I am using a throw away because I am beyond embarrassed about my situation.
I have two credit cards, both maxed out. One is with a credit union and reasonable interest. I am making payments on that one. The other is a chase sapphire card with high interest and maxed out. I missed a payment this month of $500 and my credit score went from 680 to 640.
I missed this months payment because I am moving to a cheaper apartment and I needed the extra cash to pay the deposits. Once I move in, I will be able to make payments again.
The interest on the chase card is killing me. I called them to discuss hardship options and they told me they were not offering any options.
My friend who was in a similar situation transfered their balance to a 0% card and got a sofi loan. I am considering doing the same and leaving chase behind to focus on paying off this debt.
I am looking for feedback on balance transfers and consolidating loans. Is this an option or would I be trapped with a different monster?
I am dedicated to paying off this debt. I got a new, higher paying job and have stopped using my credit cards.
Options for high interest maxed out credit card?
byu/Character-Network920 inpersonalfinance
Posted by Character-Network920
3 Comments
If you can get a new loan with considerably lower interest and without high fees then that’s the best way to deal with this financially. But you have to be very careful not to fall into the trap of taking a loan out to pay your bad debt off and then running it right back up again so that you end up with twice the debt.
0% card if you can qualify. $500 a month means a reasonably high debt amount. Probably should reevaluate any credit cards you’re paying for and a budget in general. Good luck
You are on the right track. A new card with 0% transfer offer or a loan with lower interest than your Chase card would be good moves — if you can qualify with your current credit score. Your credit union may also be able to help with a loan, although having a card maxed with them might be an issue. If you can document your new income that should help.
Feeling embarrassed is understandable, just be sure that does not prevent you from taking the best action(s) to get yourself out of this situation. Everyone makes mistakes, and everyone needs help at times. Be sure to avoid predatory loans that sound good but only add to your debt. Reflection and discipline will serve you well.