I want to cancel all my credit cards and pay them off, Is there a plan that works to lower my interest rates?

Deal Score0

I have both personal and business(non-profit) credit cards that are unsecured. Can I combine them through a DMP? (debt Management plan)

4 Comments
  1. Reply
    sassy2
    June 26, 2011 at 10:13 am

    Not the business ones. Start by paying off the one with the highest interest. Soon as it is paid in full, cut it up. Then send that payment plus more to the next and so on. Check out Suze Orman’s site. for paying down credit cards

  2. Reply
    CatDad
    June 26, 2011 at 11:11 am

    You can enter a Debt Management Plan (DMP) with a non-profit credit counselor like CCCS (Consumer Credit Counseling Services). Contact your local Red Cross for a referral. They can negotiate lower payments and interest rates. They do not negotiate settlements.

    They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to “enrolled in debt management.” This does not damage your credit, but it may make it impossible to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would probably be denied while you’re enrolled in the CCCS debt management program…. Otherwise, it can be a very good way to deal with your debt.
    ===============
    Stay away from any “debt consolidation” company that promises to cut your debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements.

  3. Reply
    Olivia
    June 26, 2011 at 12:04 pm

    YES YES YES… you need to email me..so I can tell you what I did.. (dont want to add personal info here) BUT I was able to get my credit card interest rate lowered to 2% on all my cards… my credit score was raised because the balances came down fast… because so much more was going to the balance… Email me at oliviaj@skybest.com!!!!

    Thanks

    Olivia

  4. Reply
    John P D
    June 26, 2011 at 12:39 pm

    according to dave ramsey, you pay off the smallest bill first then the next smallest…it is called a credit snowball….

    daveramsey.com

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