farran abat
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Credit card debt elimination can be done with a good plan and a little patience. The important thing is to find what works best for you and stick to your plan. The rewards are well worth it and you'll save yourself a lot of money in the process.
You can choose to either start paying off the credit card with the highest interest rate first or you can get rid of the credit cards with the smallest balance first. The important thing is to know exactly how you are going to approach your credit card debt elimination before you begin.
First, set a realistic budget for yourself to lower your spending in all areas and stick to it. Living by your budget will help you pool your available cash for your credit card debt elimination plan.
The most important you must do immediately is eliminate your credit card spending. You can never succeed with credit card debt elimination if you continue to add to the outstanding balance. The interest on that debt added with a climbing balance will make credit card debt elimination impossible.
It's important to pay your credit card bills on time and always pay more than the minimum payment on the bills you want paid off first. Paying the minimum payment doesn't eliminate that high credit card interest rate. That's exactly what the credit card companies want because they are making a killing off of that interest. Get all information about credit card debt consolidation at: http://www.credit-card-gallery.com/article/69,Credit_Card_Debt_Elimination |
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zyberianwarrior
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this is a no briner pay off your debt first and foremost |
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jeff410
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I agree, no brainer, pay off debt. |
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StockJock
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Like everything in personal finance...it depends on your situation. If you have a low interest rate or teaser rate on your credit card and generallly don't carry a large balance, you may be able to generate better returns by investing it. But, if your interest rate is more than 8-10%, you are generally better off paying down your debt.
If you have more than one credit card or loan, and if your tax refund is enough, you should try to wipe out one card completely (even if it is not your highest interest rate card) and then apply that payment to your next lowest balance card until that one is paid off too. Good luck! |
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Bubbles
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Absolutely pay off the credit card debt. You're losing much more from the interest payment than you be gaining from the IRA. |
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SWH
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Pay off your credit card 1st. Then an IRA. It's tough to get 18-20% return these days.
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Brenton L
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no question. Pay off your debt. Once you do, close a portion of your available credit, so you can not just go into to debt again.
Many people who pay off their debt are donig the right thing by doing so. The problem is that they do not change their habits and once their debt is paid off, they start adding to it again. It is just like I diet. In order to not be fat, you need to change your lifestyle. Most people who go on a diet go rigtht back into their habits soon after. |
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muncie birder
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On the surface I have to agree with the other responders. Pay off the credit card debt then tear them up. But actually the proper answer might be more complicated than that. If you pay off the credit card debt and then turn around and rack up more debt on the credit cards, you have nothing to show for your troubles. Unfortunately, many people fall into that trap. Can't help spending the money they do not have.
Now if you put the money into a Roth IRA account, that money is going to be somewhat difficult to get to in the future and is more assuredly safe from being spent. In other words it is an investment in your future. The downside is that you will still have that miserably credit card debt racking up interest at a rate that is much higher than you can expect to receive on any investment you might make in your IRA account. |
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Austrias
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Pay off you debt first you'll yield a very high return automatically 20-26%. And still open a Roth IRA as soon as possible with a small amount. With that interest that you have saved start investing in a Roth IRA. |
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harish
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Small steps like paying your bills on time and using only part of the credit available to you. Also use your credit cards for making small payments regularly, so that it is reflected in your credit record. More tips available at http://www.acreditlibrary.com/buildcredit.html |
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R&R
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There are alot of varying factors, ie how much debt do you have and at what interest rate is being charged on that debt. Would the return on a ROTH IRA be greater than the amount of interest you pay on your credit card debt. |
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Yves P
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First, I suggest you pay off the credit card debt.
Then I suggest that you be very careful whose advice you take and do your own due diligence before joining any business ventures or investments programs.
Having said that, Do you understand the power of compounded returns?
I know of an Opportunity that is totally Unique and I virtually guarantee NO CHANCE of losing your money!
This One is for REAL! And with No obligation on your part.
Send email to: pellyves@nbnet.nb.ca
with "FOR REAL". in Subject box |
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greg
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Hi,
I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate.I came accross this company on NBC News Special Edition.Check it out here:
http://www.jdoqocy.com/click-1813149-10467845 |
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