Home Forums Hunting & Shooting Hunter's Campfire How to pay down credit card debt effectively?

The only reason I want to keep a good credit score is that we will either be building a bigger house/adding on, or will be moving upstate to get a larger house cheaper, so I want to stay in the good graces of the banks.

I tear up all of the "credit card offers" that come my way in the mail.

I can assure you, if you're out of debt and have a good income, you can get all the credit you need, period.

Canceling long-established lines of credit can really screw up your credit score. I'm a Mortgage Broker... I pull and look at credit reports for a living. More than once I've seen someone get the brilliant idea to cancel all their credit cards and the dip their credit took put them out of the range for a conforming loan.

As I said, keep one or two of the longest held cards. Freeze them in a freaking block of ice and put them in the freezer. Cancel the rest if you must, but don't put your credit more in the sheitter than it already may be.

No. 1, DON'T be 30 days late on anything!

But you're obviously an expert...

How to pay down credit card debt effectively?
+++++++++++++++++++++++++++++++++++

Get a card in your ex's name!

Well, there is that too but paybacks can be deadly...

Brad,

if all you use is a credit score to approve or reject a loan app, then you are doing your clients a disservice....

let's say I am a millionare x 2, but I have not borrowed money in the last 10 years, and have no credit cards. What would my credit score look like? probably close to zero. Would you loan me 100k to re-model my kids house? If all you did was base it on my credit score, then I would get no loan. Is this a smart business practice on your end? I'm just saying...

Dave

Dave, my "end" has nothing whatsoever to do with it... it has everything to do with the Lenders Criteria.

We live in a world of credit... wise people use credit, but use it wisely.

I've never claimed to be an expert, but I don't live in a credit world because I don't owe anyone a dime, I don't use credit cards, and I can still get my hand on an awful lot of money if I ever chose to borrow (which I don't).

Credit isn't all about credit cards. Regardless of how a few people feel, some of us may want to buy a bigger house, buy a 2nd home, buy property, etc in the future and a high credit score can make that way easier and cheaper. Not to mention credit score affects things besides borrowing money. When I was shopping for boat insurance last year a LOT of companies took credit score into account. Not sure I understand the logic of that or agree with it but thats the way it is. To say you'll never need credit in your lifetime is pretty naieve IMO.

A lot of places are also starting to check credit scores as a condition of employment, which I think is wrong, but it's a fact.

No, you're not an expert obviously.

You do live in a credit world, you just don't participate. Your ability to access cash to finance anything and everything puts you in a VERY tiny minority of people on the entire planet. Count yourself very fortunate.

You got that right.

About 15 years ago, I when out on a Tuna boat, in my pocket I had an AMEX card, before I left to go fly I paid the bill in full as per tradition when you have an AMEX card, I charged a lunch it was not on the bill when I paid it an I forgot about it. It was 6.75 cents. When I got stuck on Gualalcanal, my card was no good because of the 6.75 outstanding unpaid charge. So much about don leave home with out it, I was able to secure transport another way, and when I go home I canceled the account. I was at the time a card member in good standing for 24 years. They called me once a week for the next six years asking if I would come back. I got rid of all the others as well. If it hurt my credit rating, I would not know I don't borrow nothing, and have not done so since 1998. Yea right now I do have a little cash flow problem,with being out of work, but this is a short term problem. I was dumb enough to use a payday loan once and that was enough. I should be all caught up by Mid Jan if not sooner, once I start getting paid for my services in my new gig. I was sold the bill of goods that you build credit with cards and its a good thing to have, well I learned that the whole thing about Credit Cards is to get you into debt, with a small amount of money and you stay there for 20 or 30 years paying interest. Its a stupid thing to sign on for. About the only thing I would borrow money for is a car, my last car loan was in 1991 and well I am still driving the car, I may just buck up some and buy one out right when this one dies.

"Building Credit" with credit cards is a moot point. There are many ways to build credit, with a credit card waaaay down on the list of ways to build it.

My point is canceling a long-held credit card is an excellent way to harm your credit if you're on the bubble between good/bad credit.

If your credit score is 800 then cancel away... if it's 701 you'd be unwise to cancel cards.

It is going to be tough, but you need to take care of this and get out of debt. Good luck!

4 yrs ago I was in a similar boat, I'd always made decent money, but was widowed and broke from her spending, funeral, etc. When it looked like the present wife and I were going to make a go at it, she was shocked at my bills and the way I had ignored them. She set up a budget and asked "Who owes you money?" Turns out there was a big list, so she got on the phone and started collecting. She also asked what I could sell, so I went to a gun show, sold off a lot of good stuff, started selling vehicles. Astounded me what I could actually raise on short notice. She negotiated with the debtors, and the bills started going away. When I could see what she was accomplishing, it was easier to come up with more money. I started working almost as much in the off hours as the on, but when you have a goal and it is getting closer to reality, you get the burn!

The wife set up a 5-yr plan to be out of debt, at that time we owed on 3 houses. I also took a job with a 40% pay cut. In 3 1/2 yrs we were out of debt. We don't take credit for it, God blessed us, we just took advantage of it.

You can do it, too. The most crucial thing for us is it was a mutual goal. Go after it hard, make extra money any way you can and slam it on the small, high-intrest bills first. Talk with your wife about how it will be to be out of debt, visualise it, write your goals down and post it on the refrigerator.

If we (one awful smart motivated women & a meathead man not afraid to work) can do it why can't you?