Credit Card Debt - Midlothian,IL

Updated on October 26, 2010
J.L. asks from Midlothian, IL
15 answers

anyone have any experience with credit card consolidation? Are credit card debt is starting to be too much, and we can't use a equity loan to help may down are debt. I have stopped using all credit card use and try to cut down spending. Any advice on any experiences with credit card consolidation firms or advice in similar situations will be helpful. thanks.

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So What Happened?

thanks for all the great advice. I have the Dave Ramsey book now...wish me luck! I hope I have the strenght to stick with it!

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answers from Boise on

I second Dave Ramsey, but recommend the Total Money Makeover. It is just a single book, but can get you on the right track.

1 mom found this helpful

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answers from Chicago on

You must read Dave Ramseys Total Money Makeover!! This book transformed me and my family financially! I was in your position a couple of years ago when I saw someone mention Dave Ramsey here on Mamapedia. I have not used a credit since then and have reduced my debt significantly. With Dave's plan we should be debt free (except for the house) in about a year. Please give the book a try!

1 mom found this helpful


answers from San Antonio on

Pay off the ones with the highest interest rate FIRST, then go on to work on paying off the next one with the second highest interest rate.

As far as spending - think about NEEDS and WANTS. At my house, we might WANT cable, but don't need it, so don't buy it. We might WANT a flat-screen tv, but don't need it, so don't buy it. I WANT a massage and pedicure, but don't really need it, so don't buy it. We only buy our small 'wants' to make us happy (soda, beer, the occasional out-to-eat dinner -- literally we only go out maybe once a month).

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answers from Chicago on

My husband just made his last payment through Christian Credit Counselors after 4 years of payments. He owed $60,000! It is a reputable consolidation company. My dad had used them before and that's why we chose them.
His debt was from his previous marriage. Together we had no credit card debt and now we have NONE! Pretty awesome!
It does hurt your credit to go through consolidation so you should know what your credit score is along with your husband's and only one of you should do it. All of the credit cards you consolidate, you can no longer use so keep that in mind. If you have a card that you use and pay off every month, don't consolidate that one. It's likely that you won't be able to get a new credit card once you start this process so if you feel you need security of a credit card, make sure you have one or get one that you can use in case of emergency.
It is absolutely crazy how much my husband was paying pre-counselor payments - the balance barely moved. I bet it would've taken 20+ years to pay it off. They got the interest rates lowered and found a comfortable monthly payment for us and like I said it took 4 years to pay it off.
My good friend consolidated through CCC maybe 6 months ago and she'll be paid off in 3 years. It's less money out than what you pay, even if you're paying more than the minimum, and the balances actually go down.
If you want anymore info on CCC, send me a note back and I'll ask my husband for their phone number.

1 mom found this helpful


answers from Austin on

Go to DaveRamsey. com. He is totally against consolidation. In fact he calls it a CON. We are going through his Financial Peace University and it teaches you how to pay off debt without getting too overwhelmed. My husband and I will pay off our debt by the end of December. I have tried consolidation many years ago and ended up paying around twice as much. DR has a couple of books as well you can get that I believe explains how to attack your debt to get out of it and stay out of it.

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answers from New York on

Generally speaking debt consolidation is a really bad idea, but it all depends upon how much you owe, how many creditors you have, what your current interest rate is, etc. There are some great articles on in the money section.

If your currently have a good credit rating (haven't had any late payments), do not consolidate. You're much better off on your own. Some of things you can do,..
Try calling the companies and see if you can get your interest rate lowered, tell them you're going to go with another company
If one of the companies have a much lower rate than the others, call and see if you can do a balance transfer, although you'll want to make sure you don't go overl 80% of your limit.
Don't wait until the due date to make a payment, send them in early if you have the money, remember each day that interest is accumulating.
Good luck.



answers from Minneapolis on

No advice since I've never used one of those services before but I'll be watching as I have two cards myself with a combined total of just over $2,000. I am trying so hard to get it pd off but it won't come down even though I don't use them anymore. So I know where you're coming from. I feel like I'm drowning and can't get out of it. Good luck and I hope you get lots of answers.



answers from San Francisco on

Hi Happy mom of 2- I'm in my early 30's and when I was in my 20's I had EVERY cc that you can possibly think of. Later on I was unable to keep up with my payments and I went through AAA Fair Credit Foundation, I think that they are located in Utah. They consolidated all of my debts to 1 single payment and it took me 4-5 years to pay it off. The starting debt has to be at least 10K mine was 30K. I am debt free today and learned my lesson to not have more than 1 cc. VISA is accepted everywhere and that is all that have with a limit of 1k. GOOD LUCK! :)



answers from Las Vegas on


Before going to a consolidation firm, try checking with your banks/credit unions you already use. I have a loan with State Farm Bank @6% fixed. Can't beat that! But you are on the right track by cutting back.

When things get out of control, I like to put everything on a spreadsheet so I can see who to target as a payoff first.

Best of luck.



answers from Springfield on

My advice is this:
#1 - cut up all credit cards
#2 - go buy or borrow or library a Dave Ramsey book - Financial Peace or Total Money Makeover
#3 - Ramsey yourself and hang in there

His plan is easy to understand and a practical approach. Read his book before you do anything. If you apply his approach - YOUR LIFE WILL CHANGE!

Please check it out! Everyone I know who has discovered his book and done it is amazed and wishes it was a graduation or wedding gift so they could have started their life that way.



answers from Chicago on

Hi, I had my debt consolidation done last year using the equity, and it did not reflect bad on my credit whatsoever. Infact all the debts were combined in one and my monthly outflow was lower than the combined ones as well as lower interest! Evaluate whoever you choose. Send me a private message I can refer to the one that helped me out.

Create a Great Day!



answers from Indianapolis on

My husband is a really good source to ask any questions you may have about improving your credit. He used to own a non-profit Hud approved credit counseling agency and helped so many with their loan modifications, home buying, and credit problems. Currently he is a licensed mortgage broker as well as a credit repair agent for a company called Financial Education Services. You can simply call him or email him if you like about any questions you may have. He's really knowledgeable and super helpful and kind. He loves to help people :)

Here is his contact information:
[email protected]

His name is AJ

Best of luck to you!



answers from Chicago on

I also agree you should try Dave Ramsey first. You have a few choices: buy his book, rent it at the library, take his class (this is the best one), to take his class all you have to do is go to his website & go to "find a class", plug in your zip code & voila a ton of locations will pop up for you to choose from. I took the class last winter & I have the book & CD's (great to listen to in the car)that you get when you take the class. You live about an hour from me but I would be willing to let you borrow them, PM me if interested.



answers from Chicago on

Dave Ramsey changed our lives!!!!!!! I cannot say enough good things about it. We had a lot of credit card debt and I felt like I was the only one worrying about it. My husband was totally checked out. I started listening to Ramsey on the radio (am 1220 out of Waukegan) and I was very interested in what he was saying. He talks a lot about how both people in the marriage have to be involved. So I got the book The Total Money Makeover and read it cover to cover in 3 days. Gave it to my husband and he read it in 4. And we were both on board. Dave has 7 what he calls "baby steps" to building wealth and NONE of them involve credit cards or borrowing money ever again. We paid off all of our debt in 8 months and it has strengthened our marriage, helped us change the way our kids think of money and made our family happier in general. Dave says that when you change this mindset and really work at finding money and working a budget that you will be blessed with a peace like no other and it is so true.
Debt CONsolidation companies will charge you tremendous fees to do what you can do all on your own if you put your mind to it. And where they take 5-10 years to do it, if you work very hard you could do it in 2. Don't hesitate to send me a private message if you have ANY questions.
Good luck



answers from Pittsburgh on

Dave (The Man) Ramsay advises heavily against consolidation. It can even wreck your credit. Get his book or watch his show and use the debt snowball technique and do the Baby Steps.
For now, if you don't have the ca$h--you don't need it. Cut up your cards immediately.

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