What is the best company consolidation debt out there today?
I have over $ 10,000 in card debt credit. I need to consider consolidation? I can afford the payments no problem, but in the long term, the interest can be more than it could have paid if a debt consolidation program. Does it make sense to you? Thanks for your time.
Please do not consolidate. It is not free, they will reduce your payments by increasing the amount of time until you are debt free, and will make a success in your credit score. There is a better way. A. They a garage sale and sell anything you no longer need or want. B. Get a part-time temporary job if you have one, get another. The holidays are coming and will many more temporary jobs. It is better not to have a fun year or two of a decade, no fun. Here's a plan that can help. If the plan work, the work plan for you: 1. Make a budget. That the budget a week before you pay. A budget is not a punishment! It is a tool that frees you from having to worry about money again. Put everything in your budget. Especially those annual, biannual or quarterly bills like car registration, insurance, etc. Give every dollar that is going to bring home the name of the place where it goes. Add an "emergency fund" to the category of your budget and save $ 25 until you have 1000-1250 dollars. Your emergency fund will help keep entering into new debt because of an emergency. If possible, establish a transfer directly to a savings account for your emergency fund. In this way it moves automatically and you do not even have to worry about it. You must reduce your expenses and live with less than you earn. 2.First get you current on all debts and make no more late payments. Stop using your credit cards immediately. Do not take more in debt. Cards Credit unions are like quicksand only the death is much slower. Make a list of all your debts in order of highest interest rate to lowest interest. Use cash only for spending from now. 3.Pay the minimum on all debts and then put your extra money to pay higher interest. After getting you paid, you put the money paid on debt # 1 (the minimum payment and additional payment) towards debt # 2. That will pay debt # 2 off faster. When that is paid, they get three payments on account of the card # 3 and you are paid very quickly. As an example: To start: Debt # 1 (highest interest): the minimum payment + extra payment Debt # 2 (average interest): minimum payment Debt # 3 (lowest interest): minimum payment Debt # 1: pay debt # 2: minimum payment Debt # 1 + minimum payment Debt # 2 + extra payment Debt # 3: minimum payment Debt # 1: pay debt # 2: pay off debt # 3: minimum payment from card # 1 + minimum payment Debt # 2 + minimum payment Debt # 3 + additional payment. Thus, get all paid on time and pay less interest. It will also help rebuild your credit because you no longer have any delay in the payments. This works no matter how many different debts you may have. 4. After getting all his debts paid, add to your emergency fund until you have 6-12 months of income saved. Put that money in an emergency fund of liquid money market fund or a Bank of America no-risk CD so that if you need money you can take it out without penalty. 5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a vacation, vacation, a big screen, or dinners, whatever goal you want. Remember to enjoy your life. 5b. When you have your emergency fund in place, start saving for retirement. Join the 401 (k) plan at work and contribute the maximum. Your employer probably matches at least part of their contribution, then why Why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for retirement now, probably will withdraw a millionaire. 5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Saving for a nicer car. In that way get the interest instead of paying the interest. You can and not as hard as you think. Just follow the plan.