My statement “if you can afford a CCC, then you don’t need one” is very simple actually.
Right now you are snowballing your CC. This is one method and it protects and IMPROVES your credit as you go along.
Dave Ramsey and John Cummuta have excellent programs when it comes to snowballing debt (or as sometimes called: roll-up).
The problem with the Dave Ramsey and John Cummuta programs is they do not tackle the enemy of the debt.
I wrote about this before, but your Daily Calculated Interest is what you have to battle.
The amount of interest that you are paying every month is astronomical. This is why people never get out of debt, and then fall into submission and go into agreement with the saying “you have to have credit (debt) to do anything, blah, blah,blah…”
By dramatically lessening the balance in your debts (mainly credit cards) you will free up more of your cash which can then be put towards paying off your debts faster.
Dave Ramsey and John Cummuta’s programs eventually get around to that…but not soon enough for a lot of people.
It might like I am cynical of those two…I am not. I like their programs. I even recommend them.
CCCs are just not a good solution. They do hurt your credit despite what they say, and they DO NOT have the intention of getting you out of debt. They want you to manage it.
So when the minimum payments go up think of what I said here. Look to better alternatives other than CCCs.
Debt settlement is good only if you have a valid hardship and cannot pay your bills monthly, so don’t look to that option either…unless you really have to.
Does this answer your question? If not, let me know.