Paying off debt!!

[twentie4hrs]

I have not seen another spot for this so I thought I would start a new thread.

What are some of the methods people have used to pay off debt.
If you have Credit Cards, Cars etc... Which should you pay off first?

Are there any free sites that help with this agenda?

[springles]

I have not seen another spot for this so I thought I would start a new thread.

What are some of the methods people have used to pay off debt.
If you have Credit Cards, Cars etc... Which should you pay off first?

Are there any free sites that help with this agenda?

I think generally you want to pay off your revolving credit before your installment credit (while of course making your installment opayments). 

There are sites like Mint.com that provide tips on how to save money and pay off debt but I find that those sites are too general and have the same unhelpful tips over and over.  Paying off debt is a very individual thing and I think the thing that would help best is having some sort of debt counselor.  But that isnt free and I am not sure that it is always a good thing to spend money on.  Make yourself a plan, including what you owe and what income you have and try to figure out where you can cut costs and pay back some debt. 

[AsherO]

Pay off highest rates first (while making minimum payments on all your accounts).

[twentie4hrs]

Pay off highest rates first (while making minimum payments on all your accounts).

Pay off high interest rates first?
Does the $ amount matter or just the rate?

[elikay]

Say you have 1000 dollars available to pay down debt, and you owe 4000 dollars at 10% and 100 dollars at 20% then 100 should go to the 20% and the rest to the 10 %.

[twentie4hrs]

ok thanks..
What about owing $4000.00 on both and having $1000 available to pay off something..should you pay 500 towards the 10% and 500 towards the 20%?

If I am trying to refi my house...do you know if paying off a  car or credit card is more important?

[AsherO]

ok thanks..
What about owing $4000.00 on both and having $1000 available to pay off something..should you pay 500 towards the 10% and 500 towards the 20%?

If I am trying to refi my house...do you know if paying off a  car or credit card is more important?

Make the minimum payments on everything, then put the rest towards the highest rate, this will get you out of debt the quickest.

[springles]

Of course make the minimum payments on all debt and the extra $ should go to highest rates first.  But in terms of your credit it is better to owe on installment credit lines like a mortgage then revolving credit like a credit card.  Usually the revolving lines will have higher rates anyway.

[twentie4hrs]

is a car payment and installment or revolving?

[AsherO]

is a car payment and installment or revolving?

Should be installment, revolving means credit card.

[yare]

Make the minimum payments on everything, then put the rest towards the highest rate, this will get you out of debt the quickest.

i believe that it's better for your credit score if you make payments that are higher than the minimum payment, even $1 more.  (for credit cards anyway, and i would assume for other debt as well)

[elikay]

I'm not sure about that, all that shows on the CR is paid as agreed.

[AsherO]

i believe that it's better for your credit score if you make payments that are higher than the minimum payment, even $1 more.  (for credit cards anyway, and i would assume for other debt as well)

Please cite your source? What's the logic behind this.

I'm not sure about that, all that shows on the CR is paid as agreed.

+1

[Gman]

Search " Dave Ramsey "  follow is advice, it works!

the main problem we have is that we spend way above our pay checks. i manage to lower my expences by keeping is  advice 

[Dan]

Search " Dave Ramsey "  follow is advice, it works!

the main problem we have is that we spend way above our pay checks. i manage to lower my expences by keeping is  advice 

Dave Ramsey is an idiot.  Any idiot knows not to spend more that what you have, sometimes that's not possible unfortunately.
But to advocate using a debit card over a credit card while throwing away valuable fraud proctection, extended warranties, and of course miles, is utter foolishness. 
Unless you have absolutely no self-control.  As we all all human we have a brain that should rule over our hearts-that's what differentiates us from animals, and should provide some level of self-control...
/Rant.

[Bh101]

Dave Ramsey is an idiot.  Any idiot knows not to spend more that what you have, sometimes that's not possible unfortunately.
But to advocate using a debit card over a credit card while throwing away valuable fraud proctection, extended warranties, and of course miles, is utter foolishness. 
Unless you have absolutely no self-control.  As we all all human we have a brain that should rule over our hearts-that's what differentiates us from animals, and should provide some level of self-control...
/Rant.

wow Dan, that was pretty harsh and quite blunt especially to a newbie , i guess wat this guy said (dave) was really dumb

[Gman]

I know we should have Moach Shalit a lalev! but not every one can control  himself, every one should custom size is own program read many books on this subject etc, some people can pay their CC on time, some people not and they end up with $$$$ in debt but with a lot of miles! i like is idea of paying the smallest cc first, to have an emergency account etc. millions of people lost to the cc game, not to many people can beat the system.

[Dan]

wow Dan, that was pretty harsh and quite blunt especially to a newbie , i guess wat this guy said (dave) was really dumb

Perhaps, but the subject has been hashed over before on DDF.  The stuff that Ramsey spews is ridiculous.

not to many people can beat the system.

I would guess that 99% of DDF members beat the system.