Girlfriend needs Credit/Debt advise?

My girlfriend who shares a house with me has been in denil about her credit cards. So I found out the other day that she has about $11,000 in credit card debt b/w 4 cards. She called around about consolidating her debt into one monthly payment but the best interest rate she could get was like 16% !! She has credit score around 700 or so and has never been late. The only other thing that I could think of would be to do balance transfers to one 0% apr credit card. I don%26#039;t even think that would work, because I don%26#039;t know if she would get approved for the full amount with her debt to income ratio. Any advice would help.

Girlfriend needs Credit/Debt advise?

Do you own or rent your place ?

If you own your home you may want to take out a home equity loan to settle the payments and realize a huge savings on interests. When you compare credit card interest to what you are paying on a home equity loan it is an obvious choice.

She may also want to consider taking out a loan at the local bank or a line of credit with a lower interest rate than what she is paying now and knocking down the debt on the credit card.

Last resort is use your savings for retirement and absorb the tax costs to reduce the interest charges, with the stock market being what it is you, it might be money better invested to get rid of consumer debt.

Best of luck in your choices.

Girlfriend needs Credit/Debt advise?

700 is a ok to good score. I would say tell her to diligently pay off her balances for 6months to a year, and call the credit card companies after that time frame to renegoniate lowering the payments of her interest rate. Please Please dont go to credit consueling. Here%26#039;s the catch: They will most likely get her to do a %26quot;debt management plan%26quot;. they will lower her interest rate through c. consueling if she agrrees to close her accounts, then she can make a lump sum payment to them, then they payout to the cc companies. She doesnt want to do that. $11,000 can be paid back in 24 months, she just have to make bigger payments and not charge them any longer. You have more negotiating power once you make ontime higher payments, and then call them after 6-12months later, and the cc companies are more willing to work with you; even if she has to get 2 jobs.

Girlfriend needs Credit/Debt advise?

She needs to cut up her cards and stop using them right now. Then put every single cent she can into paying for what she already bought. Pay off the smallest balance first while making minimum payments on the other 3. When that one is paid off, do the same to the next one.

Don%26#039;t get an equity line on your house. Until she is able to get a grip on how to manage credit, you sure don%26#039;t need to be financing her spending sprees with your home equity. You%26#039;ll have the debt on your house and she%26#039;ll go out and rack up another batch of credit card debt.

If she can get a card with a 0% balance, that would be good, even if it%26#039;s not for the entire 11k she owes. Let that account go on min. payments while paying off another one. Just make sure payments are on time because if not, she%26#039;ll lose that 0%.

Girlfriend needs Credit/Debt advise?

Take the 16% which is most likely equal to or less than what she is paying now, and then cut up the cards, keep the accounts open but cut up the cards or she will use them again and be in worse shape. Figure out what she is paying now monthly on the cards, most likely more than the loan and pay that amount or more on the loan every month