ekibitz
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You will feel free as soon as you get out of debt. The sooner, the better, whatever it takes.
Here's a tool that will help you set up a monthly payment schedule and you can see what a difference it makes to concentrate on one debt, then roll all that money into the next and so on...
http://debt.bizcalcs.com/Calculator.asp?Calc=Debt-Elimination
Good luck to you! |
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BSE B
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Your best options are:
1 - Cut your expenses down and pay off the debt faster.
2 - Get a part-time job and turn they entire paycheck over to the debt, in addition to your regular payments. This will knock it out fast. |
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Steve B
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Interest rates are expected to go up again this year.
Pay off the loan ASAP = and NEVER EVER spend money you DON'T HAVE again (except to buy an house)
Only people who choose to be POOR get into debt by spending more they they earn ...
People who choose to be RICH spend less than they earn -
Pretty soon POOR people have to stop spending because all their earnings go on paying interest on their debts -
.. and RICH people stop earning because all their spending comes from their investments .. |
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katehughes2706
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Pay more, because it will actually work out you would pay less because you wouldnt have 5 years extra interest on top of your debt. |
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black_dahlia
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cut the fun and pay off your debt in the shortest possible time.
if you are talking about credit cards- and paying only the minimum payment, then you will be paying it forever...because the minimum payment only covers the charged interest and a bit more...so you are not even paying the debt, you are only paying the interest...which you should up the payments if you want to repay the debt...
i hope you are not owing money to a loan shark, then you're pretty much screwed...and forget about the fun.
believe me, you will have plenty more fun when you are debt-free |
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GeneGregoryArt.com
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Are you talking about a debt to one company or several? If you have debt to more than one company, pay off the smallest one as soon as possible, then apply that payment to the next. Pay extra to the principal each month if possible. Be disciplined to stay out of debt. |
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MissV
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Being in debt is no fun. You pay now or pay later. Pay the same amount, however, add a secondary amount towards the principal AND QUIT MAKING MORE DEBT!
There is sunshine at the end of the rainbow. The decisions you made that got you in debt were likely made a long time ago, however, now, you are on a terrific path towards a terrific future! |
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JB
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I would stop creating new debt, then:
1. Get a 1000 dollars in an emergency fund.
2. Get myself on a written budget. Give every dollar a name and a mission
3. List my debts smallest to largest. Pay minimum payments on everything except the smallest. Hit the smallest hard. When that's paid off, I'd use that money plus the minimum from the second debt on the second. And on and on until I was debt free.
4. Get a second job and use that money to knock out the debt.
5. Sell stuff to help knock out the debt.
I don't know what you make, but it shouldn't take five years if you use the method I described. I live the benefits of this plan. |
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ffordcash
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Pay more, get rid of the debt ASAP. |
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Stacey C
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Personally I would up the payments and cut out the fun or alternatively take a bar job/waitressing up a few evenings a week and pay for my social life out of that. |
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raymond l
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you need to write down all the different debts and time before it clears on a table. You then clear the first one and use all the extra money available from clearing old debt to help clear new ones. Jamie McCintyne has a free ebook explaining the ins and outs. It is called "I wish I had learnt this in school". give that a search and download the ebook for free. |
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kupkakeswetie
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cut the fun out of 5 yrs |
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morgan
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Pay extra (don't maker lower payments as you go on the balance will come down quicker) you don't have to cut all the fun out just look for free fun (going for a walk) (museums) (library books DVDs) |
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mldjay
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JB is absolutely right! Do the Ramsey plan. It sounds like you are sick of tired of sending other people your money. Get The Total Money makeover (book) read and start the plan. You will be out of debt in no time. A second job will help get the debt eradicated faster!
Ramsey's plan has helped us focus and cut our debt, we aren't out of debt yet but we are well on our way. |
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teddbrhd
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I think it is fundamental to look at how much of your monthly income is being used to repay the debt. If you over-repay are you going to leave yourself short and then end up borrowing more to fund the fact that you've run out of money by paying off debts. I.e. giving with one hand to take with the other (I know from personal experience!).
I think even as much as it can be frustrating a smaller, more manageable amount over a longer term if much better than over-committing short-term and ultimately compounding your problems.
Also bear in mind when applying for a mortgage the lender will apply a 12x multiple to the monthly repayment and then deduct that from your salary (in most cases for loans) or 5% of the total balances outstanding on credit cards. So if you take a loan over a shorter time then the amount deducted from your salary is greater. If you have credit cards my suggestion is cut them up and wrap them up into a manageable fixed rate loan.
to look at loan rates go to www.moneysupermarket.co.uk
Good luck. |
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Magda L G
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Visit the below website to get a debt consolidation loan. Your payments will be lower, and in the end you'll pay your debt off |
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adam z
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You have prioritise your out-goings as well, do you need SKY....? Mobile phone....? Meals out.....? The more that is spent on wants, and not needs the more time is spent paying off the debt, and the greater debt becomes. |
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andrew b
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There is a government scheme called "IVA" which means individual voluntary arrangement, this is kind of a last resort for people in debts of £10,000 and over to stop you going into personal insovency, you enter a legal agreement to pay a certain percentage of your debts over a 5-7 year period, your interest is frozen and they keep the creditors at bay for you.
Not to sure of the minor details but i'd look at your other options before you commit to anything, nothing is ever as bad as it seems, don't ignore your debts it will only make it worse, speak to the companies and arrange to pay what you can.
Good luck matey!! |
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Zoeksalamander
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I would try to find a higher paying job, otherwise I would go for option 2. |
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Sally
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cut your expenses and get out of debt faster.
Or as I did talk to a professional and they can advice you on the best way forward. I called http://www.idealdebtsolutions.co.uk and would recommend them. |
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vera-ann
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Hi- I would recommend a comprimise between these two ideas.
Try looking for a lower interest rate than you have just now that way you could either A) keep the monthly payments about the same and pay it off sooner or B) or reduce the monthly payments and keep the same term.
If your debt is in the form of credit cards or store cards then the interest rate is probably quite high and you might be better off consolidating with a personal loan or if you have a mortgage you could add it on to that. Try visiting your bank. |
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Jaz
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Up the payments then after five years, fun fun fun! |
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steffibaby24
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or risk missing a few payments till it goes to a debt collector then there will be no more interest, u pay as much as u want each month!! |
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Julie F
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If you have credit card debts or student loans, you should get a debt consolidation loan from your bank. The rates are better, the payments are easier and sometimes flexible (you can change the monthly payment and pay more when you can without penalty). you can still have fun when paying a loan! |
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PrincessShab1982
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That is a very difficult situation to be in and I am sure you are not the only one in debt of that amount. It can be difficult at times but you have to persevere to clear your debt. Maybe what you should do is apply to consolidate your debt through maybe a loan if you havent done so already. This way there will be one individual payment going out each month instead of several. You will know where you stand each month this way. You could also try and budget, buy cheaper brands of shopping, food, etc. This way you will still have money to go out with and also live on. Yes you have to come with terms your lifestyle possibly changing but it could strike that balance you are looking . Its also good to become better at organising your payments and managing your monthly income by making a budget plan and sticking to it as much as possible. |
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