Low Credit Score Means Large Credit Card Debt
Credit cards are easy ... too easy. The little applications come to you in the mail already filled out, and all you have to do is sign your name and you're in. At first it seems too good to be true.
The card finally arrives and what do you do with it? You go buy stuff! Stuff that you probably do not need, or maybe you do need it. It does not instantly hit your checking account so you lose track of the spending and then you get the bill and need a paper bag so you do not faint.
The debt just grows and grows, you like spending and finally realize you are stuck. You are living how you should not, just charging everything - and then you are trapped with credit card payments that just escalate for the next fifteen or twenty years of your life. Thankfully, there is a way out.
They way out is to repair your past mistakes. Get rid of the credit card debt. Call the card company and ask them to work out a payment plan with you. Most of the time they are interested in getting their money back just like you are, so you can probably strike a deal for a reduced interest rate in exchange for a larger payment.
So you hang up the phone feeling relieved; what next? Take your scissors and go to work on the credit card. Keep the number in readable shape or write it down in case you have to verify your account later on. Afterwards, hide it somewhere you will not be bothered to look for it and rest assured your spending days on it are over.
As you make your payments on your credit card debt, you might still be hearing from other agents. Resist the urge to yell at them - they are people just like you trying to make a living, just their living is a lot more stress-inducing than yours. Instead, tell them that you are on the path to fixing your debt problem, starting with one of your large accounts.
Whatever you do, do not give them the details of your other agreements. If they have the conversation recorded you could be in legal trouble, not just financial trouble. Be willing to work out a plan but make sure they understand you need to be in charge of the details as you have to pay more than one bill.
After all these arrangements, there might be another bill that you forgot about. If you cannot pay, don't lie. Apologize to them. Let them know that you have made arrangements with however many other places, and your income is fixed, but you will be happy to call them monthly to update them on your status. Stay in touch so they know your intentions, and you may find the collectors working on YOUR terms!
The card finally arrives and what do you do with it? You go buy stuff! Stuff that you probably do not need, or maybe you do need it. It does not instantly hit your checking account so you lose track of the spending and then you get the bill and need a paper bag so you do not faint.
The debt just grows and grows, you like spending and finally realize you are stuck. You are living how you should not, just charging everything - and then you are trapped with credit card payments that just escalate for the next fifteen or twenty years of your life. Thankfully, there is a way out.
They way out is to repair your past mistakes. Get rid of the credit card debt. Call the card company and ask them to work out a payment plan with you. Most of the time they are interested in getting their money back just like you are, so you can probably strike a deal for a reduced interest rate in exchange for a larger payment.
So you hang up the phone feeling relieved; what next? Take your scissors and go to work on the credit card. Keep the number in readable shape or write it down in case you have to verify your account later on. Afterwards, hide it somewhere you will not be bothered to look for it and rest assured your spending days on it are over.
As you make your payments on your credit card debt, you might still be hearing from other agents. Resist the urge to yell at them - they are people just like you trying to make a living, just their living is a lot more stress-inducing than yours. Instead, tell them that you are on the path to fixing your debt problem, starting with one of your large accounts.
Whatever you do, do not give them the details of your other agreements. If they have the conversation recorded you could be in legal trouble, not just financial trouble. Be willing to work out a plan but make sure they understand you need to be in charge of the details as you have to pay more than one bill.
After all these arrangements, there might be another bill that you forgot about. If you cannot pay, don't lie. Apologize to them. Let them know that you have made arrangements with however many other places, and your income is fixed, but you will be happy to call them monthly to update them on your status. Stay in touch so they know your intentions, and you may find the collectors working on YOUR terms!
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posted by Credit Counseling at
11:27 AM
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