I'm looking for a credit card for someone with poor to fair credit at best that they can transfer a couple of credit cards with high interest rates/balances. I've googled lots of cards but I'm having a hard time recommending the best one. My friend has one card with a $7000 balance and one with a $9000 balance. According to her both interest rates are between 16 and 24%. OUCH! Just trying to lend her a helping hand without her having to apply for multiple cards. Should I just recommend consolidation?
You will not be able to get a large credit limit card for her with low rates, at least not likely (if her credit is bad). Is she paying the cards now? 16000 at 16% -24% is like at 24% her amount would doubble in three years, at 16% it would double in less than 5 years.
She really needs to put in a huge effort to get out of these debt ASAP, if she doesn't she will be bankrupt in a few years. Stop going out, cut all unnecessary expenses like cable, high speed internet, cell phone.
If she does own a house she can of course put in a home equity loan, but she might also lose her home if she default on that. The good point about home equity loan is the rate is usually much better than credit card rates.
She told me today that she had a SIMPLE IRA from a previous job worth $6,500 that she cashed in so that she could pay on the balances. Pretty sad.
ahh, spending more than one earns..a uniquely American tradition! check out: http://cardratings.com/ and then rent Maxed Out...a great documentary about the debt in this nation.
i second the dave ramsey suggestion. give her the total money makeover book. also you can find some balance transfer offers for 0% 12 months, or even 2.9% fixed for life - you gotta search for them though. motleyfool has good resources for finding a good credit card.
