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Posted by: Goonhilda on 2009-11-05, 00:17:20
You have not really given us enough information to give you useful answers, but I'll have a go. If you have multiple debts, you need to write them all down, including the amount owing, and the interest rate. Put the highest interest rate debt at the top, then the second highest, then the next highest, and so on, til you get to the last, lowest interest rate debt. This will allow you to see exactly where you are debt wise. IGNORE THE AMOUNTS. Focus on the INTEREST RATE. The interest rate is the most important piece of information when you are repaying a debt. A small debt with a big rate will often cost you far more in interest than a big debt with a small rate. Pay minimum repayments on all your debts, and put your extra money on the debt with the highest interest rate. That is your priority. You must clear the debts in the order of the highest interest rate debt first, then the second highest, then the third highest, and so on. That will use the least amount of money and get you out of debt the fastest. You need to make extra repayments on the debt to get it under control. I suggest selling some stuff that you own (sell it cheap on Ebay, for example, and then use the money to make bulk payments to get that debt down) and try to get a second job. I work two jobs. It's tough, but I'll have our house paid off in five years and save us over $100 000 just in interest by doing so. That is worth it. You should add more specific information about your debt problem to this question. Hopefully you'll get some really useful answers. |
