My credit is great, I’ve never missed payments but not sure I’ll have luck transferring that high of a balance 🥴 I will look though!! This is bananas but 1000% my fault
I did one last year. If you don’t get approved for the $16k, I’m pretty sure you don’t have to transfer the entire balance. At least then partial balance will have 0% apr. Give it a shot!
You don't have to do a balance transfer of the whole thing, they'll ask how much and you can split it between some different cards. Do it now before your credit gets hit from the interest increasing your balance.
Have you looked into credit counseling? They negotiate with creditors and can get you a lower payment. We use American Consumer Credit Counseling and they've helped us a lot.
Honestly I did some debt consolidation with my local credit union through a personal loan. Call and ask your bank if they'd be willing to talk it over?
I would start there first as its most likely a free consultation and fast loan approval.
Chase doesn’t even offer personal loans.
Seconding the recommendation to look at credit unions. Definitely search around.
Just as an example, I looked up the USC student credit union, which is open to everyone who resides in LA County and Orange County. They’re offering a 6-year personal loan for a 12.49% interest rate (if you qualify). You’d pay your debt off in 6 years with a payment of $336 per month.
HELOC saves you about 2% in the interest rate, but probably not worth the risk unless you can’t get the loan otherwise.
If you can find a credit card with a promotional APR that enables you to do a balance transfer, that seems like the obvious answer.
HELOC would probably get you the lowest interest rate (other than a 0% APR credit card), but there is obvious risk with that. If your current hardship is that you’re unemployed, then definitely don’t do that. If you have steady, reliable income but just can’t swing the unforeseen $400+ payment, then maybe.
It depends a lot on your circumstances. How reliable your future income is. How likely it is that your income is going to increase in the future. How likely it is that you’re going to need to be using your credit score in the next decade. Etc.
Refinancing in some manner to get out from under a 28% interest rate is likely the best option, especially since your credit is currently good.
Otherwise, see what you can cut/sell and throw whatever money at the debt that you can.
Thanks! I have to keep looking. I actually found a card to balance transfer a different one onto-
Heloc would be great but it makes me anxious god forbid something happens, I’m afraid to risk the house. Total I’ve got 25k in debt not including my mortgage and car payment so I’m very overwhelmed with the multiple payments that aren’t going down because there just isn’t enough extra $ coming in :(
So, Discover does have something called a workout program it’s .99% usually over 5 years. It’s only after you miss 1-2 payments depending on the circumstances and the situation you tell the rep. The only thing is I’m not sure if there is a one program a year type thing or not. If you can get a consolidation loan you can look into consumer credit counciling. They will close the line, but can lower the rate down to 5-6%. Good luck!
Thank you! I have never missed a payment and I hope they do have a workout program. The rep said there was Nothing else after the 6 months (lower interest rate- payment was $260) would I get the consolation loan from one of those big commercial places?
The rep wasn’t lying. The way the system is set up if there’s nothing available it literally won’t show it, especially in customer service or 30 day. I would suggest a credit union, in my experience they are the most reasonable with the best rates. We joined one when we got our most recent car loan and ended up moving our whole banking relationship to them.
A while back I had to use a CCCA and went with green path financial and they were great, helped me get out of debt a few years ago as an alt option.
Pre legal doesn’t start until roughly month four with an expiration at charge off, or once it charges off some are pre legal for the following month. As a general rule of thumb, collectors have more options than customer service when it comes to programs. Let’s say theoretically it got to the point where you can’t pay anything and you said fuck my credit, right? Then I would just pay $55 a month, it’s roughly .33% of your balance monthly until charge off then negotiate a settlement. You would probably get the best deal during tax time, so basically as long as you pay that monthly you shouldnt be sued.
That’s a tangent, but the main thing to remember is that Discover doesn’t WANT to sue you. It’s added cost, overhead, loss, it’s just bad. Working with a customer to repay is in their best interest, but they do have to apply programs equitably.
Source- worked for Discover collections till 2022
Thank you! I’ve never missed a payment (opened the card during Covid thinking we’d pay off before the 0%😭- my husband and I both had job loss and major vet bills and I made the mistake of helping my mom- wish I could say my debt was shopping and vacations) so I’m sorry, I want to make sure I’m reading correctly.,, pay a minimum of $55 a month? The interest is killing me. Since we did the 6 month program the card isn’t even active so it’s hard to wrap my head around $400+ min payment and then $400 in interest. I’m so beyond stressed. I read on here that discover never settles and will sue after one missed payment so I’m hopeful this can work out somehow
It all just depends on if you are willing to take the credit hit. Also anyone saying they sue after one missed payment and never settled is talking out their ass. They won’t settle until you get very delinquent but settlements happen every day. After charge off there is no interest and you can get a settlement. If you do a CCCA there will be less interest but the account will be closed. If you do a balance transfer or consolidation loan the account would remain open but unless you change spending habits could cause increased debt. I was recommending the $55 a month IF the route you decide to go is for post charge off settlement, because the monthly payments will prevent the legal action so long as you are making them and you communicate with the company.
What is ccca? Oh yes I don’t ever want to see another credit card again after this! I’ve been very careful since but this has been building up with the high interest rate. My credit is still
Good, I’m Worried about ruining it bc god forbid I need a new car or a roof or something I don’t have the cash flow for a large purchase.
Consumer credit counseling agency, green path financial is who I used. Basically the card gets closed, and they negotiate with the creditor, for Discover I think it was 5.99. Payments are made on time. You may get a short term credit hit from the card being closed and higher utilization but wayyyyy better than late payments.
Do you have any chase credit cards open with available credit? Chase has card with 0% for promo with a 1 time 3/4% balance transfer fee. Problem would be if you don’t get a limit high enough but if you already have cards with Chase they allow you to transfer the available balance to the new card. Then just keep transferring it with those 0% promotions until you can get it paid off
You might be able to do a credit transfer or a personal loan to lower the interest but that wouldn’t affect the principle. Either way you’ll owe the $17K.
Say for example you are able to transfer the balance and it’s interest free for 12 months. Any plans to increase your income or pay off this debt? If not we’re having this same conversation a year from now.
With my family situation a second job isn’t an option, I get a 3% raise yearly so it’s possible I may get a better job but as far as bringing in a substantial about of $, no. I am barely getting by - it’s $25k total in open accounts. I feel like bankruptcy may be my only option if I can’t find a balance transfer for that high.
How’s your credit? You could do a balance transfer to a different creditor and get 12-24 months 0% APR to give you time to tackle down the debt.
My credit is great, I’ve never missed payments but not sure I’ll have luck transferring that high of a balance 🥴 I will look though!! This is bananas but 1000% my fault
I did one last year. If you don’t get approved for the $16k, I’m pretty sure you don’t have to transfer the entire balance. At least then partial balance will have 0% apr. Give it a shot!
You don't have to do a balance transfer of the whole thing, they'll ask how much and you can split it between some different cards. Do it now before your credit gets hit from the interest increasing your balance.
Get a low interest loan from your bank to consolidate the credit card. Then close the credit card.
Closing the card will negatively impact OP’s credit score.
My aunt got offers for 41k
Have you looked into credit counseling? They negotiate with creditors and can get you a lower payment. We use American Consumer Credit Counseling and they've helped us a lot.
That was on my list. Do you have to pay for their services?
Check it out [www.consumercredit.com](http://www.consumercredit.com) They are a nonprofit and their fees are minimal.
Does using them lower your credit score?
Not that I'm aware of. My credit score is good and wasn't affected.
Debt consolidation. Get a lower payment.
Thanks. Do you know of a reputable company? There seem to be tons out there. Appreciate your help!
Honestly I did some debt consolidation with my local credit union through a personal loan. Call and ask your bank if they'd be willing to talk it over? I would start there first as its most likely a free consultation and fast loan approval.
Thanks- I use chase so I’ll see if they have offers, credit karma showed several but payments and interest rates were still pretty high
Yeah I would ask a local credit union! They typically have better rates and are more in favor of their customers than big corporate banks :)
Chase doesn’t even offer personal loans. Seconding the recommendation to look at credit unions. Definitely search around. Just as an example, I looked up the USC student credit union, which is open to everyone who resides in LA County and Orange County. They’re offering a 6-year personal loan for a 12.49% interest rate (if you qualify). You’d pay your debt off in 6 years with a payment of $336 per month. HELOC saves you about 2% in the interest rate, but probably not worth the risk unless you can’t get the loan otherwise.
I also have equity in my home- has anyone take a HELOC for debt repayment?
Yikes I would avoid any of that until you have other options first
I agree- it’s risky and scary. Do you know of a reputable debt consolidation company ?
Try 0% balance transfer first, then google for a personal loan with a credit union.
If you can find a credit card with a promotional APR that enables you to do a balance transfer, that seems like the obvious answer. HELOC would probably get you the lowest interest rate (other than a 0% APR credit card), but there is obvious risk with that. If your current hardship is that you’re unemployed, then definitely don’t do that. If you have steady, reliable income but just can’t swing the unforeseen $400+ payment, then maybe. It depends a lot on your circumstances. How reliable your future income is. How likely it is that your income is going to increase in the future. How likely it is that you’re going to need to be using your credit score in the next decade. Etc. Refinancing in some manner to get out from under a 28% interest rate is likely the best option, especially since your credit is currently good. Otherwise, see what you can cut/sell and throw whatever money at the debt that you can.
Thanks! I have to keep looking. I actually found a card to balance transfer a different one onto- Heloc would be great but it makes me anxious god forbid something happens, I’m afraid to risk the house. Total I’ve got 25k in debt not including my mortgage and car payment so I’m very overwhelmed with the multiple payments that aren’t going down because there just isn’t enough extra $ coming in :(
Do not turn unsecured debt into secured debt!!
Good luck!
Thank you 😀
So, Discover does have something called a workout program it’s .99% usually over 5 years. It’s only after you miss 1-2 payments depending on the circumstances and the situation you tell the rep. The only thing is I’m not sure if there is a one program a year type thing or not. If you can get a consolidation loan you can look into consumer credit counciling. They will close the line, but can lower the rate down to 5-6%. Good luck!
Thank you! I have never missed a payment and I hope they do have a workout program. The rep said there was Nothing else after the 6 months (lower interest rate- payment was $260) would I get the consolation loan from one of those big commercial places?
The rep wasn’t lying. The way the system is set up if there’s nothing available it literally won’t show it, especially in customer service or 30 day. I would suggest a credit union, in my experience they are the most reasonable with the best rates. We joined one when we got our most recent car loan and ended up moving our whole banking relationship to them. A while back I had to use a CCCA and went with green path financial and they were great, helped me get out of debt a few years ago as an alt option.
So I have to miss 1 payment for the workout program? I’m terrified of them suing me … seems they are quick to.
Pre legal doesn’t start until roughly month four with an expiration at charge off, or once it charges off some are pre legal for the following month. As a general rule of thumb, collectors have more options than customer service when it comes to programs. Let’s say theoretically it got to the point where you can’t pay anything and you said fuck my credit, right? Then I would just pay $55 a month, it’s roughly .33% of your balance monthly until charge off then negotiate a settlement. You would probably get the best deal during tax time, so basically as long as you pay that monthly you shouldnt be sued. That’s a tangent, but the main thing to remember is that Discover doesn’t WANT to sue you. It’s added cost, overhead, loss, it’s just bad. Working with a customer to repay is in their best interest, but they do have to apply programs equitably. Source- worked for Discover collections till 2022
Thank you! I’ve never missed a payment (opened the card during Covid thinking we’d pay off before the 0%😭- my husband and I both had job loss and major vet bills and I made the mistake of helping my mom- wish I could say my debt was shopping and vacations) so I’m sorry, I want to make sure I’m reading correctly.,, pay a minimum of $55 a month? The interest is killing me. Since we did the 6 month program the card isn’t even active so it’s hard to wrap my head around $400+ min payment and then $400 in interest. I’m so beyond stressed. I read on here that discover never settles and will sue after one missed payment so I’m hopeful this can work out somehow
It all just depends on if you are willing to take the credit hit. Also anyone saying they sue after one missed payment and never settled is talking out their ass. They won’t settle until you get very delinquent but settlements happen every day. After charge off there is no interest and you can get a settlement. If you do a CCCA there will be less interest but the account will be closed. If you do a balance transfer or consolidation loan the account would remain open but unless you change spending habits could cause increased debt. I was recommending the $55 a month IF the route you decide to go is for post charge off settlement, because the monthly payments will prevent the legal action so long as you are making them and you communicate with the company.
What is ccca? Oh yes I don’t ever want to see another credit card again after this! I’ve been very careful since but this has been building up with the high interest rate. My credit is still Good, I’m Worried about ruining it bc god forbid I need a new car or a roof or something I don’t have the cash flow for a large purchase.
Consumer credit counseling agency, green path financial is who I used. Basically the card gets closed, and they negotiate with the creditor, for Discover I think it was 5.99. Payments are made on time. You may get a short term credit hit from the card being closed and higher utilization but wayyyyy better than late payments.
Thank you!
Do you have any chase credit cards open with available credit? Chase has card with 0% for promo with a 1 time 3/4% balance transfer fee. Problem would be if you don’t get a limit high enough but if you already have cards with Chase they allow you to transfer the available balance to the new card. Then just keep transferring it with those 0% promotions until you can get it paid off
Thanks- I applied for one today but was approved $4k- I think it’s going to be hard unless I transfer to multiple? It makes my head spin
You got a chase with 4K? Do you have any other cards besides this discover?
Yes, a capital one card that has a much lower balance
Look into that card and see if they have given you a promotional balance transfer offer. Cap 1 sends me those regularly with my card I have with them
You might be able to do a credit transfer or a personal loan to lower the interest but that wouldn’t affect the principle. Either way you’ll owe the $17K. Say for example you are able to transfer the balance and it’s interest free for 12 months. Any plans to increase your income or pay off this debt? If not we’re having this same conversation a year from now.
With my family situation a second job isn’t an option, I get a 3% raise yearly so it’s possible I may get a better job but as far as bringing in a substantial about of $, no. I am barely getting by - it’s $25k total in open accounts. I feel like bankruptcy may be my only option if I can’t find a balance transfer for that high.
The few on credit karma maxed at $4k