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Originally posted by FaderMonkey
- No, I don't own a home, I rent an apartment.
- Yes, I am just making minimum payments.
- Other than credit debt, I have student loans I'm still paying back.
- I don't think my credit score is very good, but I don't know for sure. A couple of my credit cards have been lowering my credit limit as I lower the balance. I was late on a some payments a few months ago, but I've been pretty good about it lately.
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This is a difficult situation. A lot of you decision should be based on your income. If you are still "keeping up with the Jones'" and making just the minimum payments, forget the Jones'. If you are pretty much barely getting by with minimal unnecessary expenditures, bankrupcty may be an option for you.
However, if you are expecting a pay increase, a new job, or an apartment with less rent is feasible, or you can cut other expenses and apply the additional funds to the credit cards, I would recommend doing that. If you feel alright about taking the inititive and contacting the credit card companies yourself, I would do that as opposed to credit counseling, but if you prefer that they do it, that's fine as well.
Simply pick the credit card with the least favorable terms (ie Interest rate, annual fee, ect.) Make only the minimum payments on all other cards and put every penny you can on that specific card. Once it is paid off, simply pay the extra money on the next card, knocking them off one by one.
I hope this helps!