Debt question?

Question

1card 18,000
2card 7,000
3card 3,000
question equity home loan? pay lowest monthly with 1500? or lastly take savings of 5,000 to pay off the lowest?

Answer 1

First of all, you can't get out of debt by taking out a loan. By doing that, you are just changing who you owe the money to.

Keep $1000-1500 in savings to use for emergencies, then use the rest to kickstart your debt payoff.

Many financial advisors recommend a technique that is something often referred to as the "debt snowball."

The basic steps in the debt snowball method are as follows:
1. List all debts in ascending order from smallest balance to largest. This is the method's most distinctive feature, in that the order is determined by amount owed, not the rate of interest charged. However, if two debts are very close in amount owed, then the debt with the higher interest rate would be moved above in the list.
2. Commit to pay the minimum payment on every debt.
3. Determine how much extra can be applied towards the smallest debt.
4. Pay the minimum payment plus the extra amount towards that smallest debt until it is paid off.
5. Then, add the old minimum payment from the first debt to the extra amount, and apply the new sum to the second smallest debt.
6. Repeat until all debts are paid in full.

Answer 2

Home equity then put the cards away and resist the urge to use them. Most people make the mistake of taking a home equity to pay off their cards then run the balances back up ruining their credit score. Also the interest on the home equity is tax deductible, the interest on the cards is not

Answer 3

step 1: Cut up all three cards
step 2: Take all of your savings and pay the debt down
step 3: Pay off the balance with a home equity loan
step 4; Cut up all the credit cards you did not include in step 1.
step 5; Pay into your mortgage like it was your best savings plan, because it is.
step 6; Repeat 5000 times every day, "Credit card companies are not my friends"
step 7: live within your means, never borrow again, save for what you want.

Answer 4

d s,

My opinion - home equity loan. Pay 'em all off if you can. Do NOT use your savings - that is emergency money.

Answer 5

Pay off the lowest and use what your payment use to be to pay off the next one. Ie the 7000. Then use that payment that you have been paying to pay off the 18,000.