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Originally Posted by Venice
Hi I am an actor here in Venice and have been hustling work for the past three years. I took out two credit cards back in 2003 to help me get going and I owe about $17,000 dollars. I am now starting to make some money but have been making 150.00 payments monthly per card.
One of my cards, the bank is charging me 30% interest and major late fees. Both cards have been delinquent as far as late payments, but I have been trying to work with both companies as there have been times when I just didn't have any money.
My question is, is there a positive solution to make both parties happy without all of my money going to these super huge interest and late fees... it seems that none of my money right now is cutting down the debt, meanwhile the total keeps going up...especially with Bank of America. I'm not the kind of guy to just not pay, I borrowed there money and except that fact. But they are killing me with these outrages fees!
Any solution? I haven't tried a credit consolidation company, what do you think? Best Regards!
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I don't know if I would try a credit consolidation company - typically, they damage your credit and do only what you personally can.
Although the interest rate is terrible, I imagine that your balance keeps increasing due to the late fees, as they certainly add up very quickly.
Unfortunately, there isn't a whole lot you can do other than contact the companies and see if you can get your interest rate lowered - but if you are consistantly late but still paying, it would be unlikely.
I suppose you could try to see if you could get a second part time job or something to help you earn some extra money to at least start making your payments on time. Then, at least, you won't be hit with late fees every month.
Good luck, and if you have any more questions, let me know!
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Originally Posted by passthru
First, NoSoup, you've done a really good job providing timely responses to everybody's questions. This thread is a really good read for somebody like me who's relatively new to finances and credit.
I have two items on my credit report that are in collections. One I will be paying in full within a week. The other is over a year old and is something I was unaware of. It isn't really my responsibility, but at this point I don't think I can prove that, so I'm thinking I'll just pay it as quickly as possible.
I also have two revolving lines of credit. One is a payday advance with a low limit (something like $120) through my credit union. I haven't used it in a long time and don't forsee needing it. Should I close it? You've said a revolving line of credit isn't a very good way to build credit.
The other is a credit card through the same credit union, with a $2000 limit. I'm currently well over 50% of the limit, about $1750. It seems it would be beneficial to get a second credit card with a limit of $1000 to $2000 and transfer part of my current card's balance to the new card. Then I can pay them off individually while keeping both under 50% of the limit.
I should also note that the interest on my current card isn't very bad. It's 11% BUT if I make the minimum payment each month (which is no problem) I am not charged interest for that month. Anyone else reading this, I highly recommend talking to a credit union in your area to see if their credit card policies are as nice as this, it could help a lot.
Am I overlooking or forgetting anything?
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In your situation, I would leave loan open and keep your current credit card. Although opening a new card and transferring a portion of the balance would get you below the 50% mark, I'm relatively certain the difference in your credit score will be nominal with the collections out there.
I'd pay those off as quickly as possible. However, if you truly aren't responsible for the second collection and it is a big enough amount, I'd fight it. If it's in collections, there's paperwork on it somewhere, and if you aren't responsible you should be able to get it removed. However, I caution you - just because you don't
feel responsible doesn't mean anything - if you agreed to pay it, it is your responsibility.
As far as your credit card is concerned, I'd look again. Perhaps you are correct, but I kinda doubt it. I think it is more likely that the person explaining it to you neglected to make sure they explained it correctly.
With most, if not all credit cards, the interest that you would have paid is waived if you pay the balance off in full by the due date. I've never heard of one that just waives the interest if you make your payment on time. I'd check with your credit union again - however, at any rate, 11% ain't bad.
If it
does in fact work the way you said it did, perhaps I should join your credit union
