What is the best way to pay all my debt and i don't make a lot of money?

Question

i am a collage student but i am in about 4thousand dollars worth of debt due to old credit cards. of course I don't make a lot of money so what is the best way to pay it all off quick? most debt consolidators wont help because i am not in enough debt. Please Help!!

Answer 1

I'm not sure what your interest rates are, but if you've been struggling or have been late they have probably gone up.

Step 1:  Call the credit card companies.

Look at your statements and call each individually.  When the representative comes on the line, you'll want to ask them about lowering your interest rate.   They will likely tell you no, or that they do not have the authority.

Ask to speak to a supervisor if need be, and explain your situation.  The bank supervisors will look over your account.  Have you always held a balance?  Do you still use your cards?  Basically - Have you been profitable.  If you have been paying atleast the minimums on your credit cards, you should be able to negotiate them down.

Also -  Are they charging you an annual fee?  Ask to have the fee waived.  At the minimum you should be able to get a few months where they don't charge it.  Then you can always call again and get it waived a second time.

Step 2:  Pay it Down or Consolidate?

If you have high interest rates, you might consider transfering the debt to a low interest credit card. You might try going to your actual bank (where your checking account is) and talking to them about a credit card to transfer your balances onto.

They alternatively may consider giving you a personal loan to pay off your credit cards.  (Just be sure to actually pay them off if you go this route!)

Not all of these solutions may work for you, I don't know your exact situation but these are all options that could potentially work.

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Finally if you decide to pay down your debt.    You first have to know the kind of person you are.  If you can stay commited, the best wa yto pay down debt is to select the card you have the highest interest rate on and pay it first.

Pay minimums on all of your other cards, and put all extra money towards the high interest rate card.   When you finish that card, go on to the next highest rate card.  Repeat until you are debt free.

If your higher interest rate cards are also your high balance cards, it can be harder though.  If you aren't sure you can stick to the plan, pay off your smaller cards first so you see small "victories" and hopefully it will keep you motivated.

In the end, you will save more money by paying high interest cards first and working your way down.    I hope that helps.

Answer 2

It isn't quick, but it is worth it.  Try Dave Ramsey.  He is excellent in helping people get out of debt, large or small!

You can sometimes find his book in resale shops.  

"Total Money Makeover" is his guide to getting out of debt!

Hope that helps!

Jessie

http://www.IamHome365.com

Answer 3

The best option for debt trouble is negotiating your debts with your credit companies to keep the payments from swallowing all of your income. Typically, you have to get a counseling agency to call on your behalf. If you try to work with them yourself, many of them will not cooperate with you because you are not enrolled in credit counseling. Try http://www.womenindebt.info. Good luck!

Answer 4

best way is to find a credit card with low interest so that can consolidate this yourself.  5.99 or lower with little or not transaction fee.  Let your credit cards know that you are looking to consolidate and the you are will to go with them if they can give you a good rate for transfers.  Good luck.

Answer 5

DaveRamsey.com   he has helped MILLIONS, he has a radio show, and a show on Fox.  His best book is Total MOney Makeover, but if you goto the old site listen to a few of his old shows in archive, you can simply print off budget forms and his babysteps to do this.  I did it and knocked out 50k in a year and a half.  Did not cost me anything to use his program, and a lot of people can give you tips on his plan because they have done it.

Answer 6

You don't need debt consolidation. You need a written budget.

Answer 7

if you WANT a consolidation for credit cards i suggest ACCc (american consumer credit counseling) they are a non-profit group and will plan an actual budget with you