Financial Information
What are some solutions of credit card debt?
Question : What are some solutions of credit card debt?
forgot to mention this is for a high school research paper..i am need some more info.
credit card debt solutions
Best answer:
Answer by Rebecca
Pay it off by paying absolute minimums on everything but one card and pay every dime you can get your hands on on that card.
Get a second and third job and put every dime to the debt.
File BK if it is insurmountable.
Cut out everything including cell phones, cable, internet service etc until you get things going your way again.
Good luck it CAN be done.
Pay off high-interest debts first. It’s always a good idea to pay off the debt with the highest interest rate first. The higher the interest rate, the more interest that will accrue. With an APR of 30 percent it takes only three years before you wind up paying more than twice what you originally owed. Determine which credit cards or debts are costing you the most interest, and work double-time at paying them off first. Remember, the two-fisted monster of compound interest works in your favor when you’re saving money, not when you’re borrowing it.
After your plastic, next in payoff pecking order should be your loans, says Ken Clark, a certified financial planner and author of the “Complete Idiot’s Guide to Getting Out of Debt” , specifically your mortgage, car, or student loans. “These companies are the most aggressive when it comes to reporting missing or late payments to the credit bureaus.” And, he adds — saving utility and medical bills for last is not a bad way to go. “These kinds of companies very rarely report late payments in a way that will hurt your credit score.”