Every one wants to free from debt but how? What is the best way to get out of the credit card debt? Do debt consolidation companies really work? The best way to stay out of debt with credit card companies is to not use the card for anything you can't afford.
If you pay it off every month, you won't have any problems.
Most debt consolidation companies will actually hurt your credit and credit card companies love it when we get carried away..
they can charge fees we never knew existed and they will have a perfectly legal excuse or explanation.
if u owe, pay, don't get caught in the cycle.
debt consolidation works for the company...
not for us.
Debt consolidation companies will allow you to make minimum monthly payments but your principal balance will remain the same Whereas a Debt Settlement company will negotiate with your creditor on your behalf and bring down your principal debt amount by around 30% to 70% depending on your credit companies.
Most debt consolidation programs are a rip-off- either actually costing you money or just doing what you could already do.
Consider this- many of them brag about their repeat customers.
If they did their jobs, they would not have any! There is no fast way to get out of debt.
The best is the 'Snowball Technique' With this technique, first stop charging things.
Try to put some money in savings to cover the things you would normally charge.
(There are a lot of books and tips on trying to live on less so you can do this.
This hurts too, but not as much as debt does.
) Next, you line up your card debts.
The way you line them up takes a little tweaking.
You want to pay off the highest interest cards first, but paying off smaller cards gives you more leverage later.
On most of the cards, pay about the minimum (always on time to avoid hurting your rating!).
On whatever card you decide is #1, pay as much as you can- at least 10% more than the minimum.
Now- no that glorious day that you finally pay off Card #1, take the entire amount you were paying on it an apply it PLUS the minimum to Card #2.
When this one is paid off, apply the entire amount plud the card's minimum to Card #3 and so on.
Every time you pay off a credit card, you free up money to pay off the next one faster, and faster, and faster! According to the experts, anyone should be able to get debt free in seven years this way.
A modification of the Snowball is to take SOME of the money each time and put it in savings.
Different modifications take different amounts, but I would not take more than 25% of the old card payment, and not until paying off the 3rd card.
Once the savings account has about $5,000, then reapply ALL extra money to debts.
If you pay it off every month, you won't have any problems.
Most debt consolidation companies will actually hurt your credit and credit card companies love it when we get carried away..
they can charge fees we never knew existed and they will have a perfectly legal excuse or explanation.
if u owe, pay, don't get caught in the cycle.
debt consolidation works for the company...
not for us.
Debt consolidation companies will allow you to make minimum monthly payments but your principal balance will remain the same Whereas a Debt Settlement company will negotiate with your creditor on your behalf and bring down your principal debt amount by around 30% to 70% depending on your credit companies.
Most debt consolidation programs are a rip-off- either actually costing you money or just doing what you could already do.
Consider this- many of them brag about their repeat customers.
If they did their jobs, they would not have any! There is no fast way to get out of debt.
The best is the 'Snowball Technique' With this technique, first stop charging things.
Try to put some money in savings to cover the things you would normally charge.
(There are a lot of books and tips on trying to live on less so you can do this.
This hurts too, but not as much as debt does.
) Next, you line up your card debts.
The way you line them up takes a little tweaking.
You want to pay off the highest interest cards first, but paying off smaller cards gives you more leverage later.
On most of the cards, pay about the minimum (always on time to avoid hurting your rating!).
On whatever card you decide is #1, pay as much as you can- at least 10% more than the minimum.
Now- no that glorious day that you finally pay off Card #1, take the entire amount you were paying on it an apply it PLUS the minimum to Card #2.
When this one is paid off, apply the entire amount plud the card's minimum to Card #3 and so on.
Every time you pay off a credit card, you free up money to pay off the next one faster, and faster, and faster! According to the experts, anyone should be able to get debt free in seven years this way.
A modification of the Snowball is to take SOME of the money each time and put it in savings.
Different modifications take different amounts, but I would not take more than 25% of the old card payment, and not until paying off the 3rd card.
Once the savings account has about $5,000, then reapply ALL extra money to debts.
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