What Is The Most Credit Card Debt You Eliminated In One Year? How Did You Do It?
December 16th, 2008 | 
Author: I'm looking for inspiration so I can get this damn debt out of my life!
I was raised by a pair of "Depression Babies" so (thank goodness) I have never really had much credit card debt. You can get the debt burden out of your life much faster than you may think. Depending on the total amount and how quickly you want to be out from under, you might consider getting a tempotary part-time job and use that money to pay it off faster. I think that this is the quickest, easiest way to get rid of your debt. Make a list of all of your credit cards, how much you owe on each, and the percentage of interest being charged on the account. Always pay off the highest interest rate card first, then the next highest and so on. Pay the minimum due on all of them and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on card #1 (the minimum payment and the extra payment) towards card #2. That will pay card #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly . Keep doing this with alll of them and then go on down through the last one and sooner than you think, you'll be done.
To start :
Card #1 (highest interest): minimum payment+ extra payment
Card #2 (second highest interest): minimum payment
Card #3(third highest interest): minimum payment
Card #1: paid off
Card #2: minimum payment from Card #1+ Minimum payment from Card #2 +extra payment
Card #3: minimum payment
Card #1: paid off
Card #2: paid off
Card #3:Mimimum payment from card #1+ minimum payment from Card #2+ minimum payment from Card #3+ extra payment.
Just keep going down through the cards always adding the payment you were making to the account you just paid off to the next card on the list.
That way, you will get them all paid off, on time, and pay the least interest.
After you get them all done (or even while you are on your "debt diet"), start an emergency fund. Begin with saving $1000.00 and then after you get everything paid off add to your emergency fund until you have between three and six months of your expenses or your salary, whichever makes you feel the most comfortable. The other thing we do is to pay ourselves a "car payment" into a separate interest bearing account. That way when we need a car we can pay cash for it and we just keep making the "payments" to ourselves, earning interest instead of paying it. We also never buy a new "new car" since a new car loses so much (up to half) of it's value in the first three years. Plus the car insurance and registration is much cheaper.
Posted in eliminate credit debt
it wasn't credit card debt, but the wife and I paid off over $30k in auto loans over an 18 month period. We set a budget, adhered to the budget, and then hammered away. Takes some discipline to not go out and splurge when you start seeing your checking account balance getting really big. But then we'd cut a check to the finance company, and BAM! Debt gets hammered away.
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Right out of college, I had 24k in unsecured debt. My first entry-level job only allowed me to pay off 4K of this in the first year after college. So I buckled down and took on a second job as a night auditor at a hotel. Everything I made at the hotel went straight to the unsecured debts. I was debt free in eleven months!
References :
I was raised by a pair of "Depression Babies" so (thank goodness) I have never really had much credit card debt. You can get the debt burden out of your life much faster than you may think. Depending on the total amount and how quickly you want to be out from under, you might consider getting a tempotary part-time job and use that money to pay it off faster. I think that this is the quickest, easiest way to get rid of your debt. Make a list of all of your credit cards, how much you owe on each, and the percentage of interest being charged on the account. Always pay off the highest interest rate card first, then the next highest and so on. Pay the minimum due on all of them and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on card #1 (the minimum payment and the extra payment) towards card #2. That will pay card #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly . Keep doing this with alll of them and then go on down through the last one and sooner than you think, you'll be done.
To start :
Card #1 (highest interest): minimum payment+ extra payment
Card #2 (second highest interest): minimum payment
Card #3(third highest interest): minimum payment
Card #1: paid off
Card #2: minimum payment from Card #1+ Minimum payment from Card #2 +extra payment
Card #3: minimum payment
Card #1: paid off
Card #2: paid off
Card #3:Mimimum payment from card #1+ minimum payment from Card #2+ minimum payment from Card #3+ extra payment.
Just keep going down through the cards always adding the payment you were making to the account you just paid off to the next card on the list.
That way, you will get them all paid off, on time, and pay the least interest.
After you get them all done (or even while you are on your "debt diet"), start an emergency fund. Begin with saving $1000.00 and then after you get everything paid off add to your emergency fund until you have between three and six months of your expenses or your salary, whichever makes you feel the most comfortable. The other thing we do is to pay ourselves a "car payment" into a separate interest bearing account. That way when we need a car we can pay cash for it and we just keep making the "payments" to ourselves, earning interest instead of paying it. We also never buy a new "new car" since a new car loses so much (up to half) of it's value in the first three years. Plus the car insurance and registration is much cheaper.
References :
Hello TwinkaTe…,
For most individuals, a savings of $45,000 over 30 years could make a big difference. Think of the opportunities for productive use for that money! For those with a credit card debt problem, eliminating it could be the best chance over the course of 30 years to build up savings and investments. Being smart about credit card debt is one surefire way to increase wealth over the long run.
That's quite an investment!
References :
Tips for Choosing a Free Prepaid Debit Card
http://debitvscredit.blogspot.com/
There are some articles on how How to Get Out of Debt , How to Stop Debt Collector, Free Credit Card Debt, if you are interest to get further information, you can take a look at http://debt-solution-reduction-relief.blogspot.com
Hope you can clear your debt asap, good luck!
References :
Hi,
I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://creditsolution.ez-mart.biz
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