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Originally Posted by KellyC
Oh god, this is all very depressing to learn. If I had know about this I wouldn't have spent so much. Ok, a few more questions.
Regarding all those agencies/organizations that offer to help you lower your CC debt, do they work? I hear nightmare stories about them. But with all this new info, I'm starting to really worry. Should I contact one? If so, which is a good one?
Guccilvr, my CC issuer is Boeing Employee Credit Union (BECU), the largest "nonprofit" credit union in WA and they're fucking me up the ass. (P.S. I already called to freeze my limit).
I'm trying to save up so I can study in Japan in the upcoming Spring quarter but looks like it's not gonna be possible anymore.
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You SHOULD have known about this. Look carefully at your credit card statements. See how little your balance is reduced each month after paying only the minimum payment. Do the math, take the monthly balance reduction and determine how long it will take to pay off your loan at that rate.
One reason credit card interest rates are so high is that this is unsecured debt. Meaning there is no collateral to back it up if the customer defaults on payment. If you default, this is a complete loss to the CC company, unlike a car loan or a mortgage. Most consumers do not read their account terms when they sign up for a credit card. Read yours now, it will scare the shit out of you. Not to stick up for CC companies though, once they have a someone on the hook, they'll increase the credit limit. Just like drug dealers giving away free samples to get users hooked, they make it easy to get credit. And easier to continue getting it. Then you're hooked on it and it takes a long, long time to get out from under it.
Be careful of your credit rating. Once it gets impaired it will effect you for years. You may not be able to get a loan, or if you do it will certainly be at a higher rate than consumers with a good rating.
good luck