Credit Card Debt...

2fishy · #1 12/26/2007, 11:56 PM

So I got to thinking about paying off credit cards and remembered when I had ordered my car I had paid on my car weekly instead of monthly to keep the interest rate down. So, has anyone ever tried doing that on a credit card? I'm sure the credit card company wouldn't appreciate it but it would be interesting to see how much of a difference it would make in the long run! And besides who really cares if they like it or not, right?!

MandM · #2 12/27/2007, 12:34 AM

It would depend on your card agreement, generally the rate will be the same, but the average daily balance will be lower if you pay weekly. (If that is how they are charging you) The best thing to do is pay off the balance each month and you pay no interest at all. If you need to make a large purchase that you want to finance over several months, try a signature loan for that purchase through your bank or CU instead of a credit card. The rate will usually be much less.

dinoman · #3 12/27/2007, 06:51 AM

I have one question 2Fishy....how does one choak?

dc · #4 12/27/2007, 10:29 AM

LOL, credit cards are evil....I haven't had one for years.

2fishy · #5 12/27/2007, 10:38 AM

Quote:

Originally posted by dinoman
I have one question 2Fishy....how does one choak?

It's when you travel this far and get stuck in the freezing cold, snow, and your brain cells freeze together like nostril hairs! Something that you would never have to worry about, dino!

dinoman · #6 12/27/2007, 11:42 AM

Well of course not, I'm smarter than that. I put a coat on so I don't get cold!

drauka99 · #7 12/27/2007, 11:45 AM

carole - I'm looking at getting a second job (part time) to pay down my cards and such. My plan is to "gang" up on one card and pay it off then "gang" up on the next till they are all paid off. I want to be credit card debt free by the end of 2008.

the sooner the better and then I want to start on car payment the same way.

Sk8r · #8 12/27/2007, 11:53 AM

An excellent notion. Imho, any money spent on interest that does not itself earn money [e.g., a car/computer you use to improve your business] is money gone with the wind. A house is the one thing you just about can't help paying interest on---but the rest...I applaud you for doing it. So many don't.

crzy4reefs · #9 12/27/2007, 01:16 PM

few things i've (me and my husband have learned) we were in major debt think it was discover card (we had at least 10 grand in debt) paying 300 and up a month and that was basically for interest fees, that was like that for 7 years we finally paid it off he had to dip into his 401K to finally pay it off i think it was like 7grand they agreed on for us to pay.

then we were in debt for a bit cause eric bought a used car that he payed through the bank and one of my cars...........WE will never ever buy a car we can't out right buy hence my new (to me) 95 dodge stratus for 400 dollars through craigslist.

joeychitwood · #10 12/27/2007, 03:08 PM

I pay the balance every month, but I charge all of my big-ticket items rather than pay cash or by check so I can get the frequent flyer miles on my World Perks account.

crp · #11 12/27/2007, 03:15 PM

I very rarely use a credit card and if I do, we pay it off every month.

Most of our big ticket items like furniture or appliances we get on a "no-interest" account and make sure we pay it off before the due date.

mr9iron · #12 12/27/2007, 03:27 PM

Pay those suckers off and get rid of them! It's the best thing the wife and I have ever done. If we can't pay cash for the item we want then we don't need it. Plus, it's kind of fun to save the money to get whatever it is we want.

crzy4reefs · #13 12/27/2007, 04:18 PM

we have our bank card it's credit/debt and it comes right out of the account no paying it later type of crap. I hate having cash on me.

TheBimbo · #14 12/27/2007, 08:32 PM

Quote:

Originally posted by 2fishy
So I got to thinking about paying off credit cards and remembered when I had ordered my car I had paid on my car weekly instead of monthly to keep the interest rate down. So, has anyone ever tried doing that on a credit card? I'm sure the credit card company wouldn't appreciate it but it would be interesting to see how much of a difference it would make in the long run! And besides who really cares if they like it or not, right?!

here I thought it was okay to charge all of them to the max then file for bankruptcy- that way you can have stuff that you never had to pay for

...not that I know anyone that did that on purpose

seriously though- that is a good question, let us know what happens...

Christy

Scuba_Dave · #15 12/27/2007, 09:34 PM

You can send as many payments as you like
But some credit card companies will not put that towards a next months amount due
So if you run into a problem, you may still have to pay the monthly payment even if you have already paid 2x that the month before

2fishy · #16 12/27/2007, 11:34 PM

Quote:

Originally posted by crzy4reefs
few things i've (me and my husband have learned) we were in major debt think it was discover card (we had at least 10 grand in debt) paying 300 and up a month and that was basically for interest fees, that was like that for 7 years we finally paid it off he had to dip into his 401K to finally pay it off i think it was like 7grand they agreed on for us to pay.

It's Discover that caused the thought for this. My brother is a truck driver & used to be independent. Apparently he fell behind on the credit card payment or was only making the minimum and somehow the interest rate sent him into overage charges and after sitting down and figuring it out he figures he's paid a huge amount (he said something about $18,000 on $5,000 charges, but I can't remember if those were exact numbers). Anyway he has tried calling them to come to a lesser agreement feeling that he has paid a substantial amount on a creidt card he hasn't used in 2 or 3 years. He has tried calling but they won't settle on anything less. On the advice from my sister-in-law I told him to request to speak with the settlement department and they would not put him through. I've been racking my brain to figure out an easier way for him to get through this as he is not for sure if he will be able to keep working after Friday because he is not for sure he will pass his physical.

Quote:

Originally posted by Scuba_Dave
You can send as many payments as you like
But some credit card companies will not put that towards a next months amount due
So if you run into a problem, you may still have to pay the monthly payment even if you have already paid 2x that the month before

That's a good point! I wonder if that would be the case or not. Then your almost better off making the payments to the bank and taking out a loan to do it. I did that a couple times. The only bad thing about that is they will take the card and cut it up, so that's not recommended for anyone who isn't ready to give up their card!

Sk8r · #17 12/27/2007, 11:53 PM

Ask what your bank's interest is. Then consider the 18% of credit cards. Cutting up the card is not a bad idea.

Or...what I have heard of---freeze the sucker in a block of ice in the bottom of your freezer.

If you really, absolutely needed the cold cash, you could thaw it out...

Or your bank might make you a second loan.

Bank loans are relatively easy to pay off, v. doing it with a credit card company.

crzy4reefs · #18 12/28/2007, 05:56 AM

yeah i feel for him we used the card for like 2 yrs and then it was like 6 or so years of not using that frigging card but still paying on the VERY high interest and weren't getting anywhere. we cut that card up and have just been using the bank card from now on. It's taking us 2 yrs (that's when we paid it off using his 401K) and we are just breaking even again and that's with my poor husband working 7 days a week and up to 70-80 hours.

we are paying our bills and mortgage on time again and it feels great. Credit cards can be the worse thing sometimes and i really hate discover (from what i hear from other people they hate it too.)

we still do this day (at least i don't) know how we got into so much trouble we were making payments i think he may have skipped a payment or a few and thats' probably when the trouble started and basically all the money from there on went on paying off the interest wasn't even putting a dent into anything else.

TheBimbo · #19 12/28/2007, 08:40 AM

I think when you miss a payment they have the right (in fine print) to up your percentage rate

atleast that's what hubby has always said- our bills are always paid at the very least 1 week or so ahead of time... those late fees we have heard from many people will kill ya...

I do commend you guys though for sticking it out and paying them, hubby's cousin had filed 2 times even after building a brand new home... his ex just couldn't stop charging- he'd cut them up and she'd get new- the courts didn't care that it was her that was doing it either- they're separated and he is still paying on the bankruptcies

also know of somebody that did it all on purpose knowing full well they had NO intention of paying for their stuff

...

Christy...

crzy4reefs · #20 12/28/2007, 08:47 AM

see we did but things just happened and it snow balled on us but through it all we just learned allot of lessons, the hard way but we've learned. The financial burden it puts on a relation ship is hard but we've made it through. Not a place we want to be in ever again.

His truck has been paid off for 2 -3 yrs now, my car (that is in the garage needing to be fixed is all paid for now) and since gas is expensive someone gave him a free car a diesel benze (spelling) old car but cheaper to run then the truck and then when my last car died (had it for 4 yrs paid 400 for it and now my new one paid 400) we will never ever get a car we can't out right pay for it.

I keep telling him to sell my benze (1984 500 SEL) cause it's not exactly cheap to fix them it was in an accident someone ran a red light and i couldn't stop in time so there was front damage to my car. the truck we wanted to sell but it does come in handy for things and in the snow (4 wheel drive) his car doesn't do well in the snow.

but i do despise people who get them selves in trouble well knowing that they don't intend to pay and just do the bankruptcy (spelling) thing

cristhiam · #21 12/28/2007, 10:15 AM

Anyone listens to Dave Ramsey? I'm currently working my snow ball, paid off 2 Credit cards in a couple of months, I have two more to go and then atack a student loan and then a second mortgage. It's all about living in a budget

hard to do but works. Also I sell a bunch of stuff on ebay.

2fishy · #22 12/28/2007, 10:17 AM

My brother talked of a friend that did the same thing (claiming bankruptcy, that is)! My poor brother can't even get firm with the customer service person and demand a settlement but I guess that's the way we were raised because I have a hard time doing that too!

But I explained to him that sometimes that is what it takes to dicker it down. What they don't realize that at his age he might not live long enough to finish paying them off, so they would be better off agreeing to a lesser amount!

2fishy · #23 12/28/2007, 10:23 AM

Quote:

Originally posted by cristhiam
Anyone listens to Dave Ramsey? I'm currently working my snow ball, paid off 2 Credit cards in a couple of months, I have two more to go and then atack a student loan and then a second mortgage. It's all about living in a budget hard to do but works. Also I sell a bunch of stuff on ebay.

I'll have to check him out! I went onto Oprah to check out that Debt Diet to see if I could find some tips on there to suggest to him, thought maybe I would see what I could figure out with us first before recommending too much to him. Today is his physical, and I hope everything goes well. He's driven semi for over 20 years and I don't know what he would do if he couldn't drive. The only other job he's done is work as a house mover and I don't think he could do that again!

kiknchikn · #24 12/28/2007, 10:27 AM

If you're disciplined enough to stick to a budget credit cards can earn you money. I probably make at least $500 extra a year by using a credit card from a combination of earning rewards points and earning interest on my money for an extra month before having to pay off the credit card balance. You just have to make sure you can pay for something before you can buy it

cristhiam · #25 12/28/2007, 10:55 AM

Also Dan Miller is another good podcast to listen to about career and self employement you can check it out at 48days.com, it's pretty good stuff.
Credit cards are dead traps, you can invest that money you pay them in good growth mutual funds, also having an emergency fund it's a good option not to fall in the trap.