New here and need advice

iVillage Member
Registered: 10-16-2009
New here and need advice
8
Fri, 10-16-2009 - 1:41pm

Hello Everyone;


Well I've gone on here quite a few times so I decided to post. I am 32 single and have racked up 15k in credit card debt which is killing me b/c I can only make the minimum payments b/c they amount for over a paycheck a month. I also have a car payment which is only $266 what killed me is the hikes in the CC's. I have an IRA

iVillage Member
Registered: 10-09-1999
Fri, 10-16-2009 - 1:53pm

Hi, glad you are joining us.

iVillage Member
Registered: 10-16-2009
Fri, 10-16-2009 - 2:08pm

The low down:


Ok here we go. The biggest problem is a card I racked up 11k on the others I was paying down then using b/c I kept having car troubles so much so that its what racked up most of the 11k. I have TOTALLY STOPPED using the cards. I put them away and don't bring them out of the house with me. As for sell anything I don't know, I bake cakes but in CT you must have a seperate kitchen to have a home bakery.

iVillage Member
Registered: 04-09-2003
Fri, 10-16-2009 - 2:59pm

I do agree with not taking it out of your IRA. It is too easy. I know someone who took out a 401k loan to pay off cc and within 6 months ran them back up again. If an emergency comes up, you may use the cards

iVillage Member
Registered: 07-02-2008
Fri, 10-16-2009 - 4:03pm

Any way you can get/take a second job for a few months to get ahead on these cards? Holidays are the best time to find retail work. Most stores have evening hours (if you have a day job) or vice versa. Even if its just temporary this way you might have extra for paying down debt a little quicker or for holiday gifts.

Any expenses you can cut out JUST FOR NOW? I know when people say - cut cable or drop your cell phone packages to the bare minimum - that sounds crazy to some people but if you allow yourself to do that for say 6 months you will have that money saved for credit cards.

What is going on with your car that you are having major car repairs? Sorry to hear that.

iVillage Member
Registered: 10-16-2009
Mon, 10-19-2009 - 10:33am

Thanks for the insight everyone.


My car isn't having trouble anymore b/c I got a new one over 6 months ago but built up debt b/c of two used lemons that really broke the bank.

iVillage Member
Registered: 08-04-2008
Mon, 10-19-2009 - 1:52pm

Ok here are a few tidbits and a few ideas:


1.




iVillage Member
Registered: 05-21-2003
Mon, 11-02-2009 - 3:18pm

NOOOO, do not use your IRA. Do whatever, but do not use your IRA. And where does all that Credit Card debt come from? You are doing something wrong and you know it, now we need to find a way to make it right. Usually it is not our big purchases (like cars and houses) that get us in trouble, it's the little stuff we just lose control over. Paying off your debt has a lot to do with being aware of what you are doing in your daily life and knowing where your money goes, and I am pretty sure this is the area, that we need to target.

And here is the deal, generally it is not a good idea to pay off debt with debt, but if you can get a personal loan from the bank of the amount of the credit card debt, you at least lowered your interest payment and with that probably your monthly payment, but you need to be aware of the fact, that you can't use those credit cards again.

iVillage Member
Registered: 11-17-2007
Mon, 11-23-2009 - 8:19pm

Hello


I come from the old school of managing money I don't know if it is always the right school but it is all I know.


I believe in 401k I think they are great but I see so many people coming to the board with a huge amount of money in them at an early age. Which if you don't have debt this is great. But the same people always have debt because life is life and things happens Like lemon cars.


Here is my advice starting next year take the amount that you are putting into the 401K down to about