Helping a Friend get out of Credit Card Debt (Part 2)
Warning: I am not a financial planner/adviser/consultant, so please proceed at your own risk.
Please read part 1 before reading this post. The first thing you need to do is assess the current situation without judging or asking “what did you buy at XYZ for $430??” There are a few key pieces of financial information that you will need to find out. Such as:
- Current balance plus all pending charges
- Current interest rate
- Total credit limit
After determining those figures for all of your friend’s credit cards, you can see the big picture.
|Card Name||Date Opened||Balance||Credit Line||Interest Rate|
|Store-branded credit card||Jan 2011||$2,800.00||$3,000.00||20%|
|Capital One credit card||May 2012||$650.00||$1,500.00||18%|
|Chase Freedom credit card||Nov 2013||$2,800.00||$3,000.00||0%|
|Bank Americard credit card||Nov 2013||$2,200.00||$5,000.00||0%|
The last 2 cards have 0% interest through December 2014, so he/she has more than 10 months of no interest on those balances. Continue reading