2007-10-05 14:51:05 · 3 answers · asked by melissa 7 1 in Business & Finance ➔ Personal Finance
There are two different approaches to this. The first is to list all debts from the highest interest rate to the lowest, attack the highest interest rate and pay minimums on all the rest. The other way is to list all your debts from smallest to largest and attack the smallest first and make minimum payments only on all the others. The first may mathematically seem better but from my experience, the second approach actually works better from a behavioral standpoint. Either way, you need to cut your lifestyle and get angry. Have a garage sale and get a second job. Debt settlement, and consolidation can cost you more money and hurt your credit so avoid at all costs. Get intense and soon you will be free!
2007-10-05 14:57:15 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You don't need anyone to do it for you. All they do is negotiate your debts for you and collect a fee. You can do it yourself!
Call all of them and work out a payment plan and try to get your interest lowered or stopped.
Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.
You probably need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control. Take a sandwich for lunch. Cancel the gym membership.
Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.
Go to the library and get "The Total Money Makeover". Read it and follow it carefully.
Go check out Dave's website as well.
Yahoo is blocking the link for Dave's website for some reason. Guess they don't want people to use sound money methods?!?!?
It is www . dave ramsey . com without the spaces
2007-10-05 14:54:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Quick and easy? If your debt is substantial, it isn't going to be quick or easy - but you don't need outside help, just internal discipline.
2007-10-05 15:11:36 · answer #3 · answered by Judy 7 · 0⤊ 0⤋