How To Reduce Debt?

[jwthornhill]

Currently, we owe $5,959. on an American Express card at 21.9% interest and we owe the IRS $6,409. at 11.25% not including monthly penalties.

My wife and I were trying to figure out a way to reduce the interest on these debts.

Any suggestions would be greatly appreciated!

NTDBF

[Hot dog]

Only thing I can think of is to open a new card and transfer the balance to a 0% card for a year or to a 3.9 for the life of the loan card but I know you had to have thought of that already. Good Luck!!

[ktmarvels]

Have you tried calling and asking them? The IRS probably won't be as likely, but credit card companies often will.

[mekish]

Only thing I can think of is to open a new card and transfer the balance to a 0% card for a year or to a 3.9 for the life of the loan card but I know you had to have thought of that already. Good Luck!!

i second this; if you still have a decent credit rating, just apply for another credit card and transfer the balance. if you get a 0% interest rate introductory period e.g. 12 months, use that window to pay down your other debt with the IRA.

[jwthornhill]

Only thing I can think of is to open a new card and transfer the balance to a 0% card for a year or to a 3.9 for the life of the loan card but I know you had to have thought of that already. Good Luck!!

Which one would you recommend?

Thanks

[Ima saver]

I would go with a zero card. When I decided to pay off my credit cards, I did that and when that one ran out, I would get another zero card.

[Aleta]

I would think that any card would be better than the 21+ % rate. I would pay off that credit card first with the lowest rate card you can find and just pay the government as they have set up for you (for right now). Are these your only two debts and do you have an emergency fund?

[Hot dog]

I get offers all the time in the mail offering 0% for a year there are a few with 3.9 for the life of the loan. Isn't there some kind of link on this forum that lists all the CC offers out there? I get at least one offer a day usually more but I guess you could just go to a couple different cites on the internet to see if you qualify. One I have recently got was from Emigrant Direct CC for 3.9 for the life of the loan you could try them.

[Aleta]

Can you go to bankrate.com? There's another one called lowermybill.com. You might check that one as well. Or any of the Money magazines. Kiplingers, Money, to name just a couple.

[n_vizion]

If you get a 0% credit card, make sure that you pay more than the minimum. Your interest is accuring behind the scenes if you do not pay or transfer by the time the deal expires.

You also want to ensure that you pay the minimum by automatic draft. If you miss one payment, you are back to double digit interest rates.

[Hot dog]

Also call any of your other cc that do not have a balance and see if they will give you an offer if you don't want to open a new one