Anyone dealing with debt?
Answer:
Most people find themselves in debt after making poor financial decisions, living beyond their means, and/or losing a job. It does not matter how you got there, it is just important that you do not stay there.
A simple way of climbing out of the debt is to make a list of all of your debts and amounts owed - credit cards, department store cards, student loans, etc. This is to gauge the depth of your debt.
You can approach paying off your debt in one of two ways - one is to pay off the smallest amount first, while paying the minimum on the rest. The next is to pay more on the highest interest debt and pay the minimum on the rest. I prefer the first method.
Why? Because by paying off your smallest debts first, it seems as if you are accomplishing something financially.
If you are concerned with high interest rates, try to get your higher interest credit card debt transeferred to a card with a lower rate.
Once you have paid off the first debt, take the money that you were paying on that debt and put it towards the next. In this way, you get a snowball effect that gathers momentum with each debt that is paid off.
To understand this method better, pick up a copy of the debt cruncher software from:
http://www.credit-score-and-report.com.
Credit cards,Hospital bills, ECT.. Dont see any way to pay it off soon
I used to be in debt, but got out of it by reducing my household
expenses and earning extra income.
Try this Site for lots of Ideas: http://www.realmoneyideas.com
Read the following pages: "Cutting Expenses"
"Additional Income" and "Money Saving Ideas".
My plan for paying off debt it quite simple. The experts say pay off the highest interest card first. I have another plan that usually works quite well if you have a lot of debts, credit cards and the like. Mine works like this. First you pay off the cards with the lowest balance first. Then after that you get that paid you can add that payment to the next card and you will wind up paying it off quicker. Just as an example say you pay off the first card and you were making a 50 dollar payment on it. Well then add that to the second card you are now paying on. Say you were paying 30 on it at the time. Now you can pay 85 on it and it does not hurt your budget. The effectiveness of this is when you get the second one paid for you can now add the 85 to the next card. So say you then are paying 25 on the next card, well then add the 85 to it and you are paying 110 on it. This works real well.. But it doesnt hurt your budget and will pay off debts faster. Good luck, Hope this suggestion helps.
I have two car loans out in my household and a credit card balance. For the credit card, I only charge what I can pay off, so I never carry a balance from month to month. As for the car loans, because I'm a new driver and the insurance for my cars are extremely high because of it, I'll be making double payments on the less expensive of the cars. I'll be using the money we get back from school and our tax returns to pay it off as soon as possible. Then I'll switch the insurance on that car to PLPD to save money. I'm then going to take all the savings from the car payments on that car, plus the savings on the insurance, then pay that extra on the more expensive of the cars.
I've been in debts and now it's over.
I changed 2 things:
- I'm asking myself before every buy : "is it worth it ?"
- I "tax" myself on every money I spend that is not grocery or rent or electricity. 8% that I deposit in my savings every time I go to the ATM.
I got help to pay back my debts. a Consolidation from a Bank.
Good luck !
only school debts. And i plan on paying it.
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