I could be wrong but I don't think you need a third party. You can do this by yourself. 1. Stop using the cards. 2. Reduce interest rates the best you can (personal loan at a lower rate, call and ask for a lower rate, balance transfer to a lower rate, etc.) Then pay off the highest rate first, meeting the minimums of the others. Good luck.
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Would you be asking about debt consolodation loans you used to pay off CC Debt? Or just high util % CC's?
@mrinal wrote:Hi,
I have around 30k in credit card loans. It badly hurts my financial activities. I am trying to minimize the loan amount. I receive letters from debt advisors regularly. Are they legally work or they are frauds? I am confused. Could you please tell me about some good debt advisors who can help me bring my total loan amount down?
Thanks.
IMHO yes they are frauds.
My recommendation would be to use the Snowball method.
1. Stop using cards.
2. Pay off smallest balance first, then next smallest, and so on.
3. On other cards pay minimum + something each month.
As each balance turns to zero, that will free up your remaining monthly cash to apply to the next smallest balance.
@SouthJamaica wrote:
@mrinal wrote:Hi,
I have around 30k in credit card loans. It badly hurts my financial activities. I am trying to minimize the loan amount. I receive letters from debt advisors regularly. Are they legally work or they are frauds? I am confused. Could you please tell me about some good debt advisors who can help me bring my total loan amount down?
Thanks.
IMHO yes they are frauds.
My recommendation would be to use the Snowball method.
1. Stop using cards.
2. Pay off smallest balance first, then next smallest, and so on.
3. On other cards pay minimum + something each month.
As each balance turns to zero, that will free up your remaining monthly cash to apply to the next smallest balance.
+100
The only reason to choose snowball over avalanche is if it makes you feel rewarded and keeps you motivated to keep going. If you can stick to it, the avalanche method is the better method - you'll pay less interest over time and you'll pay your debt off sooner since more of your money is going to principal.
@ptatohed wrote:The only reason to choose snowball over avalanche is if it makes you feel rewarded and keeps you motivated to keep going. If you can stick to it, the avalanche method is the better method - you'll pay less interest over time and you'll pay your debt off sooner since more of your money is going to principal.
There is another reason to choose snowball. As soon as a balance is paid off, even it's a small balance, the amount which would otherwise have been devoted to the minimum payment on that account is now freed up to apply to the next smallest balance.
@SouthJamaica wrote:
@ptatohed wrote:The only reason to choose snowball over avalanche is if it makes you feel rewarded and keeps you motivated to keep going. If you can stick to it, the avalanche method is the better method - you'll pay less interest over time and you'll pay your debt off sooner since more of your money is going to principal.
There is another reason to choose snowball. As soon as a balance is paid off, even it's a small balance, the amount which would otherwise have been devoted to the minimum payment on that account is now freed up to apply to the next smallest balance.
Understood, but the math doesn't lie. Avalanche will cost less over time and pay off the debt sooner. If someone sticks to it.