O/T-Credit Card Consolidation
- Thread starter kittymom
- Start date
It's actually better to do a "debt snowball". First, figure out how much the total of all your minimum payments are and then figure out how much more over that you can pay every month. Every month pay the minimum payment on every card except one you can either do the one with the smallest balance or the one with the highest interest rate. All of the extra amount you pay goes directly toward the balance so you pay it off faster. Once that one's paid off, take the amount you were paying on that and put it towards the next one. Keep going until it's all paid off. The big trick is not using the paid off cards.
Hi Shan,
Do you own a home? If so, maybe an option is getting a home equity loan to pay off all of your bills. Then...tear up the CC:7
BUT, only if you have enough equity in your home to do so. You would also be able to write of the interest on the loan.(Verify with an accountant....that's what I did in the past).
If you don't own a home, mathgeeks suggestion is a great one!
Do you own a home? If so, maybe an option is getting a home equity loan to pay off all of your bills. Then...tear up the CC:7
BUT, only if you have enough equity in your home to do so. You would also be able to write of the interest on the loan.(Verify with an accountant....that's what I did in the past).
If you don't own a home, mathgeeks suggestion is a great one!
I just did the unthinkable, I borrowed from my retirement fund to pay off my charge cards. My cards ran for about 5 years with my paying minimum payments, I've got dozens of excuses. My retirement loan is 3% to myself whereas the cc's were 14 - 21% to someone else.
I lost the compounding interest in the retirement fund.
I've managed to get about 75% equity in my house, I'm not borrowing against it.
Dave
I lost the compounding interest in the retirement fund.
I've managed to get about 75% equity in my house, I'm not borrowing against it.
Dave
Miss Lee
Cathlete
>I donot own my home. I don't know why I have such a bad
>feeling about consolidation-maybe because I don't understand
>how it works? Thank you both for the great suggestions. I
>think maybe I will use mathgeeks.
>
>
Shan
Kittymom, I think mathgeek gave you some really sound advice. Check out clarkhoward.com. He offers very good advice regarding finances and debt management.
Michele
>feeling about consolidation-maybe because I don't understand
>how it works? Thank you both for the great suggestions. I
>think maybe I will use mathgeeks.
>
>
ShanKittymom, I think mathgeek gave you some really sound advice. Check out clarkhoward.com. He offers very good advice regarding finances and debt management.
Michele