I've been reading up on getting out of debt
I've been reading up a bit on what's the fastest way to get out of debt.
The consensus seems to be that you take all of your debts and write them all down and then arrange them from least to greatest.
You then pay the minimum payment on all of them and put everything extra on the smallest one. Keep doing that every month until the smallest one is paid off.
Then you start in on the second smallest one, only this time, you add what you were paying on the smallest one to the minimum payment that you were already paying on the second one. So each time a debt is paid off, you snowball the payments to the next debt. So then by the time you reach the largest debt, you are paying a lot every month on that large debt and it pays off quickly.
This seems to work better than taking the highest interest ones first, because if your highest interest debt has a large balance, you will still have to make the minimum payment on the smaller ones that may have a lower interest rate, so you will take longer to pay it off.
Of course, all of this assumes that you have an income that is high enough to make the payments in the first place. Some people have more of an income problem than a debt problem. If that's the case it would be time for a second job.
posted by jagular @ 12:52 PM
7 Comments:
For some of us, a first job would be good! I like your idea, though. I may try that. I have two that have around $3000 each, the other two have over $20K each. That may work for me!
Very true. I'm very fortunate to be a stay at home wife, and have pretty hefty allowance (and my own savings). Part of Honey's income is commission, so he just steps it up a bit if I say we need more money for Whatever. (I only ask when it's not stuff for me, but for a major house repair or something like a car breaking down and we have to spend like $2,000 out of the blue.) Then we both tighten the reigns so we don't have to charge anything.
I pay them off then jack them back up..its my hobby.
I think your "what's for dinner" thing caused your sidebar to go to the bottom. You might want to delete it and see if it fixes it.
Just a suggestion! =)
Oh, yeah, I see now.
Ok, who knew?
Leigh Ann knew, that's who.
I resized it and that seems to have worked.
Thanks a million.
You rule.
I do what I can.
Which isn't much. =)
Just wanted to once again wish you the best of luck getting out of debt. It's gotta be hard, but it sounds like you're determined to do it, which is the first step to success!
I don't know much about debt payment except for when you make a payment each time and see that credit card balance getting smaller and smaller, you feel on top of the world. At least that's how I feel!
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