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| trixiezzz |
 Posted: Wed Feb 23, 2005 7:42 pm Post subject: This month's Reader's Digest cover: Debt Free For Life |
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Investing Manager
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There's a really good series of articles in this month's Reader's Digest about this very topic ~ getting out of debt for beginners.
According to their research, the 3 critical steps are:
* Get organized: Keep track of everything you spend, pay bills on time.
* Negotiate with creditors: get rates lowered.
* Work a second job or other income-producing measures to pay bill off faster.
March, 2005 edition. |
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| alicia gist |
| Posted: Thu Feb 24, 2005 1:15 pm Post subject: negogiating lower rate |
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Investing Sr. Associate
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| I don't get Reader's Digest. Do they say anything about how to negogiate? We have a credit card with an extremely high interest rate. We have called to ask to have it lowered twice and both times they say there is nothing they can do. We have transferred some of the debt to a lower interest rate card, but it still irks me that they won't lower the rate. I pay on time everytime. |
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| paula0000 |
| Posted: Thu Feb 24, 2005 5:40 pm Post subject: |
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Investing Manager
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| We have gotten a better rate when I called up the cc company and told them to cancel the card. They ask why and I told them they interest rate was too high. They then shaved off 5%. |
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| ammo |
| Posted: Fri Feb 25, 2005 9:18 am Post subject: |
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Investing Sr. Associate
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| Yeh, Say you just want the card Canceled, then im sure they will do anything to keep you with them, thats a great technique right there, well done for thinking that up. |
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| chop456 |
| Posted: Fri Feb 25, 2005 12:55 pm Post subject: |
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Investing Sr. Associate
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| These basic principals make sense. I think when there is alot of debt involved, you also need to prioritize which debts should bepaid off first and concentrate there on them. Pay minimal amounts to the other debtors, so you can see results. |
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| paula0000 |
| Posted: Sun Feb 27, 2005 3:42 am Post subject: |
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Investing Manager
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| when we've tried in the past to get out of debt- we've started with the highest interest debt adn paid that card off first. Then the next - and so on. With any extra money, we piled it on the card. |
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| trixiezzz |
| Posted: Mon Feb 28, 2005 5:25 am Post subject: |
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Investing Manager
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One sure-fire way to get your interest rate lowered is by calling and telling them that you've received other credit card offers with lower rates and that you're planning on transfering the balance.
Usually, they'll counter offer a lower rate to match their competitors cards rates. |
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| moneytree |
| Posted: Wed Mar 02, 2005 6:09 pm Post subject: |
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Investing Sr. Associate
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Yep, we've used that strategy....telling them we are transferring our balance. It worked!  |
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| alicia gist |
| Posted: Thu Mar 03, 2005 1:59 pm Post subject: |
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Investing Sr. Associate
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| We'll give it a try. We've called a couple of times and get some grouchy person. Maybe if we try on a Friday we'll get somebody in a better mood. We're planning on canceling that card as soon as we can. |
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| crisrn2003 |
| Posted: Thu Mar 03, 2005 7:58 pm Post subject: |
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Investing Associate
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| paula0000 wrote: | | when we've tried in the past to get out of debt- we've started with the highest interest debt adn paid that card off first. Then the next - and so on. With any extra money, we piled it on the card. |
I have a friend who went to a seminar---their suggestion was that you pay the minimum on each one except the one with the lowest amount. You pay the most on that one until its paid off. When that happens, you take that amount plus the minimum on the next smallest card until you pay it off, and so forth.....I am involved with a credit couseling agency and THEY suggest paying the most on the highest interest rated cardsthen when it's paid off, adding that amount to the minimum on the next highest interest rated card. I guess its just preference. Either way, I would find one method and stick with it. |
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| jeepgirl30 |
| Posted: Fri Mar 04, 2005 10:54 am Post subject: |
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Investing Sr. Associate
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I want to get out of debt. I called a credit counseling service but they want to charge like $40 per month. They can't promise to save me much more than I can do by calling and lowering the rates myself. Plus if i go through them they cancel all cards and it goes on my credit report.
I cut up my cards and now just plan to pay them off. |
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| raven3517 |
| Posted: Mon Mar 07, 2005 6:58 am Post subject: |
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Investing Associate
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| Thanks for posting about this! I don't subscribe to Reader's Digest, but I think I'll make a point to go and pick this up off the stand - I'm always interested in articles about how to be more financially stable. |
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| alicia gist |
| Posted: Wed Mar 09, 2005 3:24 am Post subject: |
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Investing Sr. Associate
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| Just wanted you to know we made a third call on that high interest credit card. I didn't want to say it, but the interest rate was 29.40% (ouch). They lowered it to 14.99%. Yipee!! I guess you just have to talk to the right person. |
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| keokagal |
| Posted: Wed Mar 09, 2005 11:32 am Post subject: |
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Investing Sr. Associate
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Now Alicia, next cc offer for a low percent for the life of the balance transfer, take it and get rid of the other cc. They are tooooo greedy.  |
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| trixiezzz |
| Posted: Wed Mar 09, 2005 4:57 pm Post subject: |
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Investing Manager
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| jeepgirl30 wrote: | I want to get out of debt. I called a credit counseling service but they want to charge like $40 per month. They can't promise to save me much more than I can do by calling and lowering the rates myself. Plus if i go through them they cancel all cards and it goes on my credit report.
I cut up my cards and now just plan to pay them off. |
I have also heard that it really hurts your credit report ~ often it's as bad as a bankruptcy. |
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