best way to pay off credit card debt

Coby7 · April 8, 2017

Only advice I have is; Consolidate all your cards with a personal loan or get a credit line if you can then cut-up 3 credit cards and don't use the other one unless it's an emergency until the personal loan has been paid off. It's going to be tough for a few months put you'll pull through.

steveo2155 · April 8, 2017

So I checked out the discover personal loan website that one of you mentioned. I'm assuming it is just the discover credit card company that does personal loans? I have never heard of such a thing until someone mentioned it here. I thought you had to go to a bank for this? I had looked into a personal loan at one of my local banks but the max term was 36 months which would have put my monthly payment pretty high. The discover personal loan sounded like they can go more than 36 months which is appealing to me because I would like a little bit of a lower minimum monthly payment, even though I plan on making much more than the monthly payment, you never know there may be a month or two where money is tight that it would be nice to have a lower min. payment. Has anyone here ever done one of these loans? What is the catch? It seems too good to be true.

66deadhead · April 8, 2017

So I checked out the discover personal loan website that one of you mentioned. I'm assuming it is just the discover credit card company that does personal loans? I have never heard of such a thing until someone mentioned it here. I thought you had to go to a bank for this? I had looked into a personal loan at one of my local banks but the max term was 36 months which would have put my monthly payment pretty high. The discover personal loan sounded like they can go more than 36 months which is appealing to me because I would like a little bit of a lower minimum monthly payment, even though I plan on making much more than the monthly payment, you never know there may be a month or two where money is tight that it would be nice to have a lower min. payment. Has anyone here ever done one of these loans? What is the catch? It seems too good to be true.

The catch is probably the interest rates and the terms of borrowing. A lot of times if you are late on just one payment your interest rate will go sky high, putting you right back where you originally were... in debt.

I would definitely read the terms carefully, and the small print. Credit companies are in business to make money from you, not get you out of debt.. If at all possible I would try to work with your bank on some sort of a personal loan that you can make work.

SnakeEyeSS · April 8, 2017

I like the saying "if it's not in your bank account, you can't afford it". That will diminish most spending problems if you actually follow it. No one needs Starbucks, no one needs a new car, no one needs most things they buy.

StillOffshore · April 8, 2017

Not trying to be an ass...but if you're scoffing at a high payment just because it takes all of your extra money...you may never pay off the debt. Tighten the belt, get rid of anything extra...eating out, cable, quit driving, ride a bike or walk, take the bus...if you have an extra nickel, send it to them. Otherwise, taking a lower payment because it's easier...well, get used to being in debt.

Paying off high interst debt is difficult. Get used to the BARE MINIMUM for yourself.

dasimmon · April 8, 2017

Look up Dave Ramsey.... Sage advice

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+1

ducklawyer · April 9, 2017

Follow Dave Ramsey - you'll be debt free in no time.

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Dnt · April 9, 2017

+3 on Dave Ramsey Financial Peace University. You do not have to sign up just go to a used book store you can buy one of his many books for a couple of bucks and listen online to a few programs. Like Dave says you have to be in control of your money not have your money controlling you. As Corny as it sounds you need to do the BABY STEPS program

https://www.daveramsey.com/fpu

muddkatt · April 9, 2017

So I checked out the discover personal loan website that one of you mentioned. I'm assuming it is just the discover credit card company that does personal loans? I have never heard of such a thing until someone mentioned it here. I thought you had to go to a bank for this? I had looked into a personal loan at one of my local banks but the max term was 36 months which would have put my monthly payment pretty high. The discover personal loan sounded like they can go more than 36 months which is appealing to me because I would like a little bit of a lower minimum monthly payment, even though I plan on making much more than the monthly payment, you never know there may be a month or two where money is tight that it would be nice to have a lower min. payment. Has anyone here ever done one of these loans? What is the catch? It seems too good to be true.

I have used them one time. Interest rate was about 9%. It took about 10 minutes on the phone to get approval. They funded the loan overnight and the money was available the next day. I was remodelling a kitchen and it was a quick easy way to obtain financing without having to get an appraisal for a home equity loan and waiting weeks for bank approval.

I don't remember off hand how long the loan was for, but seems like I did a 60 month to allow low payments knowing that I would either refinance the house afterwards or sell it.

Its not really any "catch" to it, just higher interest rates than secured loans, but cheaper than typical credit card rates. I was happy with them is why I mentioned it. I would use them again if it fit my needs at the time.

Heavy 5.7 · April 9, 2017

What is a discover personal loan? Also my highest card has $7k on it with high interest like 22 -25 percent.

Discover "personal loans" rates are between 7 & 25% APR according to their website, certainly not a good deal. You are already paying 25% is that some type of a default/penalty rate?

I have used them one time. Interest rate was about 9%. It took about 10 minutes on the phone to get approval. They funded the loan overnight and the money was available the next day. I was remodelling a kitchen and it was a quick easy way to obtain financing without having to get an appraisal for a home equity loan and waiting weeks for bank approval.

That's crazy! You paid twice the average HELOC rate because it was faster?

I got plenty of money to lend @ 9% you just LMK. Lol

muddkatt · April 9, 2017

That's crazy! You paid twice the average HELOC rate because it was faster?

I got plenty of money to lend @ 9% you just LMK. Lol

Remember your offer when I ask for the loan.....

It made more sense to get that loan than any other type. I didn't need it long term, just long enough to have kitchen remodelled. Why would I want to pay loan origination fees, appraisal fees, etc., when 3 months later the house would have a much different value. FYI, there is no charges except for interest, and no early payment penalties.

Every person has different needs and there are numerous solutions to every need. I mentioned this to the OP so that he could see if it would work for him. I checked and I was charged 7.99%. I had no idea that they went to 25% APR. If that would have been the case, I would have either put it on a CC, or refinanced another asset. Hard money lenders would want too much in my situation. Refinancing the house is expensive with all the cost involved, and not worth it for a short term fix.

O_J_Simpson · April 9, 2017

Discover "personal loans" rates are between 7 & 25% APR according to their website, certainly not a good deal. You are already paying 25% is that some type of a default/penalty rate?

That's crazy! You paid twice the average HELOC rate because it was faster?

I got plenty of money to lend @ 9% you just LMK. Lol

You forgot one important thing. People who take out loans like this are 1-2 paychecks away from bankruptcy. Far from a sure bet you will get paid back plus 9%..

barry G · April 9, 2017

I didn't use a card until I was 42.

hated the thought of it.

I stayed as sneaky as possible.

whatever I am buying better be worth double the cost, etc.

I then learned some actually help a ridiculous veterans tale like my own.

made it even easier.

the little cards with high interest, they suck.

a bigger company, you'll know when you got one.

the interest is always lower.

some big ones suck too. I am not liking my Amazon/Chase combo. (TERRIBLE)

I already did consolidate routine etc. I don't have big debts.

Edited April 9, 2017 by barry G

arkenzo · April 9, 2017

A personal loan at 9% for that short term was a good deal, while LOC's are ideal for home remodeling and such, they do take some time to get and you have to go through a checklist before you are even funded, definitely not a "Discover over-night-fund" loan that's for sure.

Duramaxsky · November 8, 2020

A lot of good advice here. The most important one is stop using them completely. They charge you interest they day you make the purchase. The minimum payment is almost all interest. Any extra goes straight to the balance. Credit cards can be a good thing if you pay the whole balance every month. EVERY MONTH!!! I have a card that gives me 1 to 3% back on everything. Since I pay them no fees or interest it's a good deal. The merchant is paying for it. If they don't offer me a cash discount I will get my small discount that way. If your credit is not great that will hurt your credit score because they take the balance on a certain day each month and it never shoes paid off. Having several cards so your balance percentage is lower helps. You do need to use them at least 1 time each year so they don't close them. Buy again I will say don't use them at all until you pay them off. No exceptions. If you must use one get a new one and only use it. Pay it in full every month. Every month. No exceptions. As others have said if you can't pay cash you likely don't need it.