Hey everyone, I could really use some advice. Right now, I’m paying the $250 minimum payment each month on a credit card with a 29.9% interest rate, but I just can’t afford to pay any more than that at the moment. I tried calling Capital One to ask for a lower interest rate, but they wouldn’t budge. I doubt they’d be willing to reduce the balance either. What should I do? I’m trying to find extra income on the side, but that high interest is really making things tough. Should I just let it go to collections and then negotiate with the collection agency?
I’ve already cut back on expenses and am actively looking for part-time work, but I just can’t make progress right now. Any advice or recommendations would be greatly appreciated!
Cut up your credit card first. Secondly, attempt to move the balance to a different card with a 12-month “no interest” period.
How is a balance transfer performed?
Also, how can one locate a 0% card?
Don’t screw Capital One at all costs, or otherwise they’ll sue you and keep the case hanging over your head for 7.5 years.
Make a phone call to request a reduction in interest for cancelling the card.
Your best option to tackle this debt is to transfer the balance to a 0% interest card. Right now, your $250 minimum payment is being eaten up by the 29.9% interest, which breaks down to about 2.5% per month. It’s like spinning your wheels without making much progress.
Try making payments every time you get paid instead of just once a month. If you’re paid weekly, set up an online payment of $62.50 each week. If you’re paid bi-weekly, make two payments of $125 each per month.
It’s also important to look for additional income, even if it’s something like DoorDash or dog walking, to help reduce the debt faster.
Whatever you do, don’t stop making payments. Missing them will harm your credit score, and if it goes to collections, there’s no guarantee they’ll negotiate. They might take you to small claims court and garnish your wages instead.
Wishing you the best of luck!
Why is your minimum amount so high?
It sounds like credit cards aren’t the best fit for you right now. As others have suggested, it might be a good idea to cut up the card, apply for a hardship program, and avoid using credit cards for a while to focus on paying down your debt. Credit cards can be useful, but they need to be used wisely to avoid falling into these situations.
In the meantime, it’s smart to look for another job, as you mentioned, to help tackle the debt more quickly.
Later on, once your credit score improves, your income stabilizes, and you have a better understanding of credit card use, you can consider applying for another card. Some people may argue against using credit cards, but with proper strategy and discipline, they can offer benefits like building your credit score, protection, and reward points.
Best of luck! I hope you’re able to get through this.
It sounds like credit cards aren’t the best fit for you right now. As others have suggested, it might be a good idea to cut up the card, apply for a hardship program, and avoid using credit cards for a while to focus on paying down your debt. Credit cards can be useful, but they need to be used wisely to avoid falling into these situations.
In the meantime, it’s smart to look for another job, as you mentioned, to help tackle the debt more quickly.
Later on, once your credit score improves, your income stabilizes, and you have a better understanding of credit card use, you can consider applying for another card. Some people may argue against using credit cards, but with proper strategy and discipline, they can offer benefits like building your credit score, protection, and reward points.
Best of luck! I hope you’re able to get through this.