Is it better to severly pay down one debt or pay over the minimum on all debts about equally?
Answers: A friend of mine is a finance major at school, and she told me about this website powerpay.org you just put in your bills and it figures out a schedule for you and shows how much time it takes to pay it off if you do highest interest or smallest balance or whatever, but it puts it all into perspective for you.
In my experience, pay the mininum's on all but the smallest and put all the extra money you can onto the smallest. Then when that one's paid off you take what you used to be paying and add it to the second smallest - it's a great way to motivate yourself to keep going when you're able to little by little get rid of them and focus on fewer and fewer. It's the Dave Ramsey plan and it worked for my husband and me.
www.daveramsey.com
For each card find out what interest rate you are paying. pay the minimum off on all but the highest. Pay as much as you can on the highest. Also, don't charge anything on the highest card;
Repeat the process once the highest card is paid off. Try to get to only two cards and then see if you can only charge what you can pay off each month.
Pay down one and you'll be answering the phone constantly and opening letters announcing 'past due'!
Pay as much as you can on all of them...law says you can ship them a dollar a month.
Pay on all of them but any extra should go on the one with the highest interest rate.
There is always debt consolidation. We had to do that many years ago, when my husband had to quit work because of a serious back injury. It worked out really well and we just had one payment. When his benefits came in, it eased the burden and we were able to pay things off a lot quicker. It's just a thought. I hope that you can work something out as it is a real beggar.
You pay the most on the one with the highest interest rate, because the unpaid amount of that one will cost you the most money. It will probably be the credit card with the smallest amount owing. Credit card companies lower the interest rate when the amount owed passes $500 (or some set amount). So, the greatest saving will be realized when that amount is paid off first.
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It depends on the person.
If you're finding it hard to stay motivated and need to experience the thrill of paying off a debt, sometimes paying the lowest debt first (regardless of interest rate) will be better for you.
However, if you are a miser like me, and don't like paying any more than the bare minimum that you have to pay, then pay off the highest interest rate loan first, while making minimum payments on the other, and then move on to the second biggest interest rate. This will usually save you money per dollar borrowed. For example, say I have a loan for $2000, at 25%, and a loan of $2000, at 8%.
Each year I have the first loan, its costing me $25 for every hundred dollars I still owe on the loan. Every year I have the other loan, it's costing me $8 per hundred. The first loan will cost $467 in interest if I pay it off within 12 months. The second loan will cost $266. So getting rid of the higher interest loan will save me more money. If I'd only borrowed $1500 at 8%, I'd have paid about $200 in interest that year. So even if it's a lower amount, it's still not as cost effective in this case as getting rid of the higher interest rate loan. If you're on a tight budget, getting rid of the loan that is eating the most money might be the best long term option, while still of course making minimum payments on the other.
If you were only paying the minimums on each loan, you would usually be only paying 2.5% of the principal of the loan, and it would take you years, and vast amounts of interest, to pay off the loan. So if you're limited for money, paying the highest rate loan might be the best use of your money, although it might not give you the 'victory factor' you crave. If you're motivated, it's the best option.
I've learned from experience that the best thing to do is write down all of the debts you have on a sheet of paper along with the interest rate and amount due for each debt. Find the debt with the highest interest rate and put your efforts into paying that off first while still paying as much as you can over the minimum amount due on the others. The bills that will always get you caught up in debt the fastest are the high interest rates ones! No sense in putting your efforts into paying off debts with 0% interest, even if it the lowest debt because in the long run you'll cost yourself hundreds of dollars.
Question around credit cards.. please read!?
I just get my 1st credit card with a stripe of $200. When I get my first bill for utter.. $30 dollars or so and pay it, will it be in motion back up to 200 even though I spent more afterwards 30 or do i have to recompense the whole total previously it goes posterior up? lol.Does that make sense?
Answers: The give somebody the third degree does not really make sense no but here's what I reckon you are saying...a credit card beside an available line of credit of $200. If you spent $200 and clear a payment of $30 consequently your available line of credit is $30 and you still owe $170. If the file of credit is $200 and you spent $30 and you pay it adjectives back consequently yes, your credit is back to $200.
Here's a tip though. NEVER recompense just the minimum amount due! Always settle up at least double if you can! Otherwise it'll pocket ages to pay past its sell-by date the card and the interest rates will cost you a lot.
income the total every billing
DO NOT pay interest
You merely pay bad the balance you enjoy used. If you only bought something for $30, consequently thats all you owe and the subsequent month you are back at $0 and enjoy the full $200 to use.
please don't take this the wrong course but you must be very fussy with credit cards. you are the type of individual that credit card companies love, a person who doesn't know how debt works and uses it anyway. when you use your card the amount of the charge is deducted from your available credit. $200 - $30= $170. they apply interest to the debt at what ever rate you are at, let's right to be heard $1 for your purposes. $170-$1=169. you pay $30 on your bill so $169+30=199. you are upside down surrounded by the debt for $1. it seems approaching small numbers but when the charge and debt amounts get larger the debt add up VERY QUICKLY and it's hard to earnings off. DON'T USE CREDIT UNLESS THERE IS NO ALTERNATIVE TO BUY YOUR DAILY NECESITIES.
try your best to payment it off!! as much as possible.
never take-home pay interest!!
Bankruptcy?
ok I'm 20 years old and I hold a 5 month old child girl I use to live in the city on my own whitch is how I crease my credit but when I got pregnant I have to move to the bundis with my BF and since is such a small town adjectives the jobs are taken and I cant drive motivation my car won't put together it any further than a few miles besides that I dont have any family unit to watch the kid and my BF makes enought money to cart care of adjectives 3 of us and to pay his debth and bills and nearby is no extra baby sitter money.Well my debth is surrounded by betwen 12 to 15 g's betwen med bills, CC bills personal loans etc,etc..and I already started to get call from companys saying that they are going to start proceding against me and I really dont own a lot of option here but I dont want to go to top-security prison and live my baby so ALL THE ADVISE IS VERY APRECIATED, THANK YALLAnswers: You won't dance to jail for failing to retribution debts, UNLESS you get sued and don't show up to court when they summon you for a citation to discover assets, and consequently they get a rule served on you requiring you to appear within court. Otherwise you never go to top-security prison (and in that situation it would lone be until you post bond, it's not a jail sentence, but if you shift to court that won't happen anyway).
In your situation, collapse is probably a good impression since you don't seem to hold much hope of paying back the debt any time soon. You should consult a liquidation attorney.
Well, the 1st thing to do is composed down, there is NO prison, for not man able to take-home pay, if they sue you, make sure you dance to court and explain it to the judge, (they can send down you for not showing up). Quit answering the phone, screen it near an answering machine, if they can't craft contact, they can't upset you! Check with your state/county welfare system for sustain with medical for u & kid (maybe they'll help near bill). Quit worring so much, its not that big of a deal! pious luck