How can you get out of credit card debt when they wont let you? Long story short...NEVER missed a cc payment, had a credit score of 740, had a credit history of 30 years plus.Own my home (paid for)..Had 5 cards and all of a sudden my interest was raised to 22% -28% each  card followed suit.Minimum payments on all 5 was 480.00 and 300.00 was going to interest. Bank of America was the first and the worst.,Min payment was 50.00 they took 43.00 for interest. I struggled for 2 years paying this then husband had a heart attack with a quad by pass and lost his business.They didnt care. YES I called over and over,I eventually went to court and won 2  cases where I didnt pay a dime and settled  the other 3 for pennies on the dollor.So they didnt get there money and my credit is RUINED!!!!!!  I cant get  a loan and the bank doesnt even ask why they just go by the credit report ,that is so wrong to do.

     Tiffany, this was helpful!

My husband lost his job in September of 2008 and after a year of desperately searching for work found a job in October of 2009.  He was a 1099 employee and did not have any income for over a year and did not qualify for unemployment.  Needless to say, it was a very tough year. We had around $14,000 in cc debt and a 1,500/mo mortgage payment.   We did exactly what Tiffany suggests above and believe me it works!  We made it successfully through the toughest time of our lives.  I have a 401K which I "borrowed" from...the key here being "borrowed"...at a 4% interest rate and paid off all of the cc debt.  That freed up nearly 350.00 a month just in interest.  We were able to pay off the debt and have more money in our pocket.  I will have the 401K paid back in 6 more months and it is a much more manageable payment ($100.00 a month as opposed to paying the cc companies over 500.00 a month.)  We just had to sit down, look over it all and come up with a plan and that is what we did!  Tough times call for extreme measures.  I'm sure all the praying we did had a lot to do with our success as well!

Karla:

I can't recall exactly what it was, but there was an act passed not too long ago allowing you to settle your credit card debt at the original interest rate prior to the hike. Only problem there is that you had to let the CC company know that is what you want to do prior to the rate hike. After that, your account was closed, but it could easily save you 10% or more depending on how much the interest went up.

As a recent college graduate, I understand how burdensome credit card debt can be--especially on a monthly income of less than $2,000. However, being free of my credit card obligations is definitely something that is a big relief and gives me that sense of accomplishment.

Hopefully more people who are in trouble with debt will read this article and take the advice to heart. Great post, Tiffany!

There was a time when one really needed a credit card.  You had to have one to make hotel reservations, rent a car, order anything over the phone, or get airline tickets.  Those days are long gone when Debit cards became so popular.  Therefore, no one really needs a credit card anymore.  If we would all take that knowledge and stop using credit cards we would essentially be debt free.  Credit card debt is the worst kind of debt to have.  Therefore, don't use your credit cards.  I am not saying close your accounts, though, because that can actually hurt your credit.  Put your credit cards in a bowl of water and put them in the freezer.  That way, if you really HAVE to use one of them (in an emergency) you have to thaw them out first and that will give you time to think about it and make sure that what you are doing is absolutely necessary.

Gabrielle

     Tiffany you are so right! I just read "Total Money Makeover", by Dave Ramsey, who is a christian speaker. This is almost exactly what he recommends to people. The only difference is he tells you the first thing to do, as fast as you can, put back $1000 for true emergencies. Then, begin paying off debt from least amount owed to most. As you begin, only pay the minimum payment to all other debts while sinking your money into the smallest bill owed. When you pay that one off then you take on the next by paying all you were paying each month on the first one plus that minimum you were paying toward the second bill and so on. This is considered a snowball effect. Soon you'll be debt free! Eventually, you'll even be able to pay off your home. Most all you'll be able to give to your church and organizations that are important to you.  I highly recommend the book. It can be purchased on his website for only $10. Much higher in stores.

I think it is horrible that you can't go to the bank and get a loan now adays. It seems like many banks are saying (like Arvest) that they are loaning money, or have loaned a big amount of money, but yet I can't get a $3000 loan for school expenses when my credit is good and I have been a good custormer. Now that is bogus...I agree though with everything else that has been said about getting out of debt ...

All I can say is, Dave Ramsey rocks.  Get on a budget and get out of debt!!!  Go to www.daveramsey.com/fpu/home/ to learn more...