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ljpriano

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I owe a lot of credit card debt (about $15,000) my interest rates are high 19% - 21%. consolidate?
I don't own anything but my car and am basically living paycheck to paycheck to pay my rent & credit card debt. I pays a little more than the minimum on each card, because thats all I can afford. I was hoping I could get a personal loan to consolidate my debt, lowering my interest rate and paying off my debts quicker. But I cannot seem to get a loan anywhere. I don't have any collateral, so a bank won't give me a loan. I tried calling my credit card companies to lower my rate, but because my debt ratio is so high, they won't lower it. Again, I haven't missed any payments on any card, but I am barely surviving. Any suggestions on how to get a loan or should I just declare bankruptcy? any insight would be helpful. I am planning to find a cheaper place to rent, but my lease isn't up until next year.

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NO TO BANKRUPTCY!!!!

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Since your debt is credit cards, which are unsecured debts, they will fall off your credit report within 7 years of last payment but a bankruptcy is on your credit report for 10 years, plus you have to start all over building your credit.

There are cards that will consolidate your credit card debt.  I had high interest cards and did that myself quite recently, and my usage was in the 80% range.  Check the credit cards here that offer the cards (they talk about balance transfers) and you want to try for one that offers a 0% interest for a year or longer.  That way the bills will be paid off in short order.  I haven't checked here on that but I did check with a credit union and got a lower interest card with the 0% for 12 months and a higher credit limit.  The bills are going down real fast.

If you don't see anything here, check with a credit union in your area that you may be eligible to join and talk to the representative in person.

You are doing very well by paying more than the minimum on the accounts you have.  Just try living on a cash-only basis and not charging anything you can't pay in full with the next statement..  And searching for a lower rent residence to try moving into after your lease is up is also very smart.

Another thing to consider is a part-time job in addition to regular work with the goal of that income to paying off the cards. 

Hope this helps.

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ljpriano

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Did you have to open a checking or savings account with the credit union to get the credit card to transfer your balances? Thanks for the info. I'm dropping the bankruptcy idea and I'm going to try and sell a bunch of stuff that I don't need anymore. When my lease is up, I am going to really downsize and save quite a bit. I'm going to put that $directly to the credit cards.

thanks again!!!

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