Greg asked:
I currently have a large amount of credit card debt, with high APR’s and are almost maxed. I have about 50% of the cash needed to pay off my balances.
I currently have a large amount of credit card debt, with high APR’s and are almost maxed. I have about 50% of the cash needed to pay off my balances.
Should I pay off the highest APR’s? pay each card to 50% of its credit limit? or something else.
Also can I negotiate my APR lower if I pay the credit card down to 50% or is it a futile attempt.
Thanks
I would pay off one and then I have just one to concentrate on. It would feel better for me. Don’t know about you, though.
To increase your credit rating pay half of each. To save money pay off the ones with the highest rates first. If you have already trashed your credit rating you can call each one and ask them to lower the rate and keep those who do and offer a settlement to those that won’t
You benefit most by paying off the highest APR card in full. But, in doing so, you must remember to also make the minimum monthly payments on the other cards.
By using this approach you reduce the amount of interest you will pay, and you also avoid any punitive actions by the other card issuers, because you made payments to them on time.
Once you have paid off the highest APR card, try not to use that card for any future purchases, and focus on repaying the next highest APR card, while continuing to make the monthly minimum payments on the other, lower APR cards.
You are most likely to be successful negotiating a lower APR if your balance has been paid in full. The card company has access to your credit bureau records, so they know that you have a large amount of credit card debt (both on their card and the cards issued by other banks or card issuers), and know that most people in that situation can’t pay off the debt and therefore have no choice but to pay a high APR.
But, once you have paid off a card, or two, in full, they will be more willing to consider lowering your APR.
For more information and advice on these types of questions, visit.
You have some excellent questions. You know my wife and I were deep in debt for so many years and we even tried some debt consolidation agencies, but they are all out there to make some money. I will tell you what, getting debt paid off is hard sometimes but is very possible. I got my Bachelor degree in Finance for this specific purpose. To reduce our debt. I have written an article that is all about getting rid of that debt and I hope you take a moment to read it. This reduced our debt to zero within a couple years. If you are looking for quick debt relief the only thing that will happen is further debt by getting loans or paying someone to take care of it for you. Don’t do that, it is all right in my article what you need to do and the best part is that it is totally free advice. Can’t beat that. In addition, it will answer your questions for the most part. I speak specifically to APRs and contacting credit agencies. Good luck.
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