI get PO'd at them.

Anyway, we've been fortunate enough to avoid that whole scam. I count myself lucky my parents taught me to be responsible with credit and that somehow hubby learned it while sis did not.

[faustus]

I got 0 debt and 0 credit

[StephX]

I have school loans, but, no credit cards and both our cars have been bought with cash.

[Xev]

Hmmm what can I say without saying too much?


In October '04 we were preparing to file bankrupcy, meeting with an attorney and everything.

In November '05 my husband got an amazing opprotunity to take a promotion in a different area making way more money.

March '05 our long time house guest moved out, taking her $300 monthly rent payment with her.

In April '05 we refinanced our home....We had TONS of debt, our only saving grace was the value of our home and that we always made our payments on time (even if barely). We put the debt of one 2nd mortgage and 7 credit cards into our home loan. Thank goodness we had the equity to do it and thank goodness our city is growing by leaps and bounds so we'll gain even more before long.

As of May '05 we are putting $650 in savings every other week...so, $1300 a month will go right into savings. However, I should add that we do like to spend money. So sometimes money going into savings doesn't always stay in savings (damn American Express!), but that's fine. We're at a point that money is a concern only in saving for a rainy day (and a sunny day) and paying off the remaining debt.

I hope that wasn't boring...if any one actually read it. I'm just really really excited about it. I can't believe the way things have changed in the past 7 months. That is really lame about raising the minimum payments though. That shouldn't be allowed...maybe start new card members with the higher payments but don't change anyone that's already established. That so totally sucks.

[Xev]

Holy hell that's a long post. Sorry 'bout that!

[Selena]

I think one of the most disgusting and devious things that credit card companies do is prey on College/University students. When my son started College he wasn't even 18 and was here on a student visa which means he wasn't allowed to work. A credit card company signed him up and gave him a $500 limit on a card which was very quickly maxed out. When we got the first statement and I saw how much he owed on it I was shocked :eek: I called the company and asked how they expected to get paid when they signed up a student that had no income. They expected the parents to pay. I pointed out that they had not asked my permission for him to have a card or had my authorization on any of their documentation. They didn't care they just kept sending the bills. I was :pissed: to say the least.

It took me months to get a credit card when I first came to the USA as they said I had no credit history ... duh ... I came from another country - of course there would be no credit history in the USA. I had a job and had documentation about my credit history from Australia but it didn't matter - yet they gave a kid under 18, with no job a credit card without batting an eye. Go figure!

[zahncrelnik]

That's how they get us. They suck us in with promises of a better life,
if only we would spend spend spend. Then years later we all go bankrupt.

I have managed to pay off almost all of my credit card debt by refinancing
my home. But, I need the credit card to pay for auto repairs and sometimes
doctor visits. I am trying desperately not to use them for anything else.
Honestly, though, paying on time doesn't really help you if your credit
cards are completely maxed out. The debt to income ratio is very important.
That is where I got scr*wed big time.

[trinamick]

Mine aren't maxed out, but two of them have pretty high balances on them. Most of my tax refund and all of my bonus every year goes directly to them. :(

[fermicat]

To everyone struggling with debt of any amount, I highly, highly, HIGHLY recommend this book: "How to Get Out of Debt, Stay Out of Debt, and Live Prosperously" by Jerrold Mundis.

http://www.amazon.com/exec/obidos/tg/detail/-/0553283960/qid=1116540111/sr=8-1/ref=pd_csp_1/104-2659084-8291914?v=glance&s=books&n=507846

I had a debt problem that started small and ended up hopelessly enormous, but today I am debt free and my credit rating is excellent. I keep one active credit card and have one in reserve that is never used, and pay off any new charges each month. I built up a small balance ~$1-2K in 1994 and it got much worse during my first marriage due to my husband's spending habits (and also my own, but to a lesser degree). By the time I asked for a divorce in 2001, the debt that I ended up being responsible for was around $40,000!!!!! And yes, this was all on credit cards. And even though I never missed a payment, some of the creditors began raising my interest rates simply because my overall debt load was high (which royally pissed me off, but I couldn't do anything about it). I took out a home equity line of credit with a first year rate that was very low and a regular rate that was also much lower than any of my credit cards, and used this to pay off my credit cards. I promptly cancelled all but two cards (and it was a real pleasure dumping the companies that had been dumping on me by raising their rates - I kept only the two creditors that never hasselled me, raised my rates, or treated me poorly). I also made up a budget (or a spending plan, if you prefer) and devoted as much of my take home pay to paying debt as possible, but at a sustainable pace. I was lucky to have relatively low living expenses, especially after becoming single again. It took me two years of paying it down very aggressively, but I did it. If I had not been able to get the equity loan, then it would have taken 3-4 years, but still would have been worth it.

Read the book, take the advice (it is very practical), and do it a little bit at a time. It might take a very long time, but it really is worth it. I read the book many times before it all sunk in and I was finally ready to take his advice and work on the problem more seriously (and I got rid of a huge source of uncontrollable spending with my divorce). Best of luck to anyone working on this. It is a very difficult problem and can be painful to solve. Just keep trying.

[zahncrelnik]

A great recommendation, thank you fermicat.

It has made me feel a little better to know that I am
not the only one here who has had debt problems.
I hope some of the younger folk read this thread and
learn something from the mistakes of others.
Be extremely careful how much you spend on any credit card.