Looking for Financial Advice.

Hey does anyone out there have any suggestions about paying down 30k in credit card debt? This is not me btw.

Mom had some good suggestions

– pay cash
– cut up the credit cards
– auto deduct from your paycheck.

I was wondering if you can take out personal loans or something else to at least not get the 18% interest rate hit. I’m open to ideas.

One thought on “Looking for Financial Advice.”

  1. Well, I don’t know the person you mentioned has a house or not. If he has, the best way is to re-mortgage his house. In order words, take loans out of his house. The loan is at much lower rates and it has tax advantages too – getting refund from the government.

    The second possibility is that “Does this person has life insurance policies or other policies that he can borrow money from?” It usually offers at much lower rates.

    If person does not have a house or life insurance policies, he may be able to look into other credit card offering companies. In some cases, they offer initial rate much lower than 18% for a couple of months (say at 4.5%)and including several their checks for you to use to pay back this 18% shark loan. Make a couple of switches and you are there – debt free.

    Or, the person can just call the credit card company and indicates to them the situation he/she is in. To see weather they can offer him a temporarily relief in some fashion. Remember, everything in this world is negotiable – sometime is a win-win situation for both. If he/she defaults, that is no good to the credit card company too.

    There is another way to tackle this, is simply asking that person contacts his/her parents or closed ones to get personal loans with lower interests and longer pay back time frame. Just tell them the truth and I am sure a lot of parents will help provided with his/her promises that future spending will be curtailed to the minimum, of course with some solid plans and tangible proof. This is what the parents are for in emergency, right?

    But, the most important thing right now is to spend less. That part has to be dealt with right away. Auto-deduction is very good part of it, I think.

    Discipline is the key for everything and everyone has some troubling times. So long one can learn from it and find a way out. It is not that bad. To admit to have credit card debt problems, it is already 85% there in a way of solving the problem.

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