Get new credit to pay off old? Need advice...

[JenMTA]

I have about 20K at 19.9 APR on an 8-yr-old credit card, and I can no longer afford the minimum payments, which are about $550.00 a month right now. I have not yet been late on a payment, but it's only a matter of a month or two. I have a really good credit score and I've been getting those 0% soft offers in the mail again, should I try one of them? It's Citibank that sends them, mostly. I really want to pay this debt down, and I'm scared of debt consolidation companies, don't even want to go there. My other option I guess is calling my cc company (Chase) and asking for a lower interest rate, or getting on their hardship program. The problem with hardship, although Chase is really nice about it, is that they make you close the account, and I know that's a hit on my credit. Then again, so is applying for new credit. The credit union I bank with gives personal loans at 10.75% right now, better than 19.9, but if I could do 0% for 14 months or so, that might be even better. It would probably go up to 14.4 at the end of the 14 or 18 months, according to the Citibank offer, but I'd have 3 or 4K less in debt and therefore the minimum payments would still be within range of what I can pay, and hopefully by then we'll be making a bit more money.

 

I don't know. Any advice?? Thanks in advance!!

[JenMTA]

Anyone? Bueller?

[Steveo1]

If you don't have too many inquires and you have good credit I would go with the 0% for 14 months. That would be a lot better than having the account closed since it will help your utilization instead of having your account closed and your utilization going to 100%.

[JenMTA]

Thanks, Steveo. I should have added, though, that my husband makes the vast majority of the income in our house. I only bring in $500 - 1K a month. I don't think there's any way they're going to let me transfer 20k with that kind of income.

[dabrian]

If you can find a way to transfer over the entire balance then I would snap do it. Also if at all possible find some extra income to get it paid off quicker before the interest kicks back in.

GL

[jcraig]

I have about 20K at 19.9 APR on an 8-yr-old credit card, and I can no longer afford the minimum payments, which are about $550.00 a month right now. I have not yet been late on a payment, but it's only a matter of a month or two. I have a really good credit score and I've been getting those 0% soft offers in the mail again, should I try one of them? It's Citibank that sends them, mostly. I really want to pay this debt down, and I'm scared of debt consolidation companies, don't even want to go there. My other option I guess is calling my cc company (Chase) and asking for a lower interest rate, or getting on their hardship program. The problem with hardship, although Chase is really nice about it, is that they make you close the account, and I know that's a hit on my credit. Then again, so is applying for new credit. The credit union I bank with gives personal loans at 10.75% right now, better than 19.9, but if I could do 0% for 14 months or so, that might be even better. It would probably go up to 14.4 at the end of the 14 or 18 months, according to the Citibank offer, but I'd have 3 or 4K less in debt and therefore the minimum payments would still be within range of what I can pay, and hopefully by then we'll be making a bit more money.

 

I don't know. Any advice?? Thanks in advance!!

 

Do not do this as it will lower your credit score.

It's better to borrow from friends in order to pay off the balance.

[Cactus Flower]

 

 

Do not do this as it will lower your credit score.

It's better to borrow from friends in order to pay off the balance.

 

There is nothing worse than borrowing from family or friends! Besides that, what makes you think that she has friends willing to lend her $20,000 (I wouldn't!)

Transfer the balance to the card for the 14 months.. and just focus on paying it off.

after 14 mos, you may be able to transfer whatever is left, somewhere else.