UGGHH!!! What do I do now?

[maslex]

So I have a Disney Chase Credit card (well, I really don't have it anymore, cut it up and cancelled it...but I'm just paying on the balance right now---$7010)

Anyhow, I applied for a different card with a 0% interest rate for 18months so I can transfer this balance over. I was approved and the card should be here within the next 2 weeks. The thing is though.....it only has a credit limit of $4200. Do you think I could ask them for a larger limit so I can transfer the whole $7000 on it? Or should I just transfer the $4200 and then pay on 2 separate cards?

I was originally going to get a personal loan from the bank but the interest rates are much higher. So what would you do? I just really need to get this stupid bill paid off.

 

[pyrxtc]

It will look better on your credit of you have a card that is not maxed out. I would transfer some money over and then pay on two cards. Half at 0% is still better than all at whatever percent. If you canceled it, then your credit report will now be showing that you only have $4200 credit but have spent $7010. Not a great thing.

 

[Duckiedee]

I would transfer the whole balance if you can and NOT cancel the other card just yet - BUT I wouldn't use it. If you will be tempted to use it I would call and cancel it. It's very hard to pay down an 18% interest rate and even if you just pay the minimum payment on the 18% card and try to pay down the promotional rate faster - that is money you are NOT using to pay down the balance.

Just remember do NOT use the promotional card to make purchases while it is at the lower rate as those charges will automatically be charged a higher rate than the transfers and will be paid off last.

 

[DawnM]

Doesn't it cost a fee to transfer money over?

Dawn

 

[csharpwv]

If I were you - the first thing I would do is call Chase and try to negotiate a lower rate on your card. 'Usually' they will offer something if it means keeping you as a customer. To have a credit card with a credit limit of over $5,000 - you must have a pretty decent credit rating. If you have a pattern of paying your bill on time, using the card fairly regularly, and are on time with your other bills and payments a lower interest rate isn't out of the question - especially with a balance that high.

Next, cut out all unnecessary spending to get your credit card paid down/off. If you can pick up a side job - preferably something that doesn't require regular hours - if you have skills or talents that you could use to make money - DO IT!
OR you could always work one or two days a week as a waiter/waitress - be amazing- and get good tips! With school getting ready to start back - you could be a tutor if you are confident in your academic abilities. There are tons of ways to make extra money!

It's a tough economy - and even though we are told that we are on the 'rebound' - I'm not seeing it so much. I believe it to a certain degree as evidenced by the market behavior - but the "Wanted" ads aren't growing with the market.

Lastly - sell stuff you own. Old CD's that you never listen to anymore, DVD's that you 'had to have' and haven't touched since, electronics that you really don't use anymore, or even books.


Finally - I hope that you redeemed your Disney Rewards before you canceled your card! And - if you haven't canceled your card - DON'T - It looks bad on your credit. Which makes no sense to me - and I really think the credit score system is very prejudiced and biased - but if nothing else - hide the card - give it to a trusted loved one that you KNOW will not use it - like a parent, sibling, or trusted best friend. You can get it in a true emergency - but it's not in your wallet - so you can't use it!

As far as the balance transfer - first make sure your new card applies a 0% rate to balance transfers - second - see if you can get 0% on the life of the transferred amount - and lastly - as you pay off the card with a 0% balance tranfer more to that card as you can. Even if you are carving our $20.00 more a month to apply to paying off your card - that $20.00 that you are not paying interest on this month - next month - and all the months until your card is paid down to $0.00!

Pick up pennies on the street, check coin returns on soda machines, and think in dollars and cents every day to watch your budget to eliminate your debt.

 

[Disney-Kim]

just a little tip from my own experience....

I had a 10k limit on my Disney card with a 7k balance...the % was high so transferred it to one of my other cards with a low/no fee/fixed % rate to save money. I had the Disney card for YEARS.

the day my payment posted my limit was lowered...to $500

their reason...because they wanted to basically. I was never late, etc.

so be very careful with Chase...unless you don't care if they do that...they are infamous for this

I sock drawered that card and it never came out again...poor Tinkerbell

 

[It'sWDW4me]

just a little tip from my own experience....

I had a 10k limit on my Disney card with a 7k balance...the % was high so transferred it to one of my other cards with a low/no fee/fixed % rate to save money. I had the Disney card for YEARS.

the day my payment posted my limit was lowered...to $500

their reason...because they wanted to basically. I was never late, etc.

so be very careful with Chase...unless you don't care if they do that...they are infamous for this

I sock drawered that card and it never came out again...poor Tinkerbell

Same. Exact. Thing. happened to me! I let it go for a few months. Used the card for small purchases and paid it off every month. Then when I started planning my upcoming trip, I called Chase and requested a limit increase - telling the person on the phone that I was planning a trip. They didn't give me my original limit of $7k but they did bump me up to a $4k limit. Oh, well, it's better than $500!

 

[indimom]

If you can get a credit limit of $7-8,000 on the new card, I would do it. Yes, there will most likely be a fee for the transfer. Check on this. It most likely won't be anywhere near what you would pay in interest, but make sure.
Unless you are planning to make a major purchase in the near future or already have a poor credit score, I wouldn't worry too much about lowering your credit score by transfering it all and dropping the card.
You're better off putting 100% of your effort into paying this debt down/off without interest than fretting about your credit score. Particularly if you are concerned you might start using the card again. Make sure you lock up/cut up the new card as well so that all you are doing is paying down - not building back up!!!
(Don't take this personally, I'm not assuming you would do this. Just going by my own past lousy credit card experiences to prevent someone else from making the same mistakes. )
If you think you can keep the cards without using them, then do it. I know someone who wanted the cards for emergencies, but knew she couldn't quit impulse buying. She finally put them in a tupperware container of water and froze them in her freezer. If she HAD to HAVE them, she could thaw them out, but couldn't just pull them out for a night on the town or shopping trip. Pretty funny, but it worked for her.

 

[TxRabbit]

So I have a Disney Chase Credit card (well, I really don't have it anymore, cut it up and cancelled it...but I'm just paying on the balance right now---$7010)

Anyhow, I applied for a different card with a 0% interest rate for 18months so I can transfer this balance over. I was approved and the card should be here within the next 2 weeks. The thing is though.....it only has a credit limit of $4200. Do you think I could ask them for a larger limit so I can transfer the whole $7000 on it? Or should I just transfer the $4200 and then pay on 2 separate cards?

I was originally going to get a personal loan from the bank but the interest rates are much higher. So what would you do? I just really need to get this stupid bill paid off.

If you really cancelled the card, you have a balance on a "closed" account. I'm not sure the effect this will have had on your credit and it sounds like you don't care about that. In that case, I would request the credit increase. Make the new creditor aware that you desire to transfer a balance and let them know the exact credit line that you are looking for. Go ahead and max out the card.

You will likely pay a balance transfer fee, usually 3 or 4% ($210.30 or $280.40). Add this to your desired credit line, maybe round up?, and ask for a $7500.00 credit line.

To pay this off in 18 months, the goal right? You will need to make a payment of $405.03 every month. Here's what my I would recommend in a plan of attack:

1. Open a savings account that will be used specifically for payments against this balance. Find something that will not charge you a monthly fee or require a minimum balance. I have ING Direct accounts that I use for these types of purposes.

2. Make the MINIMUM payment against your 0% balance. This should be anywhere between 1% and 3% of the total balance.

3. Deposit the difference between the minimum payment and the necessary $405.03 required to pay it off in 18 months into a savings account. It is not costing you anything to carry the balance during the 0% phase, no need to pay more. Building a savings account will be a great habit. See the balance grow will feel amazing. Earning some interest (what little there is these days) is always a good thing. And in the event that you need some extra cash, you will have this savings account as back up and not end up using a credit card.

4. If you can't make the full $405.03 payment monthly, you will have to find a way to do so for the next 18 months. Second income. Sell your stuff. Lower your bills. Go without for 18 months to make it happen.

5. At 18 months, hopefully, you will be able to pay off the balance. Regardless, pay off what you can. A nice big chunk of a payment. It'll feel awesome to make the payment.

This is the methodology that my mom taught me when using 0% finanacing to try to get debt under control. You have to have disciple. If things happen, the plan helps you to know what you need to do to get back on track. And seriously, being able to make that big payment is just awesome.

 

[Mlissa88]

If you really cancelled the card, you have a balance on a "closed" account. I'm not sure the effect this will have had on your credit and it sounds like you don't care about that. In that case, I would request the credit increase. Make the new creditor aware that you desire to transfer a balance and let them know the exact credit line that you are looking for. Go ahead and max out the card.

You will likely pay a balance transfer fee, usually 3 or 4% ($210.30 or $280.40). Add this to your desired credit line, maybe round up?, and ask for a $7500.00 credit line.

To pay this off in 18 months, the goal right? You will need to make a payment of $405.03 every month. Here's what my I would recommend in a plan of attack:

1. Open a savings account that will be used specifically for payments against this balance. Find something that will not charge you a monthly fee or require a minimum balance. I have ING Direct accounts that I use for these types of purposes.

2. Make the MINIMUM payment against your 0% balance. This should be anywhere between 1% and 3% of the total balance.

3. Deposit the difference between the minimum payment and the necessary $405.03 required to pay it off in 18 months into a savings account. It is not costing you anything to carry the balance during the 0% phase, no need to pay more. Building a savings account will be a great habit. See the balance grow will feel amazing. Earning some interest (what little there is these days) is always a good thing. And in the event that you need some extra cash, you will have this savings account as back up and not end up using a credit card.

4. If you can't make the full $405.03 payment monthly, you will have to find a way to do so for the next 18 months. Second income. Sell your stuff. Lower your bills. Go without for 18 months to make it happen.

5. At 18 months, hopefully, you will be able to pay off the balance. Regardless, pay off what you can. A nice big chunk of a payment. It'll feel awesome to make the payment.

This is the methodology that my mom taught me when using 0% finanacing to try to get debt under control. You have to have disciple. If things happen, the plan helps you to know what you need to do to get back on track. And seriously, being able to make that big payment is just awesome.

TxRabbit - I like the way you (and your Mom) think! Great plan!

 

[a1tinkfans]

So I have a Disney Chase Credit card (well, I really don't have it anymore, cut it up and cancelled it...but I'm just paying on the balance right now---$7010)

Anyhow, I applied for a different card with a 0% interest rate for 18months so I can transfer this balance over. I was approved and the card should be here within the next 2 weeks. The thing is though.....it only has a credit limit of $4200. Do you think I could ask them for a larger limit so I can transfer the whole $7000 on it? Or should I just transfer the $4200 and then pay on 2 separate cards?

I was originally going to get a personal loan from the bank but the interest rates are much higher. So what would you do? I just really need to get this stupid bill paid off.

good advice already here OP, just want to wish you luck to become DEBT FREE.............