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What should I do?


MICHAELINIL
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Hey!

I am currently around $17000 in debt to various creditcard companies and I pay on time and have for the longest time as well but I can only afford to pay the minimum payment each month which kind of sux. the creditcard companies charge between 15-23% interest, so they will take a while to pay off. I just got a letter from Bank of America in regards to my creditcard telling me that they will increase the interest rate from 22% to 27% based on information on my creditreport, I owe them around $3000 and I have NEVER been late with a payment so I don't understand it. I called them up and asked them and they were not willing to change their decision at all. I ordered a copy of my creditreport as well and everything looks fine or atleast everything is paid on time and my creditscore is 655 which is not too bad.

My question is, I am so sick and tired of just paying the minimum and not getting anywhere and on top of that they raise the rate anyway, what should I do??? Debt consolidation? Debt Validation? or what? Just skip out on paying all together? What would be best in my situation? I don't own a home but plan on buying within the next 2 years. My creditcards are maxed out and I just want them to atleast get a little bit smaller every month, I am not able to pay more on them then I pay today, if I could I would. Bankruptcy? Anyone can help, please!

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first of all stop using them.. and yes creditors are known for raising rates even if you do pay on time because you have too much credit... you can do a debt consolidation but it will show up very negative on your reports... I would suggest you start snowballing your debts.. get Dave Ramseys books financial peace to help get you started.

should you skip out.. sure if you want to run the risk of lawsuits, and garnishment of your wages for starters... dont be foolish.. you got yourself in.. its hard to get out but you can do it... so CANCEL your cards.. QUIT using them see if you can get your rate lowered and start snowballing NOW

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Guest mikey

carolina is right...u got urself into this 17000 debt.

cut them cards up. u obviously dont know how to use them if all u can afford is the min. payment. the reason ur rate has gone up is u have too much debt on ur report. doesnt matter that u pay on time, BofA can see ur heading down the same path all cc debitors end up...in court.

if u think u can dodge them and not pay, think again....the days of skipping out on debts and waiting it out i believe have long gone.

for that amount you will definitely be served or have a judgment against u before its all over. i would suggest stop paying on them and hope they offer a settlement and use your tax return to pay off as many as u can. the rest.....well, keep paying....and at that rate, it will never end and u will be paying on them till u die.

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Michael: I also recommend Dave Ramsey's website and his books as a way to learn how to climb your way out of debt. You will not be in a position to purchase a home in two years with that much unsecured debt since by paying the minimums each month the balances will continue to climb rather than decrease. Do you have items you can sell on eBay or can you work a second job with all income from those ventures doing directly to your unsecured debt? Any expenses you can temporarily cut out (cable, cell phone, entertainment) so that you will have more $$$ to throw at the debt? You do not want to file for bankruptcy protection on $17,000 of unsecured debt, especially since you're still current. By simply paying down your balances your credit score will continue to increase and you'll put yourself in a great position for purchasing a home.

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