I%26#039;m in way over my head, as some would say. I owe a little over 5 grand on my primary credit card and the max is $5,300. I owe about $500 on another, and $400 for a traffic citation. What should I attack first? I have a little over $2,000 available. Thanks for your help.
What%26#039;s the best way to eliminate credit card(s) debt?
try this and you will save a lot, reduce your debt and improve your credit rating.
1) pay the traffic citation.
2) transfer your 5500 balance to a new credit card that offer 0% INTRO APR with 12 months INTRO period. get one if possible one that don%26#039;t charge annual fee. if you can get the new card regular APR that is lower than current it would be great.
3)pay on-time minimum fee every time. make this a priority. try to set aside 2 months minimum fee in your safe. don%26#039;t use all the 2000 to pay the balance. you won%26#039;t accumulate new interest because the 0% APR so no need to rush. at least you can buy time to produce more income to pay the balance.
4)before the end of the INTRO period transfer your balance to another new credit card with the same features or better if you can find one.
5)repeat step 3 and 4 until you pay all the debt.
6)make sure you don%26#039;t accumulate new debt with new purchase because 0% INTRO APR usually only cover transfered balance.
7)credit card is an advantage if you play the game right.
it is a working tool to establish high credit rating which allow you to obtain finance easily which mean lower interest rate than credit card.
hope that helps a bit.
What%26#039;s the best way to eliminate credit card(s) debt?
The one with the highest interest rate,
What%26#039;s the best way to eliminate credit card(s) debt?
Pay your traffic citation. Pay off the $500 account, and put the rest toward the primary card. Do not use the cards again until you have paid everything off. Then use them only to the extent that you can pay the balance off monthly.
What%26#039;s the best way to eliminate credit card(s) debt?
Do you have a positive cash flow each month? If you paid cash for everything would you have money left over? Try it for a month and see what happens.
What happens if you do not pay the traffic citation? Do you lose your license and your ability to travel to work? If so, I would pay the traffic citation immediately.
What%26#039;s the best way to eliminate credit card(s) debt?
Since you have $2000. available, you have a head start. I would take care of the $400 traffic citation, then the $500 and pay the remaining $1100. on the $5000 one to start with. Then I would pay the remaining primary credit card as much as I can on a monthly basis (pay no attention to the minimum due as that will take forever), and not only will the balance get paid promptly, but you%26#039;ll have better credit as a result. Once you%26#039;re paid off on your primary card, stick to a debit card for your purposes as it draws funds from your checking account. Just make sure that you do NOT close your accounts - just put the card somewhere safe and not use it. Closing accounts lowers your credit score.
Good luck, you%26#039;re better off than you think.
What%26#039;s the best way to eliminate credit card(s) debt?
The one with the highest balance, that is the one that affects negatively your credit the most. If you have a balance on a card that is more than 50% of the limit your creddit score is going down every month.
What%26#039;s the best way to eliminate credit card(s) debt?
www.daveramsey.com
cut those cards up now. get a 2nd job
What%26#039;s the best way to eliminate credit card(s) debt?
I agree with those who have stated to pay off the traffic citation and the smaller credit card, then pay off the rest to the large credit card. If you have money coming in then you will want to continue making payments (as frequently as you can, or at least once per month when the payment is due) to the $5,300 card. I advise you to cut up the card and not use it again. The credit account can still stay open, but you won%26#039;t be tempted to use it again. I would recommend you start saving some of your income for emergencies. Put the savings in a Money Market account so it will earn interest. You could start with something like $500-$1,000. That way you will be able to use your own money when something comes up, instead of using the credit card.
I would start the emergency fund while initially paying the larger credit card%26#039;s minimum payment. Once you have your emergency fund in place, then you can start being more aggressive with paying the balance down on the $5,300 card.
What%26#039;s the best way to eliminate credit card(s) debt?
If I were you I would free up as much cash flow as possible. I would pay the $400 citation and the $500 but then you MAY want to save the rest and expand your income to pay off the $5300.00.
I think that the big thing that you will want to address is WHY did you get into debt?. You may say well I had.... But I would suggest that you look at things and if something like that happens EVERY year then you need to adjust how you plan financially.
I would ask you to add up how much you spend on traffic fines and citations per year. Look at your pay and divide how much you BRING HOME by how many hours you work in a pay period and then figure how many hours the citations are costing you every year. For example if you are bring home $30 per hour and you are getting 1 $400 speeding ticket per year and you were speeding to save 20min. The attempt to save 20min cost you a little over 13 working hours.
I guess what I am really getting at is make sure that you look at the root cause of things not just the amount of the debt.
What%26#039;s the best way to eliminate credit card(s) debt?
I would pay off the ticket and the $500.00. put $1000.00 in a starter emergancy fund. Then put as much as you can on the big one every month till its gone. But, first cut up all your cards and live debt free. If you dont you are gonna end up in the same place you are now.
What%26#039;s the best way to eliminate credit card(s) debt?
If you are caught in the credit card debt trap, approach a debt consolidation company for help, instead of paying high rate of interest to your card issuer. Most of the debt consolidation companies provide loans to help you tide over the credit card debts. These loans are known as credit card debt consolidation loan. The advantage of this loan is that you are charged a low rate of interest. The difference between the interest charged on the credit card and the interest on the credit card debt consolidation loan is substantial, saving you quite a big sum of money.
However you should note that credit card debt consolidation loan may not be right for all. Before applying for any loan, consult your financial advisor and apprise him of your problem. He will analyze your situation, and decide whether credit card debt consolidation loan is right for you or not. Take this loan only if he recommends it.
What%26#039;s the best way to eliminate credit card(s) debt?
Call a few company%26#039;s and ask if you can transfer the amounts to one card, make one payment do not use the cards anymore.
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