It is very difficult to start with so many cards falling due and have little cash which could not even pay for my family’s basic needs. this is my first month that i will not be able to pay the minimum amount due of my cards , i am waiting for a miracle from heaven, i will not borrow from another card to pay another card. I will be expecting calls from them. So i commit everything to the LORD.
I started my own payment plan when I was in debt and the best part of that was I felt like I was totally in control of it- not someone else. I closed all my accounts except one – I don’t know what that did to my credit score… but at that time I really didn’t car becasue I made a commitment to STOP using credit cards altogether and start living a cash based lifestyle. If I didn’t have extra cash for something -it was not going to be bought until I did. It taught me a lot about actually saving money for something.
I paid off my small balances first as fast as I could while only paying minimums on the larger balances. This gave me a sense of accomplishment within the first 6-8 months or so. I had eight different accounts. I kept one open account – and it wasn’t the one with the lowest interest rate, it was one with the most available credit left on it – and I locked it away with the magnetic strip cut through, so the only way to access using the number was in a life or death emergency. I never had that dire of an emergency. I also wanted to keep one open account on my credit history. Today I have two open credit lines in my name – and I’ve only used them a couple times.
I’ve learned the value of major discipline of not giving into my whims of spending and only using a credit line if I have the cash to cover paying it off right away. When I had my debt paid off about at the halfway point, I then started researching lower interest accounts to transfer to or looking at new offers I was getting in the mail. That was about two-three years later. I’ve been totally credit debt free for about 6 years now. It’s a happier, free-er way to live.
I wish you well – get support when you need it and realize – you really don’t need to use credit cards to live, survive or have fun.
I agree. It may not be the smartest (i.e. paying the smallest debt first vs. high interest debt first) but it sure does give that boost of pride, self-confidence and that you are taking control of your debt. For me, it’s much more fun paying them off then it was going shopping with them. LOL! 🙂
I am in the same boat. I’ve never been late with a cc payment and this is first month cannot pay a thing. I’ll keep you in my prayers. I went through a credit counselor for about a year at 600.00 a mo and balance came down about 20.00 per month towards end. Does anyone recomment a debt settlement company? Has anyone heard of consumer recovery network?