Dumb Credit Card Debt

[Farang_Ba]

Hi All,

In a nutshell I have around $10k of credit card debt that I still need to pay off. I was immature and had too much fun and also went through job hardships, so I ran up the debt. Anyhow, now I am matured and ready to work harder and pay it off sooner. I am now working abroad in Thailand and can save around $450 per month (or more if I get extra hours tutoring or language center hours). The downside is most of my money is going towards my credit card bills and I feel stretched financially. My minimum credit card bills are around $325 per month, so I am starting to feel overwhelmed. I know I created this monster, so to speak, so I'm not whining and saying how "life is so unfair" or anything . I have considered doing the debt relief back in the USA, but I'm not sure if they'd approve it since I am living abroad (but each month I have sent money home).

Thus, what are my options to get out of debt sooner? I know the easiest answer is to work more and save more each month, but do I have other options to reduce my debt load? I'm tired of the credit card companies making good returns on my credit cards, and am ready to reduce my debt!

Thanks!

[disneysteve]

If you have an extra $450/month after paying everything, that doesn't sound so bad.

It would help a lot if you would list your budget including each debt with interest rate. That way we can help advise how best to pay everything off.

The bottom line is that there is no magic way to reduce your debt besides working hard, living lean, and putting as much extra toward the debt as you can.

[lorraineb]

I'm tired of the credit card companies making good returns on my credit cards, and am ready to reduce my debt!

Like you stated, they are only able to do this because of the decision you made. if you are tired, then figure out how to pay them off asap even if that means scrimping and scraping for a year or two. Then you can be rid of credit cards forever, or start using them to your advantage instead of the other way around.

[Farang_Ba]

If you have an extra $450/month after paying everything, that doesn't sound so bad.

It would help a lot if you would list your budget including each debt with interest rate. That way we can help advise how best to pay everything off.

The bottom line is that there is no magic way to reduce your debt besides working hard, living lean, and putting as much extra toward the debt as you can.

Thanks! I earn around $1150 per month as a teacher in Thailand and pay around $200 a month in rent. Then I have the usual food & drink expenses and nightlife expenditures. Needless to say, I need to cut out the wants and focus on the needs. My credit card interest rates range from 17% to 21%. I figure now I need to focus on the old fashioned method of cutting costs and paying more towards debt!

[Farang_Ba]

Like you stated, they are only able to do this because of the decision you made. if you are tired, then figure out how to pay them off asap even if that means scrimping and scraping for a year or two. Then you can be rid of credit cards forever, or start using them to your advantage instead of the other way around.

Thanks Lorraine, I agree! In the past I didn't stop to think how stupid my debt was, but now I tell myself to think about my debt everytime I am tempted to buy something I don't need, like beers at the bar, or extra clothes, or too many dates with the girlfriend.

[lorraineb]

I would call the credit card companies to see if you can get those rates decreased. No guarantee, but it only takes a phone call to find out and if you do, it can save a lot -- also if they are on more than one card, I would see if transferring the balances to the card that is willing to give you the best rate is possible. Then pick up as much side work as you can until they are paid off...

[lindsay06]

Sorry to hear about your credit card debt. Google brought up a good guide at http://www.debt.ca/credit-card-debt. Sounds like the most popular option would be debt consolidation. But there are more drastic ways to resolve your debt but I think they will affect your credit quite a bit.

[Farang_Ba]

I would call the credit card companies to see if you can get those rates decreased. No guarantee, but it only takes a phone call to find out and if you do, it can save a lot -- also if they are on more than one card, I would see if transferring the balances to the card that is willing to give you the best rate is possible. Then pick up as much side work as you can until they are paid off...

Thanks, I will also try that! I have been transferring balances to my lower APR cards to help, but my next step, I believe is to call the credit card companies and try to get the APR lowered.

Sounds like the most popular option would be debt consolidation. But there are more drastic ways to resolve your debt but I think they will affect your credit quite a bit.

Thanks, I'll check out those options.

[Jerry91]

Well, it will be completely the discretion of the settlement companies as to whether or not they will work with as you’re presently staying in a different country. Nevertheless, there is no harm in asking and clarifying the matter.

[Manthony]

Call the credit card companies and negotiate a lower rate. Even if they say "no", its still worth the credit card. CC companies would rather get paid something rather than you possibly not paying at all. Also, when you finally do pay off the debt, or an individual credit card, they will speed up the mailing on those cash advance 0% interest checks to put you right back in debt again. So be wary of those too, or ask them to stop sending them.

[maat55]

Working more hours and not going out will help a great deal. Focus on eliminating your debt as a quest. My entertainment for months was reading personal finance books I bought a Goodwill.

I'm currently working 12 hour days to make up for lost ground over the past year. I'm not big on eliminating debt in a slow methodical way, I cut the budget to the bone and work a lot to get where I want to be.

It's not fun paying the piper so make it last the least amount of time possible.

[snafu]

Sawadee Kha, having lived and worked on Silom, I know you can choose to 'live local' and squeeze every baht to clear your debt. Keep telling yourself you're not a tourist...it's time to get real. I hope you've/your school has done the right paperwork as overstaying has serious consequences. It's easy to pick up extra hours and get tutoring gigs - particularly oral English. You're paying higher interest rates on CCs because your available credit/usage/volume of debt ratio was too high. One saving grace is that you're pretty much forced to pay cash in most Thai venues. I suggest you give yourself a budget subtracting rent, electric, transportation and food. Give yourself an allowance for a couple of beers and weekend date but really... you'll be too busy making lesson plans and cold calls looking for work. Get business cards done up to give anyone who needs/uses English to move up at work.

It would be wonderful to return Stateside free of debt more mature from your experience in SE Asia and pick up where you want. I'm confident you can do it if you make this your priority.