Comments on: How We Got Out of Credit Card Debt http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Thu, 24 May 2012 17:31:52 +0000 hourly 1 http://wordpress.org/?v= By: Steve "The Credit Card Debt Relief Man" B http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/comment-page-1/#comment-129543 Steve "The Credit Card Debt Relief Man" B Tue, 14 Aug 2007 17:13:58 +0000 http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/#comment-129543 When all of your money is going to principle it is very easy to pay down debt and would not be a problem for anybody at all. It's when they get ya suck at 28% or more, this is where they want you. With those kind of interest rates even a rather small amount of debt will take forever and cost several thousand in interest. The example Greg gave above shys in comparison to what the picture would look like with the interst rate at 28% or more. Even if the minimum payment percentage was 2. One way to avoid the interst rates going that high is to never go late on any payment you have that gets reported to the credit bureaus. Going late with one of your cards or anything else can put you at risk of having everyone of your cards interest rates to skyrocket. When all of your money is going to principle it is very easy to pay down debt and would not be a problem for anybody at all. It’s when they get ya suck at 28% or more, this is where they want you. With those kind of interest rates even a rather small amount of debt will take forever and cost several thousand in interest. The example Greg gave above shys in comparison to what the picture would look like with the interst rate at 28% or more. Even if the minimum payment percentage was 2. One way to avoid the interst rates going that high is to never go late on any payment you have that gets reported to the credit bureaus. Going late with one of your cards or anything else can put you at risk of having everyone of your cards interest rates to skyrocket.

]]> By: Greg Hampton http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/comment-page-1/#comment-99974 Greg Hampton Thu, 26 Apr 2007 16:55:58 +0000 http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/#comment-99974 The minimum payment is one of the most misunderstood and poorly explained principles of credit cards. In 2005, new regulations forced credit card issuers into increasing the minimum payment percentage so that at least a small portion of the monthly payment would go toward the balance. Unfortunately, this percentage is difficult to find and is not listed in most terms and conditions. Call your issuer to find out the percentage used for your account, then use a rate calculator to figure out how long it will take to pay off your balance. You may be shocked to find how long it will take to pay off the balance by just paying the minimum. For example, if you have a balance of $5,000, an interest rate of 15%, and a minimum payment percentage of 1%, you will pay approximately $112 per month. It will take almost 26 years to pay off your balance and you will pay $5,974.97 in interest. If you increase your payment by just $38 to $150 per month, it will take less than four years to pay off the balance and you will pay $1,508.52 in interest. If you are only paying the minimum, you are probably paying more in interest each month than you are toward your balance. The only way you can pay off your debt is to pay more than the minimum. The forum at www.Lowcards.com has good tips for getting out of debt and general credit card information. The minimum payment is one of the most misunderstood and poorly explained principles of credit cards. In 2005, new regulations forced credit card issuers into increasing the minimum payment percentage so that at least a small portion of the monthly payment would go toward the balance. Unfortunately, this percentage is difficult to find and is not listed in most terms and conditions. Call your issuer to find out the percentage used for your account, then use a rate calculator to figure out how long it will take to pay off your balance.

You may be shocked to find how long it will take to pay off the balance by just paying the minimum. For example, if you have a balance of $5,000, an interest rate of 15%, and a minimum payment percentage of 1%, you will pay approximately $112 per month. It will take almost 26 years to pay off your balance and you will pay $5,974.97 in interest. If you increase your payment by just $38 to $150 per month, it will take less than four years to pay off the balance and you will pay $1,508.52 in interest.

If you are only paying the minimum, you are probably paying more in interest each month than you are toward your balance. The only way you can pay off your debt is to pay more than the minimum.

The forum at http://www.Lowcards.com has good tips for getting out of debt and general credit card information.

]]> By: JIm http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/comment-page-1/#comment-83957 JIm Sun, 04 Mar 2007 17:58:56 +0000 http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/#comment-83957 Hi, my name is Jim. Because of the many individuals and couples who are seriously in debt in both the USA and UK, I decided to create a blog dealing with the subject in detail. I congratulate you on your approach and in fact it is similar to my own. However you will find that there is more the individual can do. They may have problems with relationships created by debt. There may be issues of income etc. If you are interested in some alternative ideas, why not link to my blog you will find it at http://eliminatecarddebt.blogspot.com Hi,
my name is Jim. Because of the many individuals and couples who are seriously in debt in both the USA and UK, I decided to create a blog dealing with the subject in detail. I congratulate you on your approach and in fact it is similar to my own. However you will find that there is more the individual can do. They may have problems with relationships created by debt. There may be issues of income etc.

If you are interested in some alternative ideas, why not link to my blog you will find it at http://eliminatecarddebt.blogspot.com

]]> By: Bernard http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/comment-page-1/#comment-80942 Bernard Tue, 27 Feb 2007 01:36:12 +0000 http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/#comment-80942 The crucial point in your case is that you are able to secure 0% interest on your card for several year. Imagine if that is not the case, your debt would have snowballed over the hill! But still a smart way to move the debt over from one 0% interest card to another when it expires on one card. Well done! The crucial point in your case is that you are able to secure 0% interest on your card for several year. Imagine if that is not the case, your debt would have snowballed over the hill!
But still a smart way to move the debt over from one 0% interest card to another when it expires on one card.
Well done!

]]> By: Tim R http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/comment-page-1/#comment-80117 Tim R Sun, 25 Feb 2007 02:43:06 +0000 http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/#comment-80117 make sure you do your homework, before you get or work with credit. make sure you do your homework, before you get or work with credit.

]]> By: Money Articles For The Week Ending February 23, 2007 » Silicon Valley Blog About Money http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/comment-page-1/#comment-79967 Money Articles For The Week Ending February 23, 2007 » Silicon Valley Blog About Money Sat, 24 Feb 2007 15:17:20 +0000 http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/#comment-79967 [...] JLP @ All Financial Matters shares his own personal story with How We Got Out of Credit Card Debt. I never realized that JLP had credit card debt. But his is another success story full of topnotch advice. [...] [...] JLP @ All Financial Matters shares his own personal story with How We Got Out of Credit Card Debt. I never realized that JLP had credit card debt. But his is another success story full of topnotch advice. [...]

]]> By: Jack http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/comment-page-1/#comment-79752 Jack Fri, 23 Feb 2007 20:47:27 +0000 http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/#comment-79752 I am struggling, but am on the right track. I heard Dave Ramsey make the comment that once you are out of debt, you will never want to go back. He said it was like the bumpersticker that says "Nothing tastes as good as it feels to be thin." Thought that was funny. I am struggling, but am on the right track. I heard Dave Ramsey make the comment that once you are out of debt, you will never want to go back. He said it was like the bumpersticker that says “Nothing tastes as good as it feels to be thin.” Thought that was funny.

]]> By: February 23rd Friday Five - Record Retention Day Edition : Generation X Finance http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/comment-page-1/#comment-79664 February 23rd Friday Five - Record Retention Day Edition : Generation X Finance Fri, 23 Feb 2007 15:12:53 +0000 http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/#comment-79664 [...] How We Got Out of Credit Card Debt - JLP shares his personal experience with getting out of debt. There are many different techniques and each work for different individuals. The point is to find a method that works for you and sticking to it. [...] [...] How We Got Out of Credit Card Debt – JLP shares his personal experience with getting out of debt. There are many different techniques and each work for different individuals. The point is to find a method that works for you and sticking to it. [...]

]]> By: Friday Blog Highlight : Blogging Away Debt http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/comment-page-1/#comment-79662 Friday Blog Highlight : Blogging Away Debt Fri, 23 Feb 2007 15:10:22 +0000 http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/#comment-79662 [...] JPL shares How We Got Out of Credit Card Debt. [...] [...] JPL shares How We Got Out of Credit Card Debt. [...]

]]> By: Get Rich Slowly » Getting Out of Debt: Oh What a Relief it Is! http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/comment-page-1/#comment-79630 Get Rich Slowly » Getting Out of Debt: Oh What a Relief it Is! Fri, 23 Feb 2007 13:00:46 +0000 http://allfinancialmatters.com/2007/02/21/how-we-got-out-of-credit-card-debt/#comment-79630 [...] JLP at All Financial Matters recently shared the story of how he got out of credit card debt. It’s not exciting or glamorous, but then paying off debt never is. We paid off our last two credit cards nearly a year ago. It was an amazing feeling to write those two final checks. Our debt came mostly while we were in college. We also stupidly charged up stuff right after college. Most of our debt came from over-indulging. Now our only remaining debt outside of our home is our car and a furniture purchase, and both of those will be paid off in June. [...] [...] JLP at All Financial Matters recently shared the story of how he got out of credit card debt. It’s not exciting or glamorous, but then paying off debt never is. We paid off our last two credit cards nearly a year ago. It was an amazing feeling to write those two final checks. Our debt came mostly while we were in college. We also stupidly charged up stuff right after college. Most of our debt came from over-indulging. Now our only remaining debt outside of our home is our car and a furniture purchase, and both of those will be paid off in June. [...]

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