I am currently in 38k of credit card debt. This was due to buying tools for my profession(company wouldn't pay). I have had these credit cards debts for 2 years now and its turning rediculous with the high 28% interest on the cards. I have 4 credit cards totaling 38k all together, but the big problem is they are in my father's name I have been trying to pay them off by making double payments, but the cost of living in Socal is expensive. If these were in my name I would of immediately filed for chapter 7, but i can't do that due to the cards being in my father's name. My father helped me by getting a few credit cards so I could buy my tools faster, because my credit was all screwed up when I was in school. So now that i have a good job, I am stuck with this debt that i could barely make payments on. Anyone have any advice on how I could solve this problem without ruining my fathers credit?
Do you itemize your taxes and if you do did you deduct them if the company requires them.What you might have to do is pay the required on 3 and the rest on one.it's going to be tough remember this took time to get where your at.So it will take time to get it right.Theres no quick fix.Does dad know?
Yes, he knows. I feel so bad, I have awsome parents, I am a hard worker just like my parents, I guess i screwed myself. I always make the payments and I'm never late. I was going to buy a house, and my parents even offered to refi thier house so they could help me out of my bind. I would be paying them off of course, but it sure wouldn't be no 28% BS monthly interest. Only thing I am afraid of is if he will have a problem refinancing his house because of these 4 credit cards. They also own about 2 million in rental properties as well. What do you think?
As long as you pay him back that would help you out just have a contract made out it looks more official.He could borrow on his rentals.Make sure you pay it back there's not a lot of people that awesome.
He could probably get a refi, or at least a home equity loan that you could pay. Have you tried to negotiate with the credit card companies for a lower rate? Tell them that you really don't want to file BK but you really need some help for a year or two. If even one or two of them lowers the rate, pay just above minimum on those and pay as much as you can on the higher interest card to get it down. In fact, you should be doing that anyway. Keep a spreadsheet of the debts, update every month. Sort by interest rate. Any below the highest only get minimum payments. The highest interest gets every spare dollar you can scrounge. When it's paid off, add the amount you've been paying on it to the minimum on the next highest. Pay that amount every month and minimum on the others. As one is paid, add what you've been paying on it to the next one, and keep it up. The reason you look at this every month is that the rates may change. Whichever card has the highest rate each month is the one that gets everything except minimums. Once you get one card paid, you'll be surprised how fast the rest goes down.
How is your credit now? If it's acceptable you could start opening cards in your name, ones with the 0% balance tranfers and transfer from his cards to yours. It wouldn't be all at once, but in due time you would be building great credit for you and paying off your dads cards.
This may not be a good idea, depending upon how long the 0% rate is for. If you could get if for a year or more, it might help. Two things you need to watch for on balance transfers. First of all, what is the fee? Many cards now charge 3-5% of the balance. Second, what is the rate when the introductory period runs out? If the fee isn't exorbitant and the rate when the intro period runs out is lower than you're paying now, then this is a good deal. Transfer the balance from the highest-rate card you have. Pay the minimums on the 0% and pay as much as you can on the higher-rate cards that are left. The minimum on the 0% will probably be lower than your current minimum on what you transferred, so you can pay more on the higher ones now.
