I carry pretty high credit card debt at high interest rates. I always make payments on time, and I am not delinquent. My credit score is around 600 (mostly because I'm up against my limits), do you guys know if Credit Unions work with people to get these Credit card debts consolidated? Do any of you know anyone else or another company that can do this without hindering my credit?

I'd appreciate any help. Thanks in advance.

I hate credit card debt. It's such a trap. Yet, we all need to use it at one time or another. The key is to not get too far in debt, which is not always easy. I am happy to say I have no CC debt and haven't for about 4 years.

I know my credit union (through the school district) does give loans, but I have never taken a loan thru them. I know people who have though, but I don't know if there is a limit. It is nice because they take the payment directly out of your check every month. It would be worth checking out, since, at least here, they have a little lower interest rate.

TIS

A credit union is kind of like a "private bank", where people that work for the same company, for example, make deposits and then are able to borrow against these deposits.

I think you're mixing credit unions up with credit counseling services.

They can be useful if you are in way over your head, because they will (for a fee) negotiate with the credit card companies and try to work out a payment plan for you that you are able to handle.

But since you say that you are able to make your minimum payments on time, I wouldn't advise that you go that route, because your use of a credit counseling service will be noted on your credit history, and definitely be considered a negative.

What you can and should do is call the CC companies yourself and, since you make your payments on time, ask that your interest rate be reduced or "membership fees" be eliminated. It never hurts to ask, and sometimes they will accomodate you, especially if you threaten to close your account.

If you do close any accounts, BTW, make sure that you tell the CC company that you want it noted on your credit record that the account was closed at your request, not that the CC company decided themselves to close your account.

Also, try to make more than the minimum payment each month. Even if it's only $5 or $10 more, that will decrease the principal amount that you owe and decrease your minimum monthly payment that much more quickly.

Finally, keep your eyes open for offers for new cards that you may receive that offer balance transfers at a very low interest rate for a limited amount of time.

How you handle debt can make a huge impact. First of all, you should definitely try and eliminate as much of your credit card debt as you can. As PL said, even if you make your payments a tad higher than the minimum, it's worth it. Also, do keep your eye out for cards that will offer you 0% interest on transfers. But be careful - those are introductory rates and can end up screwing you later on down the road. Remember that you're paying around 20% on that debt. However, a consolidation loan is tough to get, unless you own a home and can do a home equity loan. The most important thing to do is to get beyond the minimum payment, otherwise you'll never pay them off.

Like TIS, I've avoided credit card debt like the plague. Even if I did end up with a balance, I stopped all purchasing until I paid it off. I also went through a period where I locked up all cards except one that I used for emergencies only, and disciplined myself to pay cash for everything. You think you can't do it, but you'd be amazed that you can. Also, try a weekly budget. It's worked for me for years. I take X dollars out of the bank each Saturday, so much for food, entertainment, pocket money, etc. Then, if we run out before the next Saturday, tough noogies. We are NOT allowed to hit up the ATM.

Also, I read recently that you can save a tremendous amount by eliminating what the credit counselor called the "latte factor". By eliminating the purchase of so-called luxuries, like visits to Starbucks (which many people do on a daily basis) or brown-bagging it twice a week instead of buying your lunch every day, you can save a good amount of money, at least a few hundred a month. That money can then be applied to your credit card debt to help pay it down. Also, if you consistently go over on your cell phone minutes, call your company to see if they have a better plan, or discipline yourself to call your friends only during those free nights and weekends. I was amazed at how much money you can save by doing little things, and then applying the money you would have otherwise spent towards your debt.

Sorry for the long post. Hope it helps!

Part - that is a great idea, getting a 0% interest loan. It takes discipline and careful management, but that's terrific!

I had a friend who used to get those checks in the mail, saying he could take a cash advance for up to 9 months at 0%. He would take the money, stick it in a 7 month CD, then pay it back and keep the interest. What the companies are banking on is that you won't pay it back on time.