No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
@Anonymous wrote:
Problem with a debt Avalanche is you see no progress for 6 months, in some cases a year. that does not work with the human psyche. In the future if your income changes downwards, your Avalanche pushes back on you. at least with a snowball once a Card or two are paid off, lenders may increase your limits or offer a balance transfer to hack at whats left.
I see you already have a personal loan another alternative route is to get a higher interest personal loan. It sounds like a terrible thing but if it's interest is less than the credit cards you would still save some money and your credit profile will look better as the debts not in revolvers but an installment loan.
A little O/T but isn't the snowball also sometimes too simplistic. I would think there are cases where:
You have the smallest debt with a very high APR
You have a slightly larger one but with a very low APR
I would guess that you can find cases where putting all the spare money to the second one would remove one debt quicker than putting it all to the first.
https://www.daveramsey.com/baby-steps
Follow these steps to the "T"!!! Do NOT borrow from your 401K to help pay off your debt. Get a written budget and start telling your money where to go. Find out what you can cut out. Find out what you can sell. get a part time job if you need. Being debt free is more important than having a high credit score...credit doesn't build wealth. I guarantee if you follow those steps you'll be debt free in no time.
I won’t hijack your thread but I am in a similar boat. 29k in debt, high apr’s and all from frivolous spending. I have some funds tied up but once that is settled I expect I will still be about 23k in the hole. My income is higher but not high enough that I can just pay it off. Like you I have no baddies or lates so no negatives, and I don’t intend on getting any. I have taxes coming back to help but have begun picking away at the balances via the snowball method as mentioned. Good luck with your efforts. Admitting you have a problem is the first step. Cliché I know , but still true.
To BronzeTrader
I can understand how my debt can be puzzling to some, and your question is legitimate one at best. Up until the 2007 crash I was doing ok for myself. I was executive for hedge fund, but we lost our shirts during the crash. With that said, I was accustomed to certain life style, that I enjoyed. What is misunderstood about people in my situation, is that just because we stop making high income, our lifestyle and the way we live does not automatically stop. Life does not work like that in reality for some. It is process, which one goes through. I know guys how make seven figures, who were in up raw, when their bonus was being cut from over a million, down to ½ million for the year.
Life’s different when one comes from industry that teaches us here in NY, that debt is good, and always use someone else’s money to get ahead. Most people are given debt in one form or another (credit cards, auto loans, mortgages) at will, but very few know how to managed debt.
I was taught early on in life how to make money. However, I was never really taught how to manage debt, so I find myself learning this the hard way. What's important, is that I know the level of debt and carrying cost that is over top, vis-vs-vis my income. Also, that this is my debt and I owned it, no one is to blame but myself. Now, I could call my parents for a check to end this problem here and now. However, that does not help me fix the problem of how got here. For me this is something I needed to go through, and the lessons learned will pay dividends in the future. Because I have story to share with those who are willing to listen, so they don’t have endure something such as this in the future.
@tax_society wrote:https://www.daveramsey.com/baby-steps
Follow these steps to the "T"!!! Do NOT borrow from your 401K to help pay off your debt. Get a written budget and start telling your money where to go. Find out what you can cut out. Find out what you can sell. get a part time job if you need. Being debt free is more important than having a high credit score...credit doesn't build wealth. I guarantee if you follow those steps you'll be debt free in no time.
Curious what the logic is behind funding an emergency fund while you are paying high interest on tens of thousands of dollars in credit card debt. Also curious why it would be bad to borrow from 401k that may actually decrease in value while you are paying guaranteed high interest rates on tens of thousands of dollars in credit card debt. I would even comment on the snowball method, been there done that.
@Chris679 wrote:
@tax_society wrote:https://www.daveramsey.com/baby-steps
Follow these steps to the "T"!!! Do NOT borrow from your 401K to help pay off your debt. Get a written budget and start telling your money where to go. Find out what you can cut out. Find out what you can sell. get a part time job if you need. Being debt free is more important than having a high credit score...credit doesn't build wealth. I guarantee if you follow those steps you'll be debt free in no time.
Curious what the logic is behind funding an emergency fund while you are paying high interest on tens of thousands of dollars in credit card debt. Also curious why it would be bad to borrow from 401k that may actually decrease in value while you are paying guaranteed high interest rates on tens of thousands of dollars in credit card debt. I would even comment on the snowball method, been there done that.
I totally agree. The 401k would never be the 1st, 2nd, or 3rd choice. As a last option, it's not a terrible idea.
I Totally agree with you
@Chris679 wrote:
@tax_society wrote:https://www.daveramsey.com/baby-steps
Follow these steps to the "T"!!! Do NOT borrow from your 401K to help pay off your debt. Get a written budget and start telling your money where to go. Find out what you can cut out. Find out what you can sell. get a part time job if you need. Being debt free is more important than having a high credit score...credit doesn't build wealth. I guarantee if you follow those steps you'll be debt free in no time.
Curious what the logic is behind funding an emergency fund while you are paying high interest on tens of thousands of dollars in credit card debt. Also curious why it would be bad to borrow from 401k that may actually decrease in value while you are paying guaranteed high interest rates on tens of thousands of dollars in credit card debt. I would even comment on the snowball method, been there done that.
I'm not a Ramsey-ite by any stretch, but I get this one - the fund is there to help prevent a sudden car repair or other emergency from forcing you to go back to using the cards again.
Cheers!