I right away have about ,000 value of credit label debt..not the outrageous amount, though the weight upon the brain nonetheless. we have about ,100 the month (yes..I’m in college) as well as was wondering what the quick approach to get my cards paid down would be.
Do debt converging loans harm your credit? Right right away they do not receptive to advice similar to the great idea.
Anybody have any strategies they make use of to get their cards paid down?
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They might or they might not have you on. It depends on many factors and how big the debt is.
Stop buying on credit (cut up the cards, if necessary).
Pay off the ones that have the highest interest rates, first.
I know of no other way . . .
Some –if not all– debt consolidators charge for their services,
so whether you pay them up front or later, you wind up spending more by using them to lower your monthly payments, not to mention having to pay more in interest, as well (for borrowing the money longer).
"How Can I Control My Spending?"
– Learn the Basics
– Recognize the Challenges
– Learn From the Answer *No*
– Money Is Time
– Taking Control
– Making a Budget
http://watchtower.org/e/200606a/article_01.htm
"Should I Have a Credit Card?"
– Counting the Cost
– Responsible Use of a Credit Card
– Enjoying the Benefits
http://watchtower.org/e/19991222/article_01.htm
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Strategies??? Why do you need a strategy? Paying down credit card debt it really simple. You stop using the credit card completely and throw lots of money at it. Live on less than you make.
What keeps most people in debt is the fact that they keep spending more money than they make. They look at the "monthly payments" instead of the total debt loan that they are carrying. People need to stop spending now and concentrate on becoming debt free. Please do not consolidate or use a debt reduction company . It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. Student loans are the only debt that can garnish your wages for non payment without taking you to court first. Just list them out on a piece of paper or a spreadsheet and follow the plan. If you work the plan, the plan will work for you.
A. Have a garage sale and sell anything that you no longer need or want.
B.Get a temporary part time job, if you have one, get another.
Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don’t even have to worry about it. You must cut your spending and live on less than you make.
2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.
3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:
To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment
Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment
Debt #1: paid off
Debt #2: paid off
Debt #3:Minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.
That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.
4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.
5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.
5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.
5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.
You can do it and it isn’t as hard as you think. Just follow the plan
The "strategy" is simple:
(1) stop charging
(2) make bigger payments
debt consolidation services usually charge and depending on how they negotiate can do serious damage to your credit. If you qualify for a debt consolidation loan from a bank or credit union then that may be a good idea. These are hard to come by right now though. If you have something to use as collateral it may be easier and get you a lower rate.
Either way, stop using the cards and pay as much as you can towards them. 4K isn’t a lot of debt in the grand scheme of things but adds up at 25% interest and an $1100 income.
i can’t stress this enough. the best way 2 deal w/ debt is 1′st 2 care 4 their own needs. by law, all govt income’s untouchable, & unsecured debts r low priority. secured debts require a higher priority, & judgments require the highest if they r about secured debt. if u get behind on pmts however, no 1 can take personal property. never answer the door 2 bailiffs if they appear.
Dave Ramsey, Dave Ramsey.com Total Money Makeover…
He has the right answer.
Debt consolidation can be a good solution if you have a hard time to discipline yourself and make multiple payments in a month.
I would suggest you to just pay the debts directly if you can continue to send the payment over. That will save a lot of cost.
dave ramsey
I’d recommend doing a bit more research than what is just covered already here, check out http://www.recessionexception.com
Forget debt consolidation, debt settlement, and most of those debt something or other companies you see advertised. Many are scams and with only $4K of credit card debt, you need to learn NOW how to dig yourself out of that debt. Otherwise, in 10 years you’ll be asking how to get out from under that $40K of credit card debt.
First, sit down and make a strict budget. Get rid of all extras. If you only make $1K a month, you can’t afford eating out, new clothes, cell phone, alcohol, etc. Take every penny you can squeeze from that budget and throw it at the highest interest rate credit card, while making minimum payments on the rest. When the highest rate card is paid off, move to the next till they are all paid off.
Look for ways to bring in extra cash. Have a garage sale, collect alum cans, get a second job … Throw it all at the debt.
When you do get the credit cards paid off, only charge what you can afford to pay in full every month. That way you’ll build good credit, save the interest, and stay out of debt.
Best way to pay off credit cards is to use a big wad of cash. People’s opinion might and WILL differ of course.