Been living here in already
expensive Hawaii for 30 years and FINALLY stagnant local economy
surges (low interest/ real estate boom/, sending cost of living from
outer stratosphere to the moon!! :(
I have about $20,000 spread over
five cards (in three years time) in non-frivolous,
"survival" debt racked up from rough times lately and
inconsistent work, yada, yada, yada. I've been making minimum, never
late payments and the occasional "transfer dance" to take
advantage of lower interest rate offers. But man! Am I tired of the
Of course the end is nowhere in
sight with this strategy, even with not using these cards for many
months. I'd like to know if any of your material deals with debt
"termination", that is, dealing with the "Fat
Cats" with an approach of like: "Hey Dudes...What's my
final payment amount?!" (Well, maybe I'll have to address them
not in my regional dialect!) I want to negotiate a rock bottom
payoff to each "Card Dude" (sorry...think I've been here
waaay too long!) and am working with my bruddah (er, brother), on a
possible home equity loan he is getting.
He has been down my road before,
with the "Big Debt Bomb" and might help by loaning me
payoff money at around 5% interest (to him, which will go towards
his loan) Yes, he is THE SAINT!!! Again, does your book go into
detail about this scenario? Please help, this monkey on my back is
gettin' too heavy!! Mahalo Amigo!!
Mahalo for writing!
Great to hear from someone in HI! We
visited family on Oahu and the Big Island in November. It was our
first trip, beautiful place! Paradise is the best description. Now
we have to order from Big Island Candies online. :(
Your approach to using what you
called, the "transfer dance" is good. I've been there,
done that, and survived. Better to dance than be late. If you're
late it will shoot your interest rates to the moon.
And you are correct, there is no end
with this strategy. You could quite possibly have to dance for
eternity. Even with low transfer rates, you'll need more money to pay
off debt. I know many people that have successfully started
part-time businesses selling online at eBay.com. Have you ever thought
about that? You may do quite well! There are many articles about
online selling and other ways to earn income posted at DebtSmart.com.
for a list.
You're also right about negotiating a
payoff with each card-dude. In my latest book, "Talk Your Way
Out of Credit Card Debt" I devoted one chapter to negotiating
settlements. That's where you call your bank and tell them, in a
nutshell, "Here's the deal, either you cut the total debt in
half or I'm claiming bankruptcy."
There are some setbacks with that
option that you need to beware: (1) They won't deal with you until
you've been late for a while because, why should they cut the debt
when you're paying on time. And being late on purpose will certainly
hurt your credit scores and raise your rates; (2) The best they
would probably settle for is 50% of your balance but only if you
make one payment. So it's cough-up $10,000 or no deal. This may work
out if you can get that loan from your bruddah. Something else to be
aware of: Borrowing money from family and friends can cause problems.
Just take a look at Survey
Results: Lending To Friends. However, it can also be a very
good deal for everyone involved.
Lastly, you may want to consider
bankruptcy if there is no situation that will allow you to resolve the
debt. Speak with a local bankruptcy attorney to find out your
Hope that helps!
Please keep in touch and let me know
PS: Good luck with Jasmine on American Idol--we're all rooting for