What is best best way to get out of credit card debt?

Question

I have 15k in credit card debt and i want to get rid of soon. I dont want to do go thru debt consolidation companys because it will have a negative affect on my credit. how should i start? payoff the ones with high interest first or what?

Answer 1

Best Answer - Chosen by Voters

Try http://personal-financial-help.solutions… they aren't that bad (7% for me) and definitely quick.
The Idea is to find a loan at less interests than you pay now, and fixed interests.
Credit cards can have high interests so it shouldn't be difficult to beat them, depending on your credit score.

Answer 2

1) stop using the cards
2) Yes, pay off the ones with the highest interest first.

Answer 3

Stop using them and make the largest payments as soon as possible. Then, only charge what you can pay off in full at the end of the month.

Answer 4

First of all, forget Dave Ramsay. People will recommend him, but his method takes longer and will cost you more money in the long run. It's for people with no willpower.

Okay, you have 15K in credit card debt. I am assuming that it is all on multiple cards. Here is what you need to do.

You get a piece of paper. You write all the debts down, including interest rates.

The debt with the highest interest rate goes at the top. Rank them in order of highest interest rate to lowest interest rate. Don't worry about amounts. Focus on the interest rate.

Now, you need to pay minimum repayments on ALL the debts. Any extra you have in excess of the minimum repayments needs to go on the debt with the highest interest rate. It is costing you the most per dollar owed. You need to clear that debt first, and once it is clear, make the second one on the list (second highest interest rate) the priority.

This will enable you to clear the debts in the fastest possible time, and pay the least amount in interest. It is mathematically the most efficient way of paying down your debts.

I suggest when you're organising this that if you can, you shuffle some of the debt on the higher rate cards onto cards with lower rates. That will lower your overall interest rate burden, and give you a head start.

Pay whatever you can on those debts. Even an extra $2 will make a difference.

Try this for a few months. Once you get the ball rolling, you'll probably find that the debt is more manageable.

Once you're debt free, take some of the money from your budget that you would normally pay on the debts, and put it in a savings account. Get your boss to direct debit it into an account for you on payday. That way, you're saving automatically and you don't have to think about it. You just live on the leftovers. You'll get used to it in a few weeks, and then, when you would normally resort to credit, you'll have savings to use instead.

Good luck. Stay motivated. You can do it. You're worth it. Being debt free is awesome.

Answer 5

It's fairly simple, and as long as you're motivated (which it sounds like you are), you can do it!

Pay off the highest interest rate first, while paying minimums on other cards.

Sell on ebay, get a second job, and make $$$.

LOTS OF $$$ = Getting out of debt

Good luck!!