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Lindsay Lohan needs credit card help

By Ellen Cannon · Bankrate.com
Tuesday, April 20, 2010
Posted: 1 pm ET

According to radaronline.com, Lindsay Lohan has more than $600,000 in credit card debt at age 23. Let's see, that's more than $26,000 a year in debt for each year of her life.

I think we need to help Lindsay. First, she needs to check her credit report to be sure there are no errors. Maybe someone else is charging thousands on her credit cards?

Next, she needs some advice on how to get out of credit card debt. She can start with Bankrate's calculator that shows how long it will take to pay off the cards if she only pays the minimum. Unfortunately, the calculator won't calculate a debt of more than $100,000. But paying only the minimum -- which on $100K equals $2,000 a month -- it will take her 89 years to pay it down to zero.

She could talk to her credit card issuers about working out a payment plan, but these days card issuers are concerned about their risk -- and she's probably not a good credit risk.

Unlike the rest of us, a celebrity like Lohan might make a hit movie or have a hit record and earn enough money to wipe out her debt. You and I have to pay our debts every month ... keeping our debt-to-income ratio in mind.

Have you gotten out of credit card debt? Want to share your secrets with Lindsay?

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1 Comment
S. Lieberman
April 20, 2010 at 4:27 pm

I was in credit card debt and got myself out. Took me 4 yrs to get out of the credit card debt I was in. I used debt consolidation to do so. If this type of program is followed and kept up with you will be able to get out of credit card debt.