jeff the drunk
 |
Depends on how much debt you have. Eitherway, the first thing you gotta do is get it through your head that if you cant pay for it with cash, you cant afford it. If you have so much debt, not counting a car payment, or rent or mortgage. But I'm talking stupid credit cards, etc... That it is 50% of your net annual income, you might as well file for BK. If you're only talking about a few thousand bucks in debt, heres what you do. One, pay each card off one at a time, getting the balance down to 0, then do the next card, and the next, etc.... Do the ones with the smaller balances first and move to the next higher one. Make double, triple or more for the payment of each one and pay the minimum on the rest. Those minimum payments are what kill you, since whatever you APR, 18%, 20%, etc... of your monthly payment, goes to straight interest. Thats what kills you. So, pay off your smaller balances first, and move on to the higher balances. Plan on it taking up to a year or even more. Keep one card available with revolving credit as an emergency, GETTING YOUR NAILS OR HAIR DONE is NOT and EMERGENCY. My wife and I have 5 or 6 credit cards. One is a revolving one, where we get points for a cruise. And we only buy things on that, that we can pay off by the end of the month, or at the absolute most, what can be paid off in 2 months at the most. The other cards, are all paid down to about 10% of their balance or paid off entirely.
I think the biggest problem that people have with managing their credit is buying STUFF, I say its in buying junk. The real key to it, is to really pay cash for everything, and dont use your cards at all, especially if you have troubles in being in control.
But the key to it is you have to be in the proper mindset. We can all tell you to pay them off, etc... But if you are not in the right mindset of REALLY doing it, you wont. |
yeti042
 |
stop using your credit cards RIGHT NOW!!
Pay the minimum on all, but take the lowest one and pay as much as you can afford.
When that's paid off, take the money you'd be paying from that one and start on the next lowest and pay what you were paying on the first plus the minimun for the new one.
Work your way up to the highest.
For a more detailed explanation and worksheets and everything else you need, check out this book:
"The Total Money Make-over" by Dave Ramsey
Be careful when considering Bankruptcy -- it is a LIFE ALTERING decision that stays with you FOREVER. |
proudpreemieparents
|
If you have credit cards, cut them up! Granted, most of us live paycheck to paycheck and use the credit cards to "get by". I'm living proof of that and I am in debt up to my eyeballs.
Don't buy what you don't need, even if it's on sale! Cut coupons, buy store brand, eliminate how much you eat out or if you do get bigger portions so you can eat the leftovers for a few days, keep track of how much you buy. I did this and was amazed at how much I spent on my daughter and how much my husband and I spend on eating out. Now, I mostly cook with a slow cooker as you can't mess that up and you have enough food for a few days. Good Luck! |
NoNameGenericGuy
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If you own your home, you might consider refinancing and using the equity in your home to pay off debts and consolidate them into your mortgage payment. If you find a good broker, they can find a better program out there than what you currently have and possibly save you money on your monthly expenses while still paying off your creditors. Your interest rate on the mortgage is a lot lower than the rates on your cards. In the meantime, put the cards away. Do not charge anything else unless it is an emergency. Allocate a payment larger than your minimum monthly payments on your cards if you can and pay them off as fast as possible. Also, create a budget and stick to it to eliminate useless spending or impulse buying when shopping. |
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