HELP! I'm struggling to keep up with my credit card payments

[nickreese90]

@CatStevens that is a really good and fast way to pay stuff off. I’ve been using it and paid off two cards so far, now I’m paying $200/month on one card, once it’s paid off, then $250/month on the other card. It sounds impossible to do, to pay $200/month on a $650/biweekly income, but it’s possible when it starts to snowball up. 

[BORI69]

That is the worst advice you can give someone. 1st of all you are never going to build credit history if you close your accounts. Your credit score weighs heavily on credit history so In that case do whatever you need to help you pay it off w/o using it again; psa: cut it up.

[BORI69]

Another atrocious advice. Bankrupcy? There goes this person's chances to borrow a penny in like 15 yrs. 

Calling your credit card companies is the correct thing to do but here in the US as long as you make a promise to make a monthly payment (even if its a dollar a month), credit companies cannot damage your credit. My advice is to make a monthly budget and divide that amount amongst all of your cards. 

[rodkcam]

Your suggestion to others regarding paying down debt is commendable.  However, the term you used is not making sense.  Why should a debtor focus on INTEREST when the most important factor here is the BALANCE.  People aren't focusing on interest when it's the balance that is more important.  The credit card out of many that has the lowest interest should be targeted and paid down as quickly as possible.  Once that's done, the next credit card with the lowest balance should be targeted to pay down quickly.  As for the other high balance credit cards, they must be paid too in a timely fashion but only have a little more than the minimum payment submitted (e.g. $20 to $30 more if possible).  Remember, once a payment is received for the month, a portion of that payment goes to the interest once the credit card statement is generated for the month.  

[rodkcam]

Your suggestion to others regarding paying down debt is commendable.  However, the term you used is not making sense.  Why should a debtor focus on INTEREST when the most important factor here is the BALANCE.  People aren't focusing on interest when it's the balance that is more important.  The credit card out of many that has the lowest interest should be targeted and paid down as quickly as possible.  Once that's done, the next credit card with the lowest balance should be targeted to pay down quickly.  As for the other high balance credit cards, they must be paid too in a timely fashion but only have a little more than the minimum payment submitted (e.g. $20 to $30 more if possible).  Remember, once a payment is received for the month, a portion of that payment goes to the interest once the credit card statement is generated for the month.  

[Sarahkgo]

The interest is how credit card companies and student loans(and personal loans) generate revenue for the credit lender. The higher the interest, the less the money goes towards the principle of the loan or the balance of the credit card. Paying towards ALL loans, while divvying up the payment amounts by interest, saves money over the long term. It shouldn’t be a single-minded focus on balance if you end up paying 10-15 percent more on the loan/balance than you would if you structure your debt repayment.

Understand how interest is calculated on your balance/loans is critical, as there are varying types of interest on loans. When I responded to the student loan question, I should have added this article from NerdWallet for reference:

https://www.nerdwallet.com/article/loans/student-loans/student-loan-interest-capitalization

Arithmetic and Finance are not synonymous; it’s more complex than simply “pay down the biggest number”.  

[AaronAndrew]

I definitely feel your pain. As others have recommended I would first cut up those credit cards and lock those accounts. If you’re really drowning in debt I would NOT recommend that you file for bankruptcy. That will completely trash your credit and it will be hard to recover from it. What I do recommend is trying to make some extra money to be able to make those payments or even if you’re living above your needs to actually sell some things (Including your house). Buy a smaller house, start buying cheaper groceries, and even sell your car for a cheaper one if the payments are affecting your able to make payments. Lastly, I would recommend that you listen to or read the book The Total Money Makeover by David Ramsey. It will definitely help you improve your life with debt.

[Grizzyboy]

Idk let me know if you figure it out. Better yet how does one get money back from people that have borrowed it and won’t pay it back.  These companies need to stop behaving like organized crime. It’s sick

[Chesterburlz]

A better job. Or another job 

[KLazo75]

Closing credit cards is detrimental to your credit score.  

[Foley]

To the other guy who replied to you; NEVER close a paid off credit card! That is the absolute worst advice you could give to somebody! First, stop using the card, next, like the other respondent said pay it off but next DO NOT close the account! You want to have as much available credit as you can! Even if you don’t use it much or ever! That is credit score building 101! Everybody knows that!

[Busybaker1119]

<removed> is awesome with paying down debt.

[Gosendr]

I had this problem yrs ago. I went to my Credit Union and got a loan to pay off my credit cards. Interest rates were so much lower @ 6.9%.  It was a 3 yr loan and would be paid off and the payment was lower than my credit payments were. Also don’t cancel your credit cards, it will hurt your credit score especially if you’ve had them for awhile. Just pack them away. You can also put a freeze on them, until you really need to use them. After getting everything paid off, just use for emergencies and try and pay them off right away. Good Luck. 

[Gosendr]

If you don’t have a Credit Union, you need to open one. I got a loan thru the Credit Union to pay off all my credit cards. Interest was only 6.9% for a 3 yr loan. My payments were a lot lower than my credit card payments together. After that was paid off I got a credit card thru them at 9.9%. I only use that for emergencies. I ask myself do I really it before I buy it now. Don’t cancel your old cards cause it will hurt your credit scores. I did cancel one because of the yearly charge. It was my oldest card and dropped my scores. Make sure not to run them up again once paid off. You can put a freeze on them until a later date when you might need to use one. I keep mine in a safe only for real emergencies. With the interest rates being so much lower at the Credit Union it makes you feel good watching your debt get paid down quicker and you could still send a bigger payment when possible and get it paid off even quicker. Good luck

[Amanda1986]

I have come across a very interesting quote that has helped me make every purchase after learning it. It is "if you notice you're in a hole, stop digging." Don't use your credit cards any further until you've paid off your credit cards. If you don't have the actual cash to buy what you are purchasing, don't buy it. Wait until you have the cash. Use lay-a-way options in stores. Eat at home. Keep a budget. Keep your receipts. Download the apps "Fetch" and "Ibotta". Record every receipt within both of those apps. You'll get points that eventually add up to gift cards to the stores you shop at the most.

Good luck! I was in 9,000 credit card debt last year. Now I'm able to pay my balance off each month.