I owe 9,264 dollars in total debt?

Question

That is was my experian credit report says my total debt is I have 7,000 saved up but I am totally lost on who to start paying it seems like the same accounts over and over what can i do

Answer 1

I know that you have $7000 saved up and that is very good.  But you should keep $1000 of that as an emergency fund before you pay anybody.  You never know when something will happen and you don't want to get further in debt.  As far as your outstanding debts, it is great that you want to pay them off and get out of the quicksand.  The first thing to do is to make a list of all of your debts and put them in order of highest interest to lowest interest.  If two have the same interest rate, put the one with the smallest amount first.  Now you know the order to pay them in.  Start by adding up all of the minimum payments for the month.  Set that money aside from you $6000.  See what you have left and then, starting from the top of your list see how many of the debts you can pay off in full.  You will have debts left over (about $3200 worth)  but make the minimum payments, at least, on ALL of them.  Next month when you pay your bills, you will have several of your debts at the top already crossed off (doesn't that feel wonderful?) so you just start with the next debt in line.

To start :

Debt #1 (highest interest): minimum payment+ extra payment

Debt #2 (middle interest): minimum payment

Debt #3(lowest interest): minimum payment

Debt #1: paid off

Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment

Debt #3: minimum payment

Debt #1: paid off

Debt #2: paid off

Debt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.

Debt #1:Paid off

Debt #2:Paid off

Debt #3:Paid off

Congratulations you're done.

You can do this with any number of debts.  Just write up your list  and start from there.



It won't take you nearly as long as yopu think and you will be debt free.

Answer 2

Wow!

Answer 3

ok, sweet, so you know exactly where you are.....

now pay off the higher interest rate debts first.......

maybe some are 'interest free' for a certain period giving you a little extra time (care though, as these might be high % when free period is over)

and try not to spend beyond your means, it's a bit of a waste giving banks your hard earned dollars via paying interest...

Answer 4

It probably is the same debts Call them and ask them to offer you a settlement and complete closure. You probably have more than enough saved

Answer 5

If you are finding difficulty in managing your debts you can go for a debt consolidation program. They can help you managing your debts by provide an affordable debt management plan.

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference