Irnldy001

Hi all
Haven't posted in a bit but things are holding steady (sort of). I'm at a home with a work related injury but I will be ok.

I've not written about this particular shame of mine before, but I wondered if any of you could chime in if you are in a similar spot and/or were in the same spot and climbed your way out.

While drinking (I should add I'm a year and a half sober)
I had a nasty habit of online shopping. The boxes would arrive - lovely clothes, gadgets, and apparently in one fit of shopping I purchased very expensive coffee. I returned what I could. The rest of course was mine to 'cherish'.
I have been diligently paying the two credit cards, but at this rate it will be another three years before I can see digging out of this. I put as much as I can into the payments, but sometimes I am just making a payment that is 75% interest and 25% principal. I committed to my husband a long time ago that this was my debt and I'd deal with it.
Of course like every other human, I have other expenses to deal with. I contribute to the household monthly expenses and child related activities.
I hate that they all have to pay for what I did. So much about my life has gotten better, but not this. This continues.
If this works as a daily reminder for anyone else - please go ahead and use it.
If you did this also - how did you get to 'paid off' and still get around to everything else? I am also asking because it appears both my kids need to start wearing braces - huge sums.
Any advice? Anyone?

Pipefish

Hello there

Would it help any to find long-term 0% balance transfer deals? You will generally need to pay a percentage admin fee, but at least the interest is static, so long as you keep paying it off. These are regularly touted in the UK, not sure if it's the same in the US, but may be worth looking into? Alternatively, consolidating the debt into a lower interest, longer-term loan?

Wish you well

Maudcat

A good friend got into a lot of cc debt because of some unwise big ticket purchases. She worked with a relative, who is a debt counselor to work out a payment plan with the companies. I believe they did a debt settlement as well, with the companies forgiving some of the debt. It wrecked her credit score, of course, and she only just was able to open a checking account, some five years later. But she now uses a debit card only for purchases and is debt free. Maybe a credit counselor could help?

emme99

Hi Irnldy
I have been in and also am currently in this situation. A couple of years ago I took out a personal loan with my bank at a low APR and consolidated all of my outstanding debt so I just had one payment over 4 years to pay off. I have since acquired more credit card debt and am considering going back to the bank to see if I can renegotiate and add the additional debt to the loan and extend the term.

I have also done the 0% balance transfer offers you just have to keep track because sometimes the percentage rate is pretty high after the offer ends if you don't have it paid off by then.

Best of luck whatever you decide.

Optimist4ever57

I was in a very similar situation. I've been supporting my grandson for quite a few months and had maxed out one of my credit cards. I found a site with 0% interest cards ranging anywhere from 12 months to 21 months.

I applied for 3 and was accepted for quite a large credit line. I transferred the debt to the 3 0% cards and have created a payment plan so I will get them all paid off without paying any interest. Now, my credit score was excellent so that helped. If your score is less than perfect, I second the credit counselor. Or perhaps your husband can apply and you take the responsibility of paying?

Hope you soon find a method that works for you...

Irnldy001

I've considered the options above, but I shied away at ruining my credit score. Because I've been able to make payments, we continue to live very frugally. My husband is against any form of debt consolidation involving the house and I don't blame him.
I have been looking for lower interest cards to transfer to, but feel very lost in it. As in, we will give you a 1.9% rate for 6 months but then we jack you up to 24%. With one of my current cards, I was able to negotiate them down to 11% from 19.5%. The other one nothing.

Irnldy001

I hadn't considered the personal loan from the bank at a lower rate and then paying off the cards, and having one lower fee that pays off more principal. Will be speaking to my bank on Tuesday!
Thank you SR - all suggestors - I needed this.

Hawk07

I did the exact same thing when I was drinking. Almost 3 years later i'm just about half way through paying it all off. You can try transferring the debt to another card/company that has a 0% interest promotion for a year. Be wary of what it jumps up to when the promotion is over though. If you get to a point where you feel like you could easily pay it off in one year with 0% interest that might be a good option. One thing i've been doing is selling things on e bay. It's easy once you get the hang of it and you'd be amazed at what you can sell. This year i've made on average $100 a month and that all goes to paying off the credit card.
Most importantly, always try to pay more than the minimum amount due.

EndGameNYC

I got into serious credit-card debt when, at first, I was forced to work less when I was drinking, and then later, when I couldn't work at all.

To me, using a low-interest loan or credit card to pay off my debts seemed more like changing cabins on the Titanic in order to get additional amenities or a better view.

I went to credit counseling and paid a single monthly amount that covered all my payments. So I lived on the financial edge for four years instead of about fifteen years making mostly monthly minimum payments. My credit rating improved during and after the process.

Operating every day under the shadow of extensive credit-card debt is no way to live. When the inevitable financial emergency occurs, you'll only go further into debt, and the longevity of your indebtedness will only increase. Like offering a drink of water to a fish, it doesn't matter that you've got a great credit rating when it would be foolhardy to make a major purchase anyway, even if you could afford to do so, which seems not to be the case.

You have nothing to lose by making an initial consultation, which is often free of charge. Just be certain to choose a reputable firm.

Berrybean

I spoke to the bank (scary stuff) and got it put into a loan that at least was being paid off over time. Still crippling but at least some light at the end of the tunnel.

You have nothing to lose by speaking to them.

Mystary

If you can't get a low rate interest loan, just make the minimum payment to one credit card and pay the extra to the other. Once one card is paid off, put it all on the other. I like instant gratification so I usually start paying off the credit card with the smallest amount owed first.

Soberpotamus

This is how I am paying mine down. I paid off all the smaller ones and now I am kinda stuck with the large ones. Not much instant gratifucation going on now, lol.

Now I face a transmission replacement in my SUV. It is going to set me back for a while. Feeling very down about it.

Delilah1

I am working on paying mine off as well. My debt had nothing to do with drinking, just poor decision making! Another habit I have changed in the past few months. I have a five year plan to be debt free (not including my mortgage).

Anna

I'm sorry to hear that you're struggling with this. It's great that you've been sober for a year and a half! It's unfortunate that some of the messes we make cannot be easily cleaned up. Stay positive and strong and I hope you find a way to make it a bit easier to get through this.

Dee74

I have no credit cards and so no advice but I'm wishing you the best too lrnldy

D

Ooona

I signed up for and completed a program called Financial Peace University ( daveramsey.com). Dave recommends paying down debt using the Gazelle method which is to pay minimum payments on ALL except the smallest one. Pay that one off in full or as fast as possible. Take the money you put towards that one and then pay the next smallest off while paying minimum on all others. Once that one is paid off take what you put towards the first and now the second and put towards the next one and minimums on all others and so on. Keep going until they are all paid off. It will take some time but it can be done!

Make a list of all of your debt from the smallest to the largest balance. That would be how they would paid off ( smallest to largest). The psychology behind it is that the feeling of success from paying off any of them will feed into your determination to continue paying off.

Someone mentioned selling things. When I was in Gazelle mode with paying off debt I had a sale at my house and put a price tag on virtually everything ( except the kids and dogs lol!). I literally sold some of my furniture and a ton of other things, raising several thousand dollars, I threw it all at my debt.

I was completely debt free with two years. The only debt we have is our mortgage, which we refinanced but continued to pay double payments, its set to be paid off within 8 years.

The most important thing I did was to cut up ALL of my credit cards. I have a card connected to our checking account that can be used for hotels, travel or online purchases and if we dont have cash, we just dont buy. I had to get honest with myself that I cannot control my use of credit cards and so I just cant have any.

Best of luck. Its possible to get back in control but it takes ALOT of hard work and commitment!