Credit card debt

[giant rock]

So I had a look at our credit card and we have a debt of $19,000 with only a couple of hundred left to use. I am sure that the bank will get that with their interest rates. Yes I am stressed out knowing that my husband ( who is an interstate truck driver) is going to stress even more than me and I am already nervous about that a little afraid also. think that I may need to get a casual job to pay this debt of and have my wages go straight of the credit card so realistically I will be slaving away to pay of a credit card that not only I have used but the one that hubby uses for things like Beer which I hate as it is not a need and other little things. I have been using the credit card for bike parts etc and pay the amount of the following week as I do Avon and it brings in around $500 every 3 weeks. Out of that money I am also paying other bills.. I am So STRESSED HELP ME

 

[DeBloot]

Are you serious?
$190 000 in credit card debt
And you're asking Farkiners for advice
Get on the phone to a (free) government department that can advise what to do or at least where to get proper advice. Go see a professional.
The exhorbitant credit card interest (even now with historically low interest rates) on that amount will see that you never even get to paying off the principal
You really need to take action now to get that debt somewhere more affordable and take steps to reduce it over time

 

[giant rock]

Sorry the amount was 19,000 not 190,000. I would definately not want to be alive having that amount of debt

 

[Christo]

Hey Giant Rock,

It's tough, and that's a large debt. The best thing to do is talk to your bank.

They don't want you to default but on the other hand, they do want you to stay maxxed out & keep paying high interest.

With most banks though, you will be able to negotiate a lower interest rate temporarily while you chip away at it.

In all honesty, it's probably worth the short term pain for long term gain of getting some extra income.

Also, look at budget strategies.

My wife & I are a single income family, with a mortgage. I've started homebrewing (I drink lots of beer) and I would buy a couple of slabs a month, now 2 slabs costs about $18.

I don't know you're shopping or eating habits but you can really impact your budget by being a careful shopper.

Also, there are lots of free financial planning services out there - you're not alone in this situation and people out there have been there and DO want to help you.

A quick google will help.

Good luck!

 

[Grip]

I really should do you a favour and lock this thread NOW. If you're just having an "I'm so stressed" whinge then that's fine, but I can't believe you're asking for financial advice on an internet forum... especially THIS internet forum! (Although this might go part way to explaining why you're now finding yourself waist deep in shit!)

Make way! I can hear the hordes of 12 year olds rushing to your aid just chock full of helpful advice!

Sorry you've found yourself in this situation, but seriously.... what "help" do you expect from Farkin members? Do yourself a favour and take the advice of DeBloot given above and get some appropriate advice from an appropriate source. You may find some of the more mature and financially savvy members will jump on here and offer some VERY general advice, but no one with an ounce of brain matter will try and really help without knowing EVERY single aspect of your financial life and spending time working out a personally designed "help package/plan" for you. And you shouldn't really listen to anything but the most general of advice from anyone who isn't qualified and who doesn't have all your financial information in front of them.

 

[giant rock]

Grip,
Sometimes it is nice to chat with others and see what they are thinking of the situation, there maybe someone out their with good advice to give that I may not know of as I have not been in this situation before and I am really stressed, panicking and shitting myself to be exact. No we do not have people knocking on our doors asking for money I just want to get control of this debt now which should have been done ages ago. So I hope that you now understand where I am coming from......

 

[Grip]

Grip,
Sometimes it is nice to chat with others and see what they are thinking of the situation, there maybe someone out their with good advice to give that I may not know of as I have not been in this situation before and I am really stressed, panicking and shitting myself to be exact. No we do not have people knocking on our doors asking for money I just want to get control of this debt now which should have been done ages ago. So I hope that you now understand where I am coming from......

I sort of figured that... which is why I edited my post above. Have another read of it. The ONLY advice you should listed to here is "get appropriate advice from an appropriate source".

I googled "financial advice" and got heaps of leads. Maybe try this one http://www.wesleymission.org.au/centres/creditline/Services/Financial_Tips.asp

 

[Misplaced]

1. find out your exact % rate on the card.

2. shop around and apply for a balance transfer for a lower rate card (there are still some around at 6%intro and 10% ongoing) try ANZ and bankwest

3. move the debt

4.pay as much as you can religiously every month.

5. keep a spreadsheet tracking weekly your spend, outstanding debt and goal of outstanding debt at end of month

6. repeat steps 4&5

 

[scblack]

I really should do you a favour and lock this thread NOW. If you're just having an "I'm so stressed" whinge then that's fine, but I can't believe you're asking for financial advice on an internet forum... especially THIS internet forum! (Although this might go part way to explaining why you're now finding yourself waist deep in shit!)

Make way! I can hear the hordes of 12 year olds rushing to your aid just chock full of helpful advice!

Sorry you've found yourself in this situation, but seriously.... what "help" do you expect from Farkin members? Do yourself a favour and take the advice of DeBloot given above and get some appropriate advice from an appropriate source. You may find some of the more mature and financially savvy members will jump on here and offer some VERY general advice, but no one with an ounce of brain matter will try and really help without knowing EVERY single aspect of your financial life and spending time working out a personally designed "help package/plan" for you. And you shouldn't really listen to anything but the most general of advice from anyone who isn't qualified and who doesn't have all your financial information in front of them.

I have to agree here. Probably your best bet is a personal loan for $20k, pay off the credit card, and then CANCEL the credit card.

Clearly the two of you cannot manage a credit card. Get rid of it.

 

[fnlow]

Cut that card in half. Go seek professional advice immediately. Good luck.

 

[Misplaced]

Personal loans work too, but if you need a CC to manage cashflow, it'll end up being '1 step back' everytime

 

[Pete J]

Me too, albeit not quite 19000 smackers but still several thousands of dollars anyway.
Get a personal loan, pay off the first debt immediately, cancel the card and then don't get another credit card for a long time.
You have to learn that banks want to keep you in debt and will keep offering increased limits. That is NOT free money, it is just extra rope for you to tie around your neck.
Good luck to the both of you, i hope it all goes well.

 

[Tazed]

How else did you run up that debt? Business use too? (my neighbour is a truckie, so I'm at least a little aware of the massive expenses of running a rig)
Me? Consolidate: I'd get a personal loan, and destroy the card. The interest rate is criminal on most CCs.
Get a debit Mastercard/Visa if you need the service.
If you must keep the card for any reason, get its credit limit reduced to the minimum ($1000 or so).
You've got to dig yourself out of the whole, and one way or another.
It's just going to take time and self control to do this.
Don't get depressed, just take control and get on with it.

 

[frostbite]

Do you work (doesnt sound like it, apart from Avon)? Do you have kids?

If no and no, then go out and get a job. Doesnt matter what it is, even if you're doing 20 hours a week at $15 an hour, thats still $300 (before tax) a week (probably what, 1k a month after tax?) that can go to your debt.

Within a year you'll have paid it down around half way and you'll be paying less interest, it'll be more manageable and within 2 years you could be debt free.

I know that sounds bad, but 19000 is a big hole, you need to start digging your way out now.

It doesnt sound like your husband knows. You should definitely tell him too.

Obviously if you get a stimulus payment (both you and your husband) both of you need to be putting it into paying that debt.

 

[RCOH]

A few years ago (almost 4 years ago) I was in a similar situation - I had approx $13k debt (credit card & personal loan) and my partner over $5k on her credit card. When we found out we were going to have kids I got a personal loan that covered both expenses (approx $19k) and cut up my credit card and reduced the limit on my partners card to $500. The interst rate on the loan was significantly lower than my credit card and I always paid a bit over the minimum monthly repayment (approx $250 per fortnight).

As it stands, I am now out of debt (as of about 3 weeks ago ) and can live without a credit card (and am even saving a bit of money!).

It does suck paying off all that money but having debt sucks even more. It will take a few years but you will be much better off in the long run.

 

[slip]

Balance Transfers are often excellent interest rates for 6-12months, some indefinitely (for the transferred amount) and could be your best bet. Generally better rate than a personal loan.

This will be a good option if you can resist blowing a whole lot of money you don't have with the new card.

Transfer balance.
Cut up new card.
Get to work.

 

[giant rock]

Yes we have one child and I would like to work say a 10-2 job but where are they. I have been searching and have found absolutley nothing. Reason for a 10-2 job is that my little one is in pre school and when he does start school then I know that I can be their for when he goes and when he comes home. That is until he is at an age where he can be left on his own say around the age of 16yrs which is along way of. But I am trying to think logic here. This is really the only alternative that I can think of to get out of debt. Get a 10-2 job have the wage paid straight into the credit card not into our savings account. Still do my avon on top of all that to bring in that extra $500 every 3 weeks and live life alot more comfortable. That would be a dream come true and I can still jump on the bike and go for a ride. Either early morning or late evening or even ride to work if it is close by...

 

[emcgough]

Yes we have one child and I would like to work say a 10-2 job but where are they.

Waitress, barperson or kitchenhand for a hotel during lunch shift sounds about right? I'm sure you could find a place that would be willing to give you those set hours - ie: you finish at 2 on the dot, you don't have to wait for lunch to finish up, which is ever changing. I've worked at places where co-workers have done exactly this, because of the same reason. Many employers are compassionate when it comes to working around the care of a child (of course many aren't, too).

 

[jaseh]

We were in a similar situation not so long ago, not as much debt though. We have done a balance transfer onto a bankwest lite CC, 0% interest on the transfer for 8 months 10% after that. Much better than the 19% we were paying. We have cut up and cancelled the other cards now and will be cutting up the bankwest one as soon as it arrives. What you will be able to transfer will depend on your income and expenses though. I have also started to do overtime to try to knock the debt off before the 10% kicks in.
We looked at a personal loan bu the interest rates were normally around 13-14% .


http://www.bankwest.com.au/Personal/Credit_Cards/BankWest_Lite_MasterCard/index.aspx

 

[TheBofh]

If you are in a position to refinance a mortgage it may be a better option than a personal loan. We refinanced a few years ago & put in a pool & paid out a car loan totally about $45k and only added about $50 a month to what we had been paying for the car & mortgage payments.