Want to make a bigger dent in CC debt, already pay minimum every month

[Petunia 100]

I have a MS degree from a top 5 school. I studied engineering and construction. Life took me to NYC. This isn't the exact job I wanted, but it is related to my studies. That is why I am looking for a new job (partially due to my own interests and partially due to money). I know I am currently a bit underpaid but times are tough in construction, as nobody wants to build things since the 2007 crisis.

I am interested in calling NFCC but by calling, am I obligated to enroll in some program or have my creditors know? Or will it affect my credit score? Basically I want to call them for information and see what they say. I am definitely open to enrolling in programs they have if they seem right for me. I don't want to be bound to anything just by calling them.

Calling for information will not obligate you.

[Petunia 100]

I am aware my CC APRs are not THAT bad for CCs. But of course, I am still struggling and looking for ways to lower it. I did look those p2p sites mentioned and it seems that I am not eligible to take out that large of a loan (again, probably due to my debt to income ratio). I looked at some local credit unions and some of them do offer slightly lower rates, but those are what were advertised so it may not end up saving me much money in the long run.

At this point the best would be to continue with my plan of cutting spending/getting more income. I am going to call that organization Petunia mentioned if it doesn't obligate to do something I may not want to do. I am also going to try to find other ways getting of money to get my Discover card back under the limit, and maybe I can try finding a 0% APR credit card with a large enough credit line to transfer to.

If I get my Discover card back under the limit, but barely, how much can it help my credit score and how long will it take? Like I said, I have never had a late payment but my maxxed out credit cards are not helping the situation. The last time I checked my score was last year and it was about 700. It may be lower by now because of my maxxed out CCs.

Go to this site and use their "what if" tool: www.creditkarma.com

[Gailete]

Don't look for the 'easy' solutions of debt consolidation, boyfriend handouts, etc. Take the hard road and you will remember for a very long time how hard it was and it will keep you from getting in that kind of mess again.

The one big thing that jumped out at me, I'm assuming you are a woman, is the $50 a month on toiletries! Unless you are adding toilet paper and toothpaste into that total I haven't a clue how you can be spending that much, but it doesn't have to be so. I see the ads and I see the prices and whether you spend $50 a month to pretty up your face, nothing about you will look as good as the glow of a face with no stress from credit card debts. That amount can be chopped to a minimum of maybe $10 (and I'm being genrous as that is still $120 a year, more than I have spent on that stuff in over 11 years) a month and the other $40 can go towards cc bills. I realize that many may not agree but make-up is a want not a need in any circumstance.

You can also whittle that grocery bill down significantly. It is about what my husband and I spend a month, if not more. I remember living outside of NYC years ago and it was HCOL then but I ate my Ramen, boxed Mac & cheese, tuna casserole, ate my meals at home. No one says you have to eat like you are rich. Poor people can't and that is the difference now. Back in the 70's when I lived there, there were no cc for people like me so all I had was what cash I had to spend on groceries. So if you HAVE to have a certain coffee, yogurt, etc. try the cheaper brands. Promise yourself when you are all paid off and you still want the other brand that you can then have it. But now you have to be tough. Every time you think about spending a penny think about whether it is a want or need and be honest.

If boyfriend really wants to help, tell him you would appreciate a date where he picks up the tab for dinner once a month or so. I assume any guy that can pick up that much debt and pay it off can also afford to take you out once in a while. Defintely don't take money from him!!!! If you break up, and these things are known to happen, it will be a real strain when he tells Judge Judy that it really was only a loan!

Good luck. There are ways to do this, but borrowing your way out of debt won't work.

[LivingAlmostLarge]

Have you considered moving? You can't afford NYC and honestly not many people can. You'll get farther ahead in life if you found a job elsewhere that has a lower cost of living. That will give you financial freedom to pay off debt, save, and have choices in your career.

Something many people don't realize is if you live somewhere cheaper and are able to save, you can choose to stay at home with your kids, choose to retire early, chose to change careers to something less lucrative because you enjoy it more. I think options are what comes from living somewhere you can afford.

[batgirl]

Calling for information will not obligate you.

Thanks!

[batgirl]

Don't look for the 'easy' solutions of debt consolidation, boyfriend handouts, etc. Take the hard road and you will remember for a very long time how hard it was and it will keep you from getting in that kind of mess again.

The one big thing that jumped out at me, I'm assuming you are a woman, is the $50 a month on toiletries! Unless you are adding toilet paper and toothpaste into that total I haven't a clue how you can be spending that much, but it doesn't have to be so. I see the ads and I see the prices and whether you spend $50 a month to pretty up your face, nothing about you will look as good as the glow of a face with no stress from credit card debts. That amount can be chopped to a minimum of maybe $10 (and I'm being genrous as that is still $120 a year, more than I have spent on that stuff in over 11 years) a month and the other $40 can go towards cc bills. I realize that many may not agree but make-up is a want not a need in any circumstance.

You can also whittle that grocery bill down significantly. It is about what my husband and I spend a month, if not more. I remember living outside of NYC years ago and it was HCOL then but I ate my Ramen, boxed Mac & cheese, tuna casserole, ate my meals at home. No one says you have to eat like you are rich. Poor people can't and that is the difference now. Back in the 70's when I lived there, there were no cc for people like me so all I had was what cash I had to spend on groceries. So if you HAVE to have a certain coffee, yogurt, etc. try the cheaper brands. Promise yourself when you are all paid off and you still want the other brand that you can then have it. But now you have to be tough. Every time you think about spending a penny think about whether it is a want or need and be honest.

If boyfriend really wants to help, tell him you would appreciate a date where he picks up the tab for dinner once a month or so. I assume any guy that can pick up that much debt and pay it off can also afford to take you out once in a while. Defintely don't take money from him!!!! If you break up, and these things are known to happen, it will be a real strain when he tells Judge Judy that it really was only a loan!

Good luck. There are ways to do this, but borrowing your way out of debt won't work.

The boyfriend offered a handout but I was only considering borrowing from him. But I've already decided not to even borrow from him, because I think that would complicate the relationship.

The toiletries include things like household supplies, medications, etc. I don't buy makeup because I don't use it very often and I already have a lot. I have the cheapest health insurance my company offers so my medical bills are all out of pocket.

Definitely trying to lower even more on groceries. I am shopping sales and such. I think it still can be lowered more than what I'm doing now.

[batgirl]

Have you considered moving? You can't afford NYC and honestly not many people can. You'll get farther ahead in life if you found a job elsewhere that has a lower cost of living. That will give you financial freedom to pay off debt, save, and have choices in your career.

Something many people don't realize is if you live somewhere cheaper and are able to save, you can choose to stay at home with your kids, choose to retire early, chose to change careers to something less lucrative because you enjoy it more. I think options are what comes from living somewhere you can afford.

I have already considered that - NYC is an expensive city to live in. There are a lot of costs with moving (both money and personal costs), so I have set a goal for myself - if I cannot improve my situation by this September/October (meaning pay more than $800/month towards my CC bill, because that is what I'm paying now), I will move.

[Esozh]

I have to applaud you on your follow through and effort. It sounds like you have a plan. Have you given any more thought to the second job? Explore that in the meantime perhaps.

[batgirl]

Yes. I actually have an interview tomorrow for a tutoring job. And I signed up for focus groups to earn some extra cash.

[cooliemae]

I didn't think about it earlier, but you might try taking survey's online. I use mysurvey.com and have made about $100 bucks over the last couple months.

[Gailete]

The toiletries include things like household supplies, medications, etc. I don't buy makeup because I don't use it very often and I already have a lot. I have the cheapest health insurance my company offers so my medical bills are all out of pocket.

Pretty much then, those things aren't toiletries. Not trying to make you look bad or anything, but when you are deeply in debt, you have to flag what you spend appropriately. Household supplies like cleaning stuff, toilet paper, etc. generally wouldn't fall under toiletries as those are generally more personal in nature. Same with medical bills. Those need their own spot on a budget as they have to be paid (they aren't wants). But even if you are using $25 a month for cleaning supplies for your place, there are on line many cheap practical ways for making them without all the scented chemicals etc. the only thing I buy of that nature anymore is toilet bowl cleaner as we have hard rusty water, but everything else we make, depending on what we need, using a combo of bleach, ammonia (don't use those two together), alcohol, baking soda (the best cleaner in the world). Paper towels in almost any instance can be substituted with rags from worn out towels. Paper napkins can become cloth napkins, generally with a quick trip to the local thrift store. Cloth napkins hold up better and can last through several uses before being tossed in the laundry with your towels. More ideas of this kind can be found easily on just about any frugal living site. I think we even have some forums here that teach you how to save money on these types of things. I realize that our society has been indoctrinated into thinking that cloth napkins are 'gross', but since paper ones have only been available for about the last 50-60 years, people used to use cloth for centuries before that with no ill effect (same with cloth diapers, hankies, etc). Now you see that saying you spend so much on cleaning supplies, etc. there are ideas for even whacking that cost. Even if you save $10-25 a month, that is $10-25 you didn't have against your bills prior to this.

Frugal forums also have lots of ideas for getting your food costs down. Making food from scratch saves so much it is unbelievable. The other night for dinner I made some twice baked potatoes and steak for dinner. The sirloin steak was small and had been on mark down so it would sell fast (my theory on beef is they talk about aged beef as a good thing, so buying it before the deadline when it gets marked down is no problem and we never got sick on them and they taste fine). Anyhow as I went to eat, I calculated the cost of my meal and it came to about $2.50. Less than you can buy a quarter pounder for at McD and probably way less than just about any restaurant meal in NYC! If you can ever get to a library book sale, then you will probably find a couple of good all purpose cookbooks and specialty cookbooks that can help you in your frugal journey towards being debt free. There are also lots of websites with recipes for frugal food as well 'high class' food. As long as you are getting a balanced menu, with the frugal food, stick with that. On Pinterest, I see lots of recipes being pinned plus ideas for once a month cooking and crock pot cooking. This is a road you don't have to travel alone!

Each and every bill in your bill you need to evaluate and see if there is a way to cut it. With the NYC housing market, it probably is silly to think you will get something cheaper. My son lives in a one bedroom apartment in our area for $350 which was much better than my apartment near NYC in the late 70's that I paid $90 a month for! But if you pay your own utility bills, can you go lower with heat and wear a sweater or higher with AC and only use it above a certain temp like high 70's? Many sacrifices you make now you will either continue with once your bills are paid off or you can tell yourself that once they are paid off, if you can afford it you can go back to being warmer and/or cooler.

One thing you shouldn't be focusing on so much is your credit score. It will take care of itself as you handle your bills and get them whittled away. Once you get things paid off then you can use one card if you like to pay for your usual things, but delete the amount from your checking account whenever you do so that you don't over spend. Pay that card off in full each month and if you use a reward card you can get gifts or cash back for using it for free. We have to use cc for our businesses as it is just about the only way to buy something on line for our businesses since we can't stuff cash into the air going up to the satellite! LOL But we use them responsibly. Our credit score is more than fine. We had to get a new/used car last summer and while waiting for all the paperwork I asked if their was any problem with our credit and the salesman laughed and said we had better credit than most people coming there. We do nothing with our credit score in mind as I am firmly convinced that the best thing for your credit score is to pay your bills on time, have some money in the bank, and pay off all cc in full monthly. Trying to better your credit score seems to give some people illogical thoughts on how to handle their money (not saying you are doing this).

Wishing you much success with this challenge that is ahead of you. I feel your pain. I was once in over $42K in cc debt plus a mortgage and car payments. The biggest thing I had to do to get rid of it was divorce the spend happy husband (my son calls him Mr. Big Bucks!) and sell our house. It wasn't nice to say the least.

[batgirl]

I didn't think about it earlier, but you might try taking survey's online. I use mysurvey.com and have made about $100 bucks over the last couple months.

Thanks, I just signed up.

[breathemusic]

COUPONS!

You mentioned looking to lower your grocery bill. Not sure where you grocery shop, but if they take coupons, then start clipping coupons. You don't have to be one of those extreme couponers. But they can difinitely save you some money.

I realize that just trimming a few bucks here and there may seem like it will take you forever to pay down your debts, but if you can combine cost savings measures with a little part time work, then the moment you're able to pay off even 1 of your credit cards, you'll free up that minimum payment so that you can apply more money toward the remaining debt faster and things will really speed up.

Just hang in there and remember how good it will feel to finally be rid of the debt. Also, be sure to compare your spending to your budget on a regular basis. if you only tally things up at the end of the month, you could go way over budget before you realize it.

[Tree0164]

Thank for sharing your budget. I know NYC can be crazy.

Can your cut down your grocery budget-do a weekly budget try to keep it to $60 a week. That would give you an extra $100 a month to put towards your debt. Are you bringing your lunch or buying out? You may need to eat mac and cheese for a few months to make the sacrifice.

You can call your current credit card companies and see but where you are maxed out they are probably not going to budge.

There are jobs that you can work on weekend only-it is a short term sacrifice. Here is a recent thread on Dave Ramsey facebook page about getting a 2nd job https://www.facebook.com/photo.php?f...2180885&type=1

[Gailete]

One small thing I have done to get rid of cc debt. It doesn't seem like much at the time but it feels like much because it can make a difference. I used to round up cc bills to the dollar. So if the minimum is $45.36, I would pay $46. And don't charge any more on it. In a few months with some tight cutting of funds elsewhere, you can round up to the next five dollars. So $45.36 would be $50. Your next bill when it comes will reflect this and be closer to $43-44. Keep paying that $50. Then eventually add on rounded up to $10 or $25. This is part of the snowflake kind of paying those bills off. It may not seem like much but you get the satisfaction of paying MORE than the minimum. As each bill comes and as long as you don't charge any more, the bill will be going down and down and down and then one day you realize that you have enough to finish paying off that bill and maybe in another month or two another one. etc.