Reply to give me a plan to get out of debt!!

Forum Index » Money and Finances

Reply to "give me a plan to get out of debt!!"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][b]As with other PPs, I normally advise people to pay off the highest interest payment first as that will save you money in the long run, but I have one caveat.  When you have one payment that you can clear entirely in one or two payments, then you can pay that one off so that you have fewer payments to track.[/b]

In this case, assuming with your $32K salary and about a 25% withholding rate, you are taking home about $2K per month.  Since you have one CC at $15K, one at $12K and one at $1500, I would pay off the $1500 card, and with the remaining $500, I would pay a minimum payment on the CC with the lower interest and the balance on the CC with the higher interest.  Next month, you will be down to the two high balance cards and you should pay the minimum payment on the CC with the lower interest and the balance on the CC with the higher interest.  Continue doing this until that balance is paid off, then make your full $2K payment on the remaining card until the balance is zero.

An reiterating what another PP said, you need to put those cards away and not use those again until you've paid them off.  [/quote]

Completely agree with this advice and the example. Also, paying off a card balance in full motivates you to knock down those other balances. Good luck OP, and stay away from the credit cards.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics