I'm 29 years old and will be 30 in September. I now have almost $4000 in credit card debt. Is anyone else's this bad or worse? I went on an out of control spending spree over the last two years or so because I had a mental breakdown likely due to dealing with this hairloss bs, never having had a gf and dealing with my father being diagnosed with cancer (he died recently). Is anyone else's cc debt this bad or worse?
OT: Credit card debt question
- Thread starter baldguy28
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hairwegoagain
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baldguy28 said:
The advice to cut up your card is excellent. Call the issuing bank and close the account. Do whatever it takes to pay it off as quickly as possible. Look at it this way, if your interest rate is 12%, then every dollar you pay is an immediate, certain, 12% return.
$4000 is a lot of money, but don't beat yourself up too badly. Most families in the US have much more consumer debt than you do. When I graduated college, I had about the same amount of debt that you do. Guess what I bought with my first several "real job" paychecks? I bought freedom from debt! Credit card and auto loan debt is what keeps most people from building wealth. If this situation prevents you from running a credit card balance ever again, then you're way, way ahead of the game.
Once you get it paid off, don't stop apportioning the money you were applying. Instead, direct it to an IRA or other vehicle to start building net worth. You'll be surprised how much you can accumulate over a few years - even with "small" deposits. It's all about time value of money. The key is consistency. Write a check to yourself each and every month. Don't skip just because you want the latest iPod or HD TV. Pay yourself first!
jumpedthegun
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to make you feel better, I'm 27 and my credit card debt was about 10 grand up until about three months ago. Now it's about half that, and I plan to have it paid off in the next three months or so. hopefully.
yeah, it sucks because i can't even remember half the stuff I bought. mostly expensive dinners, and other b.s. that i have nothing to show for. every time i cut a check to the credit card company for a grand, i think of everything i could be using that money for now if i wasn't such an irresponsible prick in years' past. though, the previous poster is right, it's a life lesson. i'm much more aware of "debt" now.
yeah, it sucks because i can't even remember half the stuff I bought. mostly expensive dinners, and other b.s. that i have nothing to show for. every time i cut a check to the credit card company for a grand, i think of everything i could be using that money for now if i wasn't such an irresponsible prick in years' past. though, the previous poster is right, it's a life lesson. i'm much more aware of "debt" now.
jumpedthegun
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oh, and i disagree with the idea of closing the account (unless you have absolutely no self control). the one good thing about my high debt is that once my card is paid off i'll have a credit limit of over 10 grand with no balance. part of your credit rating is your ratio between credit and outstanding balance. i'd pay off your card and keep the account open. another good thing is to get another card, preferrably one with a no-interest introductory period. then transfer your balance to that card so you don't accrue interest while you are making payments. then, when the card is paid off, you have two accounts with decent credit limits and no outstanding balance.
Johnny24601
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re:
This is a hairloss discussion group, but:
1) Try to consolodate your debt to a lower interest card or roll the balance onto a new card that offers something like "no interest on balance transfers for six months".
2) Do not miss a payment becauset his can hurt your credit score which effectsd your ability to purchase larger items later on in life.
3) I had about $5000 after college and felt so great after getting it out of the way. Keep chipping away and when you are free, you will feel so great.
This is a hairloss discussion group, but:
1) Try to consolodate your debt to a lower interest card or roll the balance onto a new card that offers something like "no interest on balance transfers for six months".
2) Do not miss a payment becauset his can hurt your credit score which effectsd your ability to purchase larger items later on in life.
3) I had about $5000 after college and felt so great after getting it out of the way. Keep chipping away and when you are free, you will feel so great.
hairwegoagain
Senior Member
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jumpedthegun said:
If you can avoid getting yourself into a balance situation - i.e., paying the card off in FULL each month - then sure, keep the card...but if your temptation is to apply more charges to the card before paying it off, then burn the SOB. Believe me, credit is easy to get...you won't have any problem getting a new card or five down the road.
The point of having a lot of open credit can in fact hurt you (i.e. cost you money). When you go to buy a house, this is a considered ratio. If you have a lot of spending (debt) power, you're a higher risk for mortgage default because the possibility exists that you might run those cards up. Since the cards must be serviced by minimum payments, your ability to maintain a mortgage schedule is interpreted less favorably. To what extent varies with many other factors...but it can result in an elevated mortgage APR.
The cardinal rule is as follows: If you don't have the money to pay for something in full at point of purchase, you don't buy it. I remember being mad at myself for paying interest on pizza and beer I'd consumed 2 or 3 years previously. I could have enjoyed vintage wine and filet mignon for what that crap cost me in the end.
Oh well, all good advice here. The point is you realize that you need to take care of it once and for all. A lot of folks never make that decision and are buried for life.