My sister and her hubby are about $20,000 in credit card debt. They're both making about $30,000/yr in Denver. She's got a pretty good credit rating (no derogs and a couple of MBNA cards from 1991), but is about 80% debt to credit line ratio. Her hubby's cards are charged pretty close to the limit. She asked me what I thought about BK and other ways that she could deal with her debt. I advised her to BT from 0% offer to 0% offer as they become available. She figures she can pay off her debt in 3-4 years this way and won't have to deal with BK. She's gotten 0% transfer offers from Cap One and Providian in the last month, anf I told her to go with them until they increase the limit, paying the same amount would on the 17.9 rates she has with her MBNA cards. After they increase the amount, close the account and BT to an account offering 0% BT interest until it's payed off. The inquiries probably won't hurt her too much because of her long history. she should close each account as she BT's from them and she sould keep her old MBNA accounts open. Am I being a good sister? Ellen
Why close any accounts? That only hurts her ratio. If she BT's off a card, keep it open to BT it back later on as the CCC's always offer some type of teaser rate on BT's. It's always good to have some place to transfer to when a promo rate goes up. Other than that, it's the best advice you can give.
Ellen, There is a gentleman by the name of Ira on the discussion board at www.creditcardfreedom.com who paid off $40,000 in credit card debt by using balance transfer options. I believe he had a total of 40 some tradelines before it was over. I would try contacting him. I think he would be a great help to your sister. Dani
One other point you need to make. None of this will help if they don't stop charging. The hole will just get deeper.
