Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
GailaRick02

2 Contributions
0 People Helped
I have over $4000 in credit cards should I just file for bankruptcy?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
784 Contributions
297 People Helped

That's not very much debt. Set up a budget to see where your dollars go. There a numerous articles here and other places online to understanding debt and paying it off. 

Reply by
GailaRick02

2 Contributions
0 People Helped

Money is tight and can't pay all at once. I was thinking on getting a personal loan and paying off all debt?  Also, any help there are credit cards that were charged off/negotiated paid off back in 2009/2010 and they are still reporting to my credit report this year. How is that possible? Are they allowed to do that? I also have credit inquires that should have also been removed earlier this year but are still there as well. Thank you! 

Top Contributor
784 Contributions
297 People Helped

Your closed accounts will continue to be reported for about 7 years.

If you have charge offs; I would think your chances of obtaining an unsecured personal loan are slim, or would come at a high interest rate. That interest rate would still probably be less than the credit card interest rate. 

I was in the same situation years ago.  The credit card companies wouldn't work with me, so I contacted Lexington Law and for a fee; they negotiated to close my credit cards and had the interest rates reduced to 4% and 6%.  A credit repair company might be an option for you.

Reply by
GailaRick02

2 Contributions
0 People Helped

What about if I transfer all my credit cards to one card, would this also help me?  Credit karma offers this as an option for me but don't know if this is best.  If this will help would it also bring my credit score down being it will show my numerous credit cards as closed and/or transfer balance? 

Top Contributor
784 Contributions
297 People Helped

Most zero interest or zero balance transfer cards are available for people with an excellent credit rating. Otherwise fees vary from 3% to 5% for transferring balances. You'll need to read the fine print if you plan to transfer balances.  There are some excellent articles on this website and many other sites. You should read up on credit to educate yourself.

Transferring balances to one card will probably lower your score because the card utilization will be high. However, if it's at a lower interest rate than what you're paying now; it will help you to pay the principal balance down faster. 

If you plan on transferring balances, then you must NOT use the cards you're transferring the balances FROM.  You can keep the accounts open to maintain your credit availability.  If you use the cards you've transferred the balances from, you'll just increase your debt and never get ahead.  Cut those cards up if you find it difficult to resist the temptation to use them.

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.