I have a lot of debt?

Question

I have so much spread here and there (maybe totaling $3,000.00) and I feel overwhelmed with where to start and how to get it down. What are some helpful tips in making this problem disappear? Is there a company I can call and give all my info to and they can help me get it down? What can I do?

Answer 1

If you want to do debt consolidation. If you have time, you can sit down and do it yourself. It will save you interest from getting a loan.

First I would write down all the bills I have, how much is owed for each and what the monthly amount you have to pay down..

Then write down how much money you bring in every two weeks and monthly.

Then write down when each bill is due on every month.

Now decide how long you want to pay each one off.

(This is just advice, not meant as professional help). Hope this helps

Answer 2

Sit down and make a list - list out who the creditor is, what the current balance is, interest rate, minimum payment and due date.  Now there are different schools of thought on how to pay these down.  You can:

1.  Make min pymts to all but the 1 with the highest interest rate - pay all you can on this one until it is 0.  Then take that monthly payment amount - add it to the min for the next highest and pay that off... and so on until all are 0..

2.  Take the one with the smallest balance - dump all the money you can to pay it off (while making mins on the others) and work you way up by balances...

Some people prefer #2 because the see the 0 balance on the smaller accounts but my personal opinion is #1 makes the most fiscal sense.