I owe a $500 bill, $200 bill, a $70 bill and I still owe $11,000 on my car I've been making payments on all three of my bills. They started out alot higher. My credit score is between 500-600 is a result of my younger, less responsible days.
2006-10-13 07:30:41 · 16 answers · asked by Anonymous in Business & Finance ➔ Credit
Monthly net income = $1350.00 give or take and I pay $300.00 for rent/car insurance to my parents and my car payment is like $345.00per month
2006-10-13 07:39:00 · update #1
Guess what guys. I just sent some checks out.
Now I only owe $368 (on the $500 bill) $180 (on the $200 bill)
and I paid off the $70 bill
Yay for me!!!
2006-10-13 09:16:09 · update #2
no, it';s not terrible. now what you do is pay off the smallest one first, then take the money that you were paying that bill with and add it to the payment you make for the next larger amount and get that paid off. keep doing this and very quickly you will have paid off yoiur smaller bills and have more money available to work on that larger amount.
the trick to it is to make sure you take the amount that would go for the smaller payment and apply it to the next debt. don;t just think you have spare money - apply it to the next debt and you will be amazed at how quickly you get it all paid off
also get a copy of your credit report now and make sure you get any errors corrected. it takes some time to get the reports, write to each credit office, so start now so you can start to rebuild your credit
after you pay off your last debt - put the money in a savings account. ING offers about 4.35 interest and you can still have access to it in case you need it.
get dave ramsey book financial peace - it's easy to read and can help get you on track to financial peace
2006-10-13 07:39:13 · answer #1 · answered by island3girl 6 · 1⤊ 0⤋
Oh, jeez- I wish I could switch places with you for one day, credit-wise. You're actually in pretty good shape, compared to a lot of other Americans out there. Whatever you do, don't put those bills in consolidation, because that is roughly the equivalent of filing Chap. 13 bankruptcy, which will severely hurt your credit long-term. The best thing to do would be to pay the minimums only on the bigger bills and try to pay the largest amounts to the smallest bills first, because then you can knock those out of the way. As far as your credit score goes, credit is like a yo-yo- if you do the right things and keep making your payments on time, it will snap back up in no time at all. You're doing just fine!
2006-10-13 14:43:26 · answer #2 · answered by fizzygurrl1980 7 · 1⤊ 0⤋
Being badly in debt is a matter of opinion, do you feel like you are overwhelmed or in over your head? How's your income compared to this? It is never good to be in debt, but sometimes it is unavoidable because we all need cars, education, etc...
I would cut up your credit cards and cancel them if you have any. I would pay off the smaller debts as soon as you can. Then I would look at trading your car for something less expensive (maybe like $5000), if you are serious about getting out of debt. That is just some ideas.
As far as your credit score, don't worry about it unless you are looking at a major purchase like a house or a car. The best thing to do is to make your payments on time, check your credit rating and history once a year (for free), and make sure you don't have any outstanding debts. Good luck.
2006-10-13 14:44:43 · answer #3 · answered by ht_butterfly27 4 · 0⤊ 1⤋
I don't know if you are "badly" in debt, but I would say that you are probably unecessarily in debt. Being in debt is being in bondage... the bible even says that a borrower is a slave to the lender!
Pay off the $500, $200 and $70 bills as soon as possible... work extra hours, get a second job, cut back on phone/cable/eating out. Pay more than the minimum payment!!!
As for the $11,000 you still owe on your car, what is the interest rate? See if you can get it refinanced for a lower rate, then see if you can speed up paying it off. It can be done.
Go to www.Crown.org for some great advice (and a free budget counselor) on money matters.
2006-10-13 14:36:48 · answer #4 · answered by Harvie Ruth 5 · 0⤊ 1⤋
TOO MUCH DEBT for you. Pay everything off, the only thing to ever go in debt for is real estate (and that only because it may appreciate). Pay the credit card bills first. Lower the car insurance if you can by getting less coverage (as your lender may allow of course).
2006-10-13 14:48:42 · answer #5 · answered by victorschool1 5 · 0⤊ 1⤋
That's nothing. The average American is carrying debt around $5,000 in credit card debt, plus whatever car payments that exist.
2006-10-13 14:39:28 · answer #6 · answered by JuJitsu_Fan 4 · 1⤊ 0⤋
That question cannot be answered unless we know how much you make and what your expenses are on a monthly basis. Whether you are badly in debt is determined by your debt to income ratio. Generally, if you pay out more than you earn, you are badly in debt.
2006-10-13 14:33:30 · answer #7 · answered by GreenEyedSista 4 · 1⤊ 1⤋
thats nothing. Pay off your $70 asap then work on the other three.
2006-10-13 14:34:02 · answer #8 · answered by Anonymous · 1⤊ 0⤋
Depends on what your income is and if you are easily keeping up on the bills and all the extra's of life.
2006-10-13 14:38:18 · answer #9 · answered by Anonymous · 0⤊ 1⤋
I suggest you to keep sending more checks until you are DEBT FREE.
After that, open a brokerage account at TD Ameritrade and send them half your salary.
2006-10-13 21:26:01 · answer #10 · answered by Anonymous · 0⤊ 1⤋