I have 3 credit cards and they all have a considerably high balance on them. I am trying to find a better solution for paying more than minimum balance on these cards. I have 2 cards that are both around $1500, and a Bank of America card that totals out at $3000. All totaled they come out to about $7,000. My other bills that I have are not taking a hit yet. However, my wife and I are about to take her car payment back over this month.
We have done several things to try and lower our monthly bills and with our taxes, we have payed off a lot of our smaller store cards. However, the car payment coming in is what is going to wreck our finances, but I really can't see myself letting a car go to pay credit cards. What are the problems that may come up if I decide not to pay my credit card bills?
However:
- The only asset that we have is her car. The primary name on the account is neither hers nor mine.
- My car is paid off, but not worth anything.
- My credit is already screwed, hers is near perfect.
Any help would be greatly appreciated!
dont stop paying on cards
Hi John M,
Can you tell as to who was paying for the car? if it is neither in your name or your wife's then would you let me know who owns it?
As for the cards with high balances on them, try bringing those down to minimum. For making more than minimum payments on your cards, try saving more money each month. You need to prepare a budget on your monthly expenses, so that you need not stop the card payments.
If you can't seem to save more, you can try debt consolidation. In debt consolidation, you need to take out a single loan at a low interest rate to pay off all your debts. Debt consolidation needs you to make a single monthly payment in place of many payments on all your accounts. Thus, it becomes much easier to pay off the debt.
Thanks,
Aaron