What is the best way to pay off my 2 crerdit card and 1 auto loan bills?

Question

i want to know the best way to pay of my bills and save money.... i got 2 credit card which are at $1500, and $2500, and a auto loan at $10,000. .... i get paid $2500.. a month. ... . i wanna start saving , but these bills are holding me back. i need help.

Answer 1

Heres what you need to do:

Start carrying a list and write down everytime you purchase something. Even if its a .50 or $1 item write it down. Do this for a few weeks.

Now sit down with your paycheck, bills and that list. Do a budget figuring the minium payment on all your bills and see how much money you have left each month. Next, see which debt has the highest interest rate. pay any extra money to it while paying the minium on e verything else. Once it's paid off take the amount you where paying to the paid off debt and add it to your next highest accuring debt and keep doing that.

Now look at what you can cut out of your budget or downsize on. Things like taking lunch to work, making your d rinks and taking with you to work. make your morning coffee at home, cut the cell phone bill down, same with house phone and cable get rid of them or cut them down to the bear minium. Now, I would suggest selling your car and getting something for cash. I just did this and it now saves me $440 a month between the car payment and insurance. Even if you can get the amount you owe on the car, get a small loan to pay off the difference and sell it. If you h ave a extra room rent it out. You might want to look at picking up a second job too. It's amazing how 300-400 extra a month can help. Take all the money from the second job and pay it towards your debt.

I would suggest gettting a book by D ave Ramsey called "The complete money makeover". This will help you stay focused and teach you how to get out of debt. Once you are debt free and one day with alot of hard work you will be, remember how bad it feels nad never let yourself get in this position again. happy holidays and I wish you all the best. Trust me, follow this plan and it will work it has worked miracles for me over the last 3 mnths since I started doing it.

Answer 2

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Answer 3

You need to look at where you are spending your money. For a two week period, keep a written record of every penny you spend. You'll be amazed at how much money you are wasting. Based on this, set up categories of real expenses and assign a monthly or weekly dollar amount for these expenses.

From this you should be able to set up a budget. Initially, you should be pretty strict and put every penny you can squeeze out of your budget on the highest interest rate credit card, while paying the minimum on the rest. When the highest rate card is paid off, move to the next till they are all paid in full.

Answer 4

First, stop using the cards and pay cash for things you need - no superflous spending. It wouldn't hurt to set a little extra aside for emergencies, so you're not tempted to pull them out if something happens. Pay just the minimum on all the bills but the smallest - put everything extra, plus the minimum, that you can on the card with the 1500 balance. As soon as it's paid off, put all that amount as extra (on top of minimum payment) towards the card with 2500. When that's paid off, put all that as extra on the car. It's called a debt snowball, because it gains momentum (and the amount you are paying on each successive debt grows!). Then you can build up your savings.

Answer 5

First -- either put the cards away or cut them up. Start making larger than minimum payments on the card with the higher balance. Keep making at least minimum payments on the other card, and for heaven's sake, be on time every time. Pay on time every month on your car/truck.
Once the cards are paid off, take that money and stick it in a savings account and ignore it. Keep making your car payment, and increase the amount you pay/month.
Another thing to do is to make your larger-than-minimum payments and instruct that the overage has to go to the interest, not the principal.

Answer 6

In your case this site can be very helpful HTTP://HELP.CREDIT-SOLUTIONS.INFO

RE What is the best way to pay off my 2 crerdit card and 1 auto loan bills?

i want to know the best way to pay of my bills and save money.... i got 2 credit card which are at $1500, and $2500, and a auto loan at $10,000. .... i get paid $2500.. a month. ... . i wanna start saving , but these bills are holding me back. i need help.

Answer 7

You must make at least the minimum monthly payment on all. Beyond that, start with the highest interest rate loan (probably one of the credit cards) and put all available money into paying that one off first, then the next highest, etc.

Answer 8

This site is for comparing rates for you and free CREDITVAULT.NET