[cheese]

Hello,

I keep popping in once in awhile, and I know there are some very knowledgable people on here - so I figure I'd give this a shot.

My dad has recently told me he has quite a bit of credit card debt, and is going to be seeking advice from places. He has told me he went to this one place his job recommended where they make all your bills into one 'easy' payment. The problem is, the 1 payment is just about exactly what he pays a month now. He went on how he is going to look online, but I know there are billions of credit scams out there, hes not too familiar with the internet.

He says he is not sure how he got into all this debt on multiple cards over the years, but I know it was to provide for us a good life. But now he is in over his head it seems.

I did a bit of research on credit consolidation forums and found this company: Superior Debt Services Inc - http://wynco.bbb.org/WWWRoot/Report....&firm=46004191
http://www.debtconsolidationcare.com...about7285.html

People over the past years seem to be satisfied with them.

Any advice I can pass on to help? Contact the above company and see what they can offer? Any other tips? I am off to college next year, and would like to help him out the best I can before so.

Thanks

[TechGuy]

It's probably not the quick answer he's looking for, but I highly recommend Dave Ramsey -- he has classes nationwide that teach you how to get out of debt, as well as a few best selling books and a great radio show. I'm a believer and we're on our way to being completely debt free.

www.daveramsey.com

[sweets1981]

I am in the process of reducing debt, including credit cards. This is my plan:

List your individual debts. Target the smallest debt, put all your available free cash on it and kill it ASAP. Pay the minimum on all other debts. Once that is gone the money you no longer have to put that X amount of dollars in it, put that money, plus what you have for debt payments, on the next smallest debt. This snowball effect will be slow to take off but once it does, and if you stick with the plan!, will gradually grow exponentially. The more you pay off, the more you will have to pay off more. Patience is important.

[Farmgirl22]

I'm not really the one to ask about this, as we've a bit of credit card debt right now too...but I really like the site Bankrate, and I'm linking you to a page that talks about different ways to handle debt. I haven't read through it to see if it's got anything pertinent, but check into it.

I hope you and your dad get things worked out soon! Good luck!

[WendyM]

My credit cards are ALWAYS sending me offers to transfer a balance from another card for 0% interest. If he has room on a card, he might want to transfer another card's balance over. It'll mean one fewer monthly payment and the 0% interest can really help. His minimum payment might be the same, but he'll be accruing fewer charges.

[hannab]

Originally Posted by TechGuy

It's probably not the quick answer he's looking for, but I highly recommend Dave Ramsey -- he has classes nationwide that teach you how to get out of debt, as well as a few best selling books and a great radio show. I'm a believer and we're on our way to being completely debt free.

www.daveramsey.com

Good for you Mike

I LOVE DAVE RAMSEY, he has free podcasts that you can download, he has a very positive way about him and he's been through bankruptcy himself. You can get good information from the podcasts alone. He would not recommend debt consolidation - he would push for not charging anything ever again, making a strict budget, cut back on every expense - "Rice and Beans" as he calls it, take on second jobs, sell anything you can - even the kids , Just listen to a few weeks of the podcasts and you'll see what he's about.

I've never had any debt issues, but I enjoy listening to Dave, he just reinforces how I was raised - very conservatively. He also has a very Christian message.

[Wiskycoo]

The hardest part with debt is getting real with yourself. By this I mean, downsizing to live the life you can actually afford versus relying on credit to get you 'buy'. ...and there is no 'quick' way or easy way, because you are taking responsibility for the mess you've put yourself into. The bright side - money is always there to be made no matter how old you are.

The best way is to downsize. In most cases were people find themselves in over their head, it's their house. That's your biggest asset for most people. This is hard bullet to bite for some, but when you have taken on too much debt this is one of the first places to start. If you can sell your house and down size to a smaller house which carries a smaller mortgage, than right away you can have cash you didn't have before to put on your highest interest loan/card. Maybe, if you are lucky, enable you to pay off everything and start a savings. Your house is the only 'quick' way out of debt.

Another, is your savings accounts and anything else like retirement funds. Logically, if you have credit/loan debt then you DON'T have a savings nor should you have a retirement fund. These should be used to pay off your debt FIRST. THEN you can begin to save, again. Other wise you'll just end up with nothing.

The key to paying off credit card debt is to hit your highest interest one first with the maximum amount you can afford. So say the minimum payment is $200 on a $10,000 with the interest rate of 18.5% card and $180 on a similar card were the rate is only 11% and you have budgeted 400 to pay for those cards. You ONLY pay the minimum on the 11%, and you put the entire rest on the 18%. So your paying one card down faster. This logically, instead of it taking the average ten+ years to pay off at the minimum, you can now essentially paid it off in 4.5 years. Then once that card is paid you work with the same amount and pay the other off....don't give yourself a break and say ok I can have 100 of that 400, because you're only giving yourself an excuse to carry the debt longer and in doing so you end up paying more in the long run. ...now considering the average American has more than two credit cards this is only a good solution for younger people.- Like those looking to be debt free before, lets say, 40.

For those with many cards. The ones who are now using one card to pay the other... the bank is your best solution, IMO. The payments do in most aces work out to be similar BUT you have the added benefit of ONE interest rate and usually the banks line of credit are MUCH less than what credit cards offer today. I'm not sure what the US rate is, but the Canadian rate is 6.5% on a line of credit. Unfortunately, if you already 'do' credit cards this can end up being another temptation to waste the money other than to use it on the reason you got it in the first place - for you credit debt. Thats why, I always recommend to persons who have many cards to seek out a credit counselor...as for some people its like breaking a smoking habit.

I've seen many friends fall into the trap of the credit card monster...especially during their college years, because these company's hand them out like candy to people who in most cases have not been taught how to use money wisely. I'm thankful my dad taught me that at a young age so I have never found myself in debt I could not handle... and at 35 I could retire if I felt like it, but I love playing money...its fun when it works for you and you aren't working for it...THAT is the key.

LOL...so ermmm...did I babble? I think I did... yeah...i did. I think its been about three months since I did that at TSG...lol guess I was due.

[trekguy]

Originally Posted by cheese

Hello,

I keep popping in once in awhile, and I know there are some very knowledgable people on here - so I figure I'd give this a shot.

My dad has recently told me he has quite a bit of credit card debt, and is going to be seeking advice from places. He has told me he went to this one place his job recommended where they make all your bills into one 'easy' payment. The problem is, the 1 payment is just about exactly what he pays a month now. He went on how he is going to look online, but I know there are billions of credit scams out there, hes not too familiar with the internet.

He says he is not sure how he got into all this debt on multiple cards over the years, but I know it was to provide for us a good life. But now he is in over his head it seems.

I did a bit of research on credit consolidation forums and found this company: Superior Debt Services Inc - http://wynco.bbb.org/WWWRoot/Report....&firm=46004191
http://www.debtconsolidationcare.com...about7285.html

People over the past years seem to be satisfied with them.

Any advice I can pass on to help? Contact the above company and see what they can offer? Any other tips? I am off to college next year, and would like to help him out the best I can before so.

Thanks

If he wants to stick with the battle with the credit cards... sometimes you can call them directly, and negotiate a lower rate. If there's a LOT of credit card debt, it can be next to impossible to pay them off. You have to make a payment on all of them, and that often times means you can't pay a lot on any one card. Consolidation is probably the way to go. Does he own a home? Does he have any equity built up? A home equity loan is a good way to pay off high-interest debt... it gets the debt in one manageable place, and the interest paid is deductible. Of course, after the consolidation... he needs to get rid of those cards.

[Bush Lady]

he needs to get rid of those cards.

I agree. Get rid of those credit cards. Then you at least can't spend money you don't have.

[Rep]

I only remember paying a monthly interest fee one time. The month after my wife and I were married.

We have used the save for it plan. It has worked out actually very well for us and I would recommend it.

One long term thing everybody can do is to encourage your state lawmakers to reinstate the old 21% interest rate cap on cards. Wisconsin eliminated it in the late 1980's.

I think most businesses can survive earning 21%.

[jonasdatum]

Originally Posted by cheese

Hello,

I keep popping in once in awhile, and I know there are some very knowledgable people on here - so I figure I'd give this a shot.

My dad has recently told me he has quite a bit of credit card debt, and is going to be seeking advice from places. He has told me he went to this one place his job recommended where they make all your bills into one 'easy' payment. The problem is, the 1 payment is just about exactly what he pays a month now. He went on how he is going to look online, but I know there are billions of credit scams out there, hes not too familiar with the internet.

He says he is not sure how he got into all this debt on multiple cards over the years, but I know it was to provide for us a good life. But now he is in over his head it seems.

I did a bit of research on credit consolidation forums and found this company: Superior Debt Services Inc - http://wynco.bbb.org/WWWRoot/Report....&firm=46004191
http://www.debtconsolidationcare.com...about7285.html

People over the past years seem to be satisfied with them.

Any advice I can pass on to help? Contact the above company and see what they can offer? Any other tips? I am off to college next year, and would like to help him out the best I can before so.

Thanks

Hello cheese, I it is unfortunate situation your father is in. I will be responding as I read the thread.

Are any of these cards still active? If the cards were still active I would try to carefully use a cash rebate card with the highest return to help bring down the balance. That is if you don't get charged any further interests?

How was this debt created? Was it for your college education or something way less important like a family vacation? I only ask because you said he wanted to provide you with "... a good life..." Have him sell off all non-vital assets like old clothing, cash, collectables, etc.

If you have to consolidate the debt and pay less in the long run then it is a good idea.

If he can wiggle out of 'any' of his debts without it geminately affecting his credit or affecting it to a minimal concern then do it.

Search my threads related to this issue; I hope they prove useful.

[jonasdatum]

Originally Posted by cheese

Hello,

I keep popping in once in awhile, and I know there are some very knowledgable people on here - so I figure I'd give this a shot.

My dad has recently told me he has quite a bit of credit card debt, and is going to be seeking advice from places. He has told me he went to this one place his job recommended where they make all your bills into one 'easy' payment. The problem is, the 1 payment is just about exactly what he pays a month now. He went on how he is going to look online, but I know there are billions of credit scams out there, hes not too familiar with the internet.

He says he is not sure how he got into all this debt on multiple cards over the years, but I know it was to provide for us a good life. But now he is in over his head it seems.

I did a bit of research on credit consolidation forums and found this company: Superior Debt Services Inc - http://wynco.bbb.org/WWWRoot/Report....&firm=46004191
http://www.debtconsolidationcare.com...about7285.html

People over the past years seem to be satisfied with them.

Any advice I can pass on to help? Contact the above company and see what they can offer? Any other tips? I am off to college next year, and would like to help him out the best I can before so.

Thanks

Transfer the balances to lower rate cards.

[hewee]

See this site here.
http://www.fdrs.org/debt_termination.html

Click the red V arrows to read more on each thing you see there.

[LuckyStrike]

Keeping up can be hard, but catching up is pure murder. That observation is not helpful at this point.

Are there sacrifices and tough choices that can be made to reduce expenses and eliminate some of the debt? Does your dad own any large ticket luxury items that could be sold? Boats, ATV's, motorhomes, camping trailers, unneeded motor vehicles, guns, tractors, horse trailers, surplus acreage, etc.

Are any of his vehicles older vehicles that he might risk scaling back insurance to liability only? Raise the deductible on newer vehicles? Does he have DSL that could be forfeited in favor of dial-up? Premium cable TV channels that could be dropped? Cell phone service that could be scaled back? Club memberships that could be dropped? Magazine or newspaper subscriptions that could be dropped? Contractor services such as lawn service or gardeners that could be dropped? Does he own & keep horses? If so, I'm sure that is a major on-going expense that could be eliminated. Does he have a swimming pool? If so, that is a major on-going expense.

Does your mom work?

[jonasdatum]

Originally Posted by LuckyStrike

Keeping up can be hard, but catching up is pure murder. That observation is not helpful at this point.

Are there sacrifices and tough choices that can be made to reduce expenses and eliminate some of the debt? Does your dad own any large ticket luxury items that could be sold? Boats, ATV's, motorhomes, camping trailers, unneeded motor vehicles, guns, tractors, horse trailers, surplus acreage, etc.

Are any of his vehicles older vehicles that he might risk scaling back insurance to liability only? Raise the deductible on newer vehicles? Does he have DSL that could be forfeited in favor of dial-up? Premium cable TV channels that could be dropped? Cell phone service that could be scaled back? Club memberships that could be dropped? Magazine or newspaper subscriptions that could be dropped? Contractor services such as lawn service or gardeners that could be dropped? Does he own & keep horses? If so, I'm sure that is a major on-going expense that could be eliminated. Does he have a swimming pool? If so, that is a major on-going expense.

Does your mom work?

"I LIKE YOUR THINKING!" Lucky you have to give up stuff you don't need, even if it is only for relax.

DSL: I have the cheapest plan available by my local provider, which cost about $20 a month. Fortunately that is the price for many dialup providers.

Food: What food do you purchase that doesn't contribute to positive health? For example you 'don't' need soda, potato chips, candy, gum, etc. Fast food and buying that morning cup of Joe on your way to work doesn't work either. I am almost certain they still make those coffee tea bag things.

Laundry: Find ways to consolidate time and money. This is an open-ended suggestion.

Selling off stuff you don't need: Old vehicles, horses, livestock, and so on.

Cable: I haven't had cable for about 4 or six years now. I don't miss it much.

Phone Service: It is a matter of convince and functionality. I am myself am in the works to transition to a cell phone. In the end it might save me money. Some people don't need a cell phone. Do you need a cell phone? Do you need a landline?

Energy: Do you use rechargeable batteries or equipment? Are your electronics and devices set to their optimum energy efficiency?

Clutter: Get rid of crap you don't use, selling it for a profit is the best way to go.

Savings: Do you save every dime, penny, nickel, and quarter? I still do. When they fill up you rap them for:

1) Paying off credit cards, bills, etc.
2) Deposit them into savings.
3) Or cash them in at your local supermarket for cash since we know most places hate counting change.

Utilizing Your Talents: Do you have any talents you can exploit for financial gain?

Originally Posted by cheese

Hello,

I keep popping in once in awhile, and I know there are some very knowledgable people on here - so I figure I'd give this a shot.

My dad has recently told me he has quite a bit of credit card debt, and is going to be seeking advice from places. He has told me he went to this one place his job recommended where they make all your bills into one 'easy' payment. The problem is, the 1 payment is just about exactly what he pays a month now. He went on how he is going to look online, but I know there are billions of credit scams out there, hes not too familiar with the internet.

He says he is not sure how he got into all this debt on multiple cards over the years, but I know it was to provide for us a good life. But now he is in over his head it seems.

I did a bit of research on credit consolidation forums and found this company: Superior Debt Services Inc - http://wynco.bbb.org/WWWRoot/Report....&firm=46004191
http://www.debtconsolidationcare.com...about7285.html

People over the past years seem to be satisfied with them.

Any advice I can pass on to help? Contact the above company and see what they can offer? Any other tips? I am off to college next year, and would like to help him out the best I can before so.

Thanks

You said that he went to one of these considated debt payment places. These can often be a scam. If the payments are about the same tha the pays now I wouldn't waste any more time with them. If the agency is suggesting that hey pay for them to help consolidate his debt - it's a trap!

Also find any legal way he can wiggle out of as much of the debt as he can. There is no shame in it. The rich and especially the super rich do it all the time.

So does mom work?

"... the good life..." Buying pleasurable activities he could not afford or was it for your education? Education would be to further your social economic advancement. As a parent that is one of his prime objectives. However if it was for that major game system or some fancy vacation, then that is a mistake on his part. Unless he wanted to wait until death and let his life insurance pays it all off? Perhaps he wanted to die and make it so the bills were never paid?