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Don't cancel cards, pay off and hold with zero balance---all affects credit rating, canceling actually damages fico score. Then use them once in a while, as long as you pay entire bal at eom.I now only use cards for convenience, never buy anything you dont have the cash on hand to pay off at eom, as others pointed out before. BTW, I used to work in the CC/Mortgage industry for 15+ yrs, know it can be difficult to get out of debt, but have some discipline and you WILL be successful.

Last edited by Joe_Kidd; 10/19/08.
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Originally Posted by Joe_Kidd
Don't cancel cards, pay off and hold with zero balance---all affects credit rating, canceling actually damages fico score. Then use them once in a while, as long as you pay entire bal at eom.I now only use cards for convenience, never buy anything you dont have the cash on hand to pay off at eom, as others pointed out before.


That was what I was told although I've heard conflicting info on that. Some articles say it's better not to have the potential debt vs. your credit, others say it hurts your credit rating to cancel them.

I've even heard that it's better to let them run out due to inactivity than to cancel them...Don't know if that's true or not.

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Having too much debt is worse.


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I went to the bank 15-20 years ago, borrowed enough to pay it off and canceled the account. Got a debit card from the bank so there is no credit to lean on. Surprising how much stuff you don't need if you know you have to pay for it right then. These days I do have a Cabela's card but it only gets used on trips and I've never carried a balance. It gets payed usually before the bill gets here. I've only got $53 built up in credit on the account in the last 3 years, maybe I need to use it more often.

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Yes sir, cash is king. If I can't do it with green, a check or my debit card I don't get it.


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All this crap is the reason why I never spend more on the card than what I can pay off completley at the end of the month.

I have enough problems,last thing I need is debt.

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My wife and I pay all our weekly expenses on one set of cards. We pay it off in full every month so there are no interest charges. We've been doing this for over five years. In that time, we've gotten $1000 in Shell gas cards and three round trip air fares totalling nearly $1500. These cards have payed us! On the other hand, we have the spending discipline to pay them to zero every month!

Having a card that pays is great. Not having the discipline to control spending is bad. Ummmmm I wonder if Congress is listening?

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DO NOT CANCEL the credit cards as it will negatively impact your credit rating. Just don't use them. jorge


A good principle to guide me through life: “This is all I have come to expect, standard lackluster performance. Trust nothing, believe no one and realize it will only get worse…”
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Fortunately I won't fly for vacations.


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Originally Posted by Joe_Kidd
Don't cancel cards, pay off and hold with zero balance---all affects credit rating, canceling actually damages fico score. Then use them once in a while, as long as you pay entire bal at eom.I now only use cards for convenience, never buy anything you dont have the cash on hand to pay off at eom, as others pointed out before. BTW, I used to work in the CC/Mortgage industry for 15+ yrs, know it can be difficult to get out of debt, but have some discipline and you WILL be successful.


If your worried about your credit rating your already in trouble.....get rid of the cards that were part of the problem.

There are 2 schools on paying down credit card debt.

The mathmatical formula calls for paying off the largest debt at the highest rate first.

The other school of thought says to pay off the smallest debt no matter the interest so that when you get it paid off you have a sense of accomplishment that you actually are getting somewhere, instead of paying off the biggest which might take years to pay off and you get discouraged.


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Sell all the crap laying around your garage/house. I paid off my CC with Ebay's help. Examples being selling a $75 piano for $1200, sold some old vacuum tubes for $600. Stuff like that.

One man's trash is another man's treasure.

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Originally Posted by jorgeI
DO NOT CANCEL the credit cards as it will negatively impact your credit rating. Just don't use them. jorge


Nobody will ever turn you down for a purchase because your CASH RATING is too low lol.

I can see a future where your FICA (Credit score) just fades into a memory afte this last debt fiasco we are now working out of.


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Go ahead and keep charging, if it gets too bad someone will bail you out; you can't take it with you....

Seriously, pay off as much as you can afford and whatever you do CHANGE YOUR LIFESTYLE!

I'm glad you are pursuing it with vigor....you are helping yourself and your neighbor. Good luck!

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I have been looking a credit reports for almost 15 years now, do not ever cancel an account.

Almost 30 to 40 % of your credit score is the amount of credit available vs. credit used. I have seen certain people's credit swing by 30 to 40 points based on what part of the month you looked at their credit.

If you close the account it looks like you have less available credit.

That is why your credit score is always lower the first couple of months after you make a big ticket purchase (House, Car, Boat, etc.)

Last edited by FL_HUNTER; 10/19/08.
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Originally Posted by Derek
I only go to the Classifieds here to sell, LOL. Which then I send the money to the credit cards.

I have six credit cards, of which three are paid off, and unused. Two have balances but are not in my wallet. One I use and pay off each month.

I always pay more than the minimum...The problem becomes that on the income I have, things like gas, etc., being more expensive, really impact me.

I drive a car that gets 30mpg average, however, I still have to fill up regularly.

I had a job teaching that paid $40k per year, but after you took out all the state-mandated retirement funding, I brought home no more in net pay than I do selling furnaces now. I quit that job because it wasn't worth the hassle.

I've been spending more than normal this year as I've gotten back into guns and hunting after a few years off doing other stuff.

Pay the bare minimum on all but the highest interest card, which you should pay as much each month on as you possibly can. When that's paid off, do the same for the next highest interest rate card, and keep paying the minimum of the others. Follow that pattern. It's mathematically the most efficient way to pay them down. Good luck.

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First study the card applications that come to your house. Grab one that has 0% interest, and NO TRANSFER FEES! Then transfer all your debt to this one card and close out any others.

When the bill comes look at the min payment, and then add at least $100 to it.

At about ten months start looking for another deal. I had to do it a few times when times were tough, but the key is finding the 5% that don't charge you the transfer fee.

Also never be late with a payment, this nullifies the 0% in addition to a hefty late fee.


If you stay diligent with it you can pay nothing but principle, the card companies are banking that you won't be. Good luck with it.







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If you will get dead serious about working your ass off and selling everything you can along with an extra j-o-b or two, then pay 'em off smallest to largest reguardless of interest rate. Don't worry about surfing them to a lower or no interest offer in the mail. If you get serious about this you will be amazed at how fast you can kill 'em off, and the interest rate will not matter!! Pay cash for everything from here on out-don't play with a credit card to get airplane miles or a new toaster...you will find yourself justifying a purchase that you are on the fence about to get your "bonus". Studies show you spend MORE when you use credit...read on where at McDonalds if you pay cahs the avg is around $4, but CC users spent closer to $7...why do you think they all are making it easier to "swip the card in the drive through".

Cancel all your CC's after you pay them off-if you pay cash for everything you won't need a credit score...


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Originally Posted by FL_HUNTER
I have been looking a credit reports for almost 15 years now, do not ever cancel an account.

Almost 30 to 40 % of your credit score is the amount of credit available vs. credit used. I have seen certain people's credit swing by 30 to 40 points based on what part of the month you looked at their credit.

If you close the account it looks like you have less available credit.

That is why your credit score is always lower the first couple of months after you make a big ticket purchase (House, Car, Boat, etc.)


And people are shocked when our world economy is crumbling now because we based it on selling stuff to people who couldn't afford it. Couldn't last forever. People are in love with their credit score all the way to bankrupcy.

Forget about your credit score. Get rid of your cards. Change your lifestyle.


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We have never carried more than a gold card from the bank for emergencies, car rentals on occasion, internet purchases, and overdrafts (Thank You, debit card! (wife) - I hate the damned thing!!!!) ), and my wife has an airlines card which we use for air travel and large purchases which builds milage, which balance we try to keep low as it has a higher interest rate than the bank card. The "free" milage is great however!

Both currently have zero balances, thanks to recent Alaska Permanent Fund dividends. It pretty much took both of them.... all $6,000 or so.
Now then, about my garage construction....

Nothing wrong with credit cards, just keep them few, and use discipline on both ends of that smokin' plastic. Paid off at the end of every month is best, tho we don't often get there, quite.... We always pay more than minimums.

When the balance gets too big, it takes pain to make it go away- second jobs, no latte's, pizza, Blockbuster, simple, cheap home meals, combine trips to town, cheap wine, etc. Every little bit helps.

If you are semi-underwater, it makes sense to me to pick off the little debts first, paying only mins on the larger ones, regardless of interest rates. This frees up capital so you CAN effectively attack the larger ones over and above the mins. Plus of course the encouragement factor.

If you have any kind of credit history at all beyond credit cards, cut up the ones you have paid off ( you need not cancel them- just get rid of the temptation!), unless their convenience value exceeds the risk- but don't use them again until other debts are under control. Personally I don't see the value in securing credit ratings by having a dozen cards paying mins, over two paid off ones, and an up to date house mortgage/ rental agreement and car payments. (Ours are all paid off, except for the 2003 Dodge Ram 3500 with camper- but the rental apartment is handling that...) A couple good ahead-of-the curve references would seem to me to be as, or more, valuable than half a dozen liabilities that you are only paying minimums on on your credit rating.

Credit unions are often a better way to go than banks....

When we bought our house in '88, it was during a local recession- and we figured we could marginally handle it. We were counting on a 90 day closure because of our schedules- two weeks later the Credit Union told us- "go move in" - apparently our credit rating was PDG! It was a bitch! smile

We took it on a 30 year mortgage, paid down a bunch of % points (11 to 8, as I recall) with about $10,000 cash, over and above the minimum cash down price, set up a payment schedule of about $200 a month more, and paid it off in 15 years. Well, not quite, as we refinanced some years later at 6.5 %, and took 30,000 equity out to take care of some things, which still only extended our buy out time by 2 or 3 years, at the same payment rate. And we saved about $100,000 in interest (on a $105,000 home) payments over the 30 year mortgage plan.

The point is, don't over-extend yourself, and if you do, bite the bullet until it's under control.

A 30 year mortgage will cost you 3X the purchase price- by adding a few hundred a month, which goes directly to the principal - you can save a third, and be mortgage free in 15- but you still have the option of not paying that little bit extra should chit hit the fan and you need it.

Credit cards should be considered "4-wheel drive". Don't use it to get into trouble- use it to get out of trouble. Or, carefully, for convenience, assuming you can handle it.


Last edited by las; 10/19/08.

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1. stop using the card - cut it up or put it away for use only in emergencies [as in plane tickets to attend a funeral]
2. decide on an amount you can pay EVERY month on the balance.
3. make monthly payments.

you can undoubtedly do this, you just need to decide to do it.
good luck........


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