the best bet is try to find extra money where you can. Many options such as shopping habits. Start shopping with coupons and start buying store or generic brand items. Take a look at how much do you eat out or order take in. Just start cooking from home. Is a second job an option for you or your sig. other? How many phones do you have? Just by getting rid of your land line you would save at least $50 a month. What about cable? Either down grade to the basic or get rid of it all together. Just down grading to the basic, even analog is available, will save you close to $60-$80 a month. What is your internet modem? Cable? DSL? Down grade to dial up. Right there is about $40 in savings. You need clothes or shoes? , no shame in going to Wal-Mart. I Just picked up three nice polo shirts over the weekend there for $10 each.
Just take it one debt at a time. I recommend the snowball effect. After finding some extra money apply that to your lowest balance due and keep up those payments until it is paid off. And then take the money you using to pay off the last card and apply that to you next lowest balance and keep going, letting your payments snowball. For example : Lets just say you have 3 credit cards. Card 1 has a $2,000w/ $300 min pay card 2 has a $5,000/$400 min pay card 3 has a $10,000 balance. $600 min pay. You've figured out a way to come up with an extra $300 a month you can use towards debt. Take that $300 and apply that towards the min pay of card 1, now you are paying $600 a month. All the while still making the min payments on the other two cards. Pay the $600 a month until card 1 is paid off. Now take the $600 you have been paying from card 1 and apply that to card 2, Now you will be paying $1,000 a month until card 2 is paid off. Once card 2 is paid off apply the $1,000 to the $600 you've been paying on card 3 and now your snowball has reached $1,600 a month you can use to start paying off card 3.
Paying off the card with the lowest balance first is good for a couple of reasons, you will see results quicker which in turn is a great motivation factor to keep going also by the time you get to your highest balance your snowball will be large enough that your payments will have a significant impact. Just spreading around the wealth will get you no where.
and lastly, it wouldn't be a post from me if I didn't recommend Dave Ramsey's Total Money Makeover.
It cost like $25 new at any bookstore or you can buy it used from amazon for around $10. It is fantastic for getting out of debt, IMO there is no one better, it's hard, and it's not going to give you answers that you may want to hear but it works. It'll be a long hard road but you can definitley do it. Good Luck and keep us posted.
It cost like $25 new at any bookstore or you can buy it used from amazon for around $10. It is fantastic for getting out of debt, IMO there is no one better, it's hard, and it's not going to give you answers that you may want to hear but it works. It'll be a long hard road but you can definitley do it. Good Luck and keep us posted.Who needs to buy a book? You've got this forum!
Boswd wrote:I personally wouldn't pay any credit counseling agencies. There are soo many DIY books out there. this is something you can definitly do yourself.
