How do get my credit card debt to zero?

Ramesh asked:


I had left USA around 4 years back as I could not get a job(software). When I left I had credit card debt. Now i want to be back and normalize my debt. I currently dont have a job. I checked my credit report on the internet but confused with the terms. Its certain that collection agency must be trying to locate me. I cant figure out my current debt, thats when I left and now(including interest?). I need help in how to take the first step and how its going to affect my job-hunt.

Martha

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8 Responses to “How do get my credit card debt to zero?”

1. jwdaye Says:
   May 10th, 2009 at 6:34 pm

   Lisa

   Contact a credit counseling agency. Contact the credit card companies. And start paying a small amount to the company. Even if its only $10. It shows good faith.

2. J G Says:
   May 12th, 2009 at 10:40 am

   Clyde

   If you get a copy of your credit report, it will show you how much you owe on your card(s). Depending on how long ago you defaulted, it may be better to *not* pay it off and just wait out the debt. Most debt will clear 7 years after the last reporting. I would recommend going to a site like, it should also help you with the terms.

3. Samlet Says:
   May 15th, 2009 at 7:36 am

   Richard

   You are right to want to take the first step. It is always better to call your creditors (the people you owe money to) than to wait for them to find you.

   Since a collection agency is already involved, you need to contact them and work out a payment schedule. Here in Canada, they are prohibited from harassing you (no more than one call a week, no threats, no verbal abuse etc.). I imagine it’s similar in the States. If you owe a lot of money you might consider a consolidation loan, where all your debts are paid off for you and you then repay the debt at a lower interest rate.

   Your credit rating does not bounce back to good all at once, even after you have paid off the debts. It will be some time before you will be able to get credit again. And this may affect your job search - some companies do a credit check on prospective employees, as well as a criminal record search. My main advice is waste no time in dealing with your debt. The longer you wait, the more you will owe and the worse your rating will be. Good luck - I made it back to good credit but it took about six years.

4. JC Says:
   May 15th, 2009 at 2:31 pm

   Mark

   This may sound strange, but a cheap way to get started is to simply go apply for a credit card. You will most likely get turned down.

   Then, when you get your refusal letter they will list the credit bureau’s they referenced (usually 3 of them), and you will have 30 days to inquire about the decision to refuse you credit. You need to request a free credit report from them when you do this.

   In the process, they should send you information regarding your credit history, and from that you can begin again to work on all your past bills.

   Don’t be in no hurry, it’s going to take some time.

5. mackiforyouwedo Says:
   May 17th, 2009 at 1:34 am

   Manuel

   cut up the cards you da.

6. echo Says:
   May 18th, 2009 at 5:55 pm

   Bradley

   You should check the statute of limitations for your state. And, if you are living in a different state than the one you lived in when you incurred the debt, you should check that state also.

   If you leave the country while owing a debt, in some states, the time limit for legally collecting the debt will continue to run. In other states, the time limit will stop until you return to the states (basically extending the time limit on legally collecting the debt).

   I would just suggest that you go to the site that I’ve listed and do some reading.

   Also, there are plenty of people on that site that can help you understand the details about your credit report. And help guide you in the steps to cleaning up your credit.

   It is a “free” do it yourself credit repair site with a very big data base of information and with many people that have been or are in similar situations.

7. James H Says:
   May 20th, 2009 at 7:54 am

   Cody

   There is some good info here.

8. Gem Says:
   May 21st, 2009 at 8:01 pm

   Zachary

   Here is an article which would help you:

   How to Manage Your Credit Card Debt?