Question by AndySunshine: Current american credit card debt?
Hey does anyone know how much credit card debt America is in as of 2008?
Also including a credible website would be nice
Thank you all so much!
Answer by Navy Lifter Americans currently owe about $ 951.7 billion total in debt. While common statistics report that the average American owes $ 8,000 credit card debt; it isn’t entirely accurate. Most Americans actually owe nothing in credit card debt. Only about 1 in 20 households actually carries $ 8,000 or more in credit card debt. The actual average cc debt per household is under $ 2,000.
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Question by ITS A BOY!! 3/12/09!: 21 with credit card debt…HELP!?
I am 21 years old, in my junior year of college (30K + in student loans), pregnant (4 1/2 months) and engaged to be married (2010). Between my fiance and i we have about 3500 of credit card debt, as well as he owes 3000 on an old car loan that he defaulted on before I met him. I am overwhelmed and and am trying to figure out what i can do about this. I would love to transfer the balances, but they said that my cards are all maxed out and the minimum amount of balance transfer is too low for them to do it. Are there any suggestions for how I can get a handle on this debt?
Answer by Christin K Pay it down gradually as much as you can every month. That really is the only good (not quick) fix.
You absolutely MUST pay more than your minimum balance every month–even if it’s only 10-20 bucks more. Nothing else will work, and few other solutions IMPROVE your credit.
$ 3500 is almost nothing compared to other peoples’ debts these days. That ought to be manageable even with high interest rates on the card. DON’T use the card while paying it down! You’ll never get it paid down.
Don’t try to transfer the balances either. Those low intro rates bloom into something like a nightmare later. And don’t try using a finance company or any other “quickie” loan place, if you want to rid yourself of debt.
Call the credit card company and ask them for a lower interest rate. If you’ve been paying as agreed, and you haven’t charged much lately, and you have been on time for at least 1 year or more, you should be able to negotiate a lower rate. Ask for a supervisor when you call and simply ask–don’t accept any other offers from them, and be NICE and POLITE when you ask. All that can happen if you do this is that they say no, or not yet. If they do, ask what it would take to GET a lower rate. Then do it, as long as it doesn’t involve opening any new credit accounts.
Question by my: any one use credit debt relif program?
Is any one use credit debt relif program
is it hart for u credit scoure
please let me know thanks
Answer by CatDad These programs involve deliberately ceasing payments to all your creditors to force your accounts into default to attempt settlements for less. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating. You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.
A better option may be to enter a debt management plan through a non profit credit counseling firm like CCCS. They can negotiate reduced payments and interest but NOT settlements. Use this site for a referral: http://www.nfcc.org
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Question by sissy: Where do we go for help with 135k credit card debt?
Gambler caused 135k worth of credit card debt. Is in ga now and in therapy. I don’t want to get in deeper trying to fix this? what is the best direction to go from here.
Answer by Bobby Digital Please don’t go to a debt management agencies unless its free upfront costs and monthly charge to many times I have seen people pay out for these places and they either keep the money to save up for settlement cost or charge you an *** load of money. First what I would do is go to www.annualcreditreport.com this is site that you can get your credit report for free, you do not need a credit card, registration or an account number they will just ask questions found on your report, the only catch is you can only do it once a year for 3 of the major credit bureaus. Now attacking debt of course will not be easy what you want to do is create a budget net income, monthly expenses (rent, mortgage, gas, food, insurance, etc) a realistic budget that you can live off of. Then you want to list your monthly debt with the minimum payments and find how much you have left over. This will show what your financial situation if your negative then we need to make either lifestyle changes, or speak to creditors, if its positive than we need to form a power pay plan to pay off the creditors. If you are negative call each and every creditor and ask for there “hardship department” and explain them your situation you never want to settle this will charge off the credit card and then you would claim the difference as reportable income and pay taxes. The hardship department at each creditor should be able to place you on a fixed payment program and reduced interest rate amount this should help us in our budget. So with changes in our budget and we are positive what you want to do is start with the lowest balance creditor and work to pay them off first, after we payoff that creditor we add the monthly amount to the next and so on this will power pay your accounts done so you will save time, interest, and increase your credit score at the same time. Your credit score is broken up into 5 parts.
Payment history- 35% make your payments on time
Balance- 30% the more your towards to the limit of your card your score goes down keep your balances under 25% towards your score and should not have quite an impact (i.e $ 1,000 credit limit, $ 250.00 balance)
Length of history- 15% this takes the average account life so if you took out a credit card in 2000 and then just open another card this year your average life 4 years. While your paying off your debt please do not take out any new credit cards this affect this portion of score and further increase your debt with more credit
Inquiries- 10% applying for loans, credit cards, mortgages, etc affects your credit since were not opening new cards this shouldn’t affect you, but if you do make sure you apply to as many lenders as possible within a 14 day period this credit bureaus understand that people shop for the best rate so make sure you can advantage of that because it only hits your score once during that period
Types of credit 10%- they like to see that you have a variety of credit mortgage, installment loan, credit card, line of credit, etc but if you have several loans, and credit cards it looks bad.
Question by Bobbi: Reducing credit card debt?
I am on a budget, successfully last two years. Before then, we racked up nearly $ 9000 total in credit card debt on five cards. (home repairs, stuff). We have paid our credit cards on time, and have NO credit cards now. My problem, I am aggravated. Before my budget, I was late paying on two cards , and all cards jacked my rates to nearly 30%. So, even paying on time the last two years, the companies still deem me ‘risky’ since I only pay minumum. I still owe $ 9000!! I asked for a payoff amount, since half of what is owed is interest and penelties. They all say no, nor will they reduce the interest rate. (heck, they have a gold mine with me!) Anyone have luck with a letter asking creditors to take a lower payoff amount ?? I am caring for an ill son so i can’t work, and my husband’s job cut back so we are getting half of what we were earning. I don’t want to do debt consolidation, since they tend to be a scam. If I can’t negotiate a lower payoff amount, how can they?
Answer by CammyB Thats crazy.! Poor you. Not all debt consilidations are scams. You and your husband aught to find a good, trust worthy one and see how they can help.