i am a young professional that currently has 4000 dollars worth of
credit card debt on a 9000 dollar limit card. I was forced to charge
this much due to an unexpected unemployment over the summer. I have
already paid off 1000 dollars to achieve the 4000 dollar balance. I no
longer use this card. The current introductory 0% interest rate is
about to jump to 20.99% in Feb. I no longer use this card and I am
committed to paying it off. But I am nervous that the new interest
rate will make it incredibly difficult to pay off. I have a great new
job, but it only pays around 34-36k a year. So I am somewhat in a
bind. I also have one other credit card with around 600 dollars of
debt with a 1200 dollar limit.

I am looking for sound and precise advice on how to efficiently manage
this debt. I am thoroughly committed to paying these debts off and
becoming debt free and I would like a proactive course of action that
will maximize my money while not making it impossible to live. Thank
you very much in advance.

Jkidd-ga

If at all possible, first try to borrow $4000 from any other source
that does not charge you 20.99%. . .depending on your credit rating
this may be easy or very difficult.  Once you have the money in a loan
with reasonable interest, you will be able to pay it back without
worrying about the interest overwhelming you.

If you own equity in any property, you can borrow against that.  It
might even be preferable to borrow against the value of your car -
anything to lessen the impact of the interest.  Since $4000 is not a
crippling sum, you might even be able to get a friend or relative to
loan you the money, if you are a trustworthy and truly proactive
individual.

hi, kidd - congratulations on joining the ranks of the employed,
again, and on being very committed to managing your debt responsibly. 
the higher interest rate WILL make it costlier to pay off the existing
$4000 debt, but it works against you in the worst possible way if you
only make the "minimum payment" each month.  it sounds like you're
committed to doing all you can to pay it off and fast.  the earlier
comment about borrowing the money from a bank or credit union [maybe
even parents?] that will have to be repaid at a MUCH LOWER interest
rate is first-class, and probably the first approach you should
consider.  however, in the event that's not possible or feasible for
you, here's some suggestions that worked for me when i got into a
similar crunch some years ago:    during your period of unemployment
over the summer, you presumably learned to "DO WITHOUT" a lot of
things that you might have ordinarily considered to be "must-have"'s
while you were employed and earning money regularly.  i'd suggest that
you continue now to live & spend like you did while you were
unemployed - and to put EVERY SINGLE PENNY that is not absolutely
necessary for rent/mortgage, food, car and medical/health insurance,
into paying off that debt - send them $200 every week if you have to. 
$34-36K is not Bill Gates territory, of course, but neither is it
wretched impoverishment.  Don't go to out to movies - swap tapes/DVD's
with friends and watch them at home with microwave popcorn; rent
books/tapes from your local library; dine at HOME and not at
restaurants; brown-bag your lunch to work; pack picnics for weekend
outings to a local park or zoo; watch your long-distance home & cell
phone charges [or, better yet, switch to another carrier with a more
economical plan]; put off any unnecessary major purchases - this
includes clothing, cameras, etc., and look for bargains for anything
you absolutely MUST buy [also consider buying pre-owned!].  after
you're economically back on your feet, and yr credit card debt is paid
off, (a) don't fall into the trap of "easy credit" again, and (b) PAY
YOURSELF FIRST - meaning that you establish and maintain a rigid
dedicated program of SAVINGS.  have it taken out of your paycheck if
at all possible, before you ever get it, in an automated
investment/savings account; invest in the company's 401(k) as soon as
you are eligible, and contribute the maximum pre-tax earnings you can
afford.

here's some sites you can log onto to find out more about saving:

a general SAVING site, including articles like "Frighteningly Frugal
Fun" and "Excuses or Choices":
http://www.findsavings.com/articles_archive.asp


list of some books you could look for at the library [and buy later,
when yr debt is paid off!]:
http://www.simplejoe.com/books-saving-money.htm


where to find discounts & other money-saving tips for shopping on the web:
http://www.primers.net/savemoney/

articles from USA Today's website on saving money:
http://www.usatoday.com/money/wealth/msav.htm

and, of course, there's always FROOGLE, google's shopping site!!

good luck, and again congratulations on making some smart credit decisions.

Something you might try: call up the credit card company and see if
they'll reduce the interest rate for you. It doesn't always work; it
may be dependent on their own policies and your credit history. That
said, I've had success with this strategy and the worst that can
happen is they say no.

Another thought would be to contact your other credit card company.
Ask them if they will increase your limit, and transfer the balance to
that card.

Good luck.

Regards,
luciaphile-ga

Have you thought about applying for a new credit card?

Although multiplying credit cards is NOT generally advised as a way of
controlling debt, there ARE cards that may offer you the option of
rolling over your old CC debt to the new card, interest free (for a
while!).  If your credit rating is OK, you may able to find an offer
like this.

Eventually, the new card will start charging exhorbitant interest
rates on any unpaid debt, but at least you can get a respite of a few
months.  It may be worth looking into.

Good luck, and a prosperous new year to you.

Hiya!

Just a quick note: I was in the same situation (a few years ago), I
found that "balance transferring" the balance of the card - obnto a
new card would give you at least 6 months interest free borrowing. If
you can repay 1000 in that 6 months period, you then apply for another
card (proceeded by closure of the previous account) and so forth. 
Eventually in 2 years time, you will be debt free (perfect credit
rating) and of course, you will have built up a good history with all
of the creditors.

Balance transfers work like a payment.  So if you transfered 4k of
your current card (the current credit company would simply receive a
cheque for 4k from your new credit company) - therefore they are in
belief that you have paid off all of your credit (so you get two "XX"
marks on your credit - which is good!)

Good luck in your search for a great rate card for balance transfers.

Best regards,

Best thing you can do is find a company that offers a good low
interest rate. Some offer a fixed low rate i fyou pay an annual fee.
With the kind of balance you have, it's worth it. You don't say where
you are, but I know of 1 for sure. bank of montreal's mosaik
mastercard has a low-interest option, for CDN$35 per year, the
permanent interest rate is 7.9% for balance transfers. (12.9% for
purchases) You might find something similar. If you do, even before
you apply for it, go to your current card company and negotiate with
them. You'll need to bump your way up through several levels of
supervisor, but eventually you'll reach someone who has the authority
to change your interest rate in order to keep your business. Be polite
but foreceful.