i am a college student living on my own and i have credit card debt that isn’t that substantial (one card is $450, the other $285), but because i am paying my own way thru school and have other monetary obligations, it is still stressing me out trying to pay it down. can someone give me some suggestions on the quickest and most effective way to help pay those bills off before the increase (by the way: i already have two jobs, so i am working)
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{ 10 comments… read them below or add one }
Try to get a card with a low introductory offer, or one that will be low and stay low, with an available credit limit of $1000.
combine the two into one and then make smaller payments without the high interest. Then cut them up, but save one of the lowest and best for your emergencies.
dave ramsey!
save up 500 dollars
pay off credit crad debt from lowest to highest amount. If something happens like an “emergency”, DO NOT use the credit card! use your saving and keep paying off the debt!
The way that makes the most sense mathematically is to pay off the card with the highest interest first, then pay off the other card. However, money is more than just mathematics… otherwise, every mathematician would be a millionaire!
Instead, the way we spend or save our money is heavily influenced by psychology. So, the method that is most effective for many people is to pay off the smaller debts first and larger debts later, because there is a psychological boost when you pay off a debt, which motivates you to continue tackling debt. This is called the “debt snowball” technique. I highly recommend the blog “get rich slowly”, especially the entries from March 28, 2008 and February 5th, 2008. The blog is at http://getrichslowly.org/blog/
Here are some things you can do:
Quit using the credit cards.
Try to get a loan with a lower interest rate that can pay off both credit cards. (Pay off that one loan)
Pay more than the minimum payment on the credit cards.
Use your stimulas packet from the IRS to pay off your credit cards. (If your single and filed taxes for 07-08, you may qualify to get back $600.00)
I would recommend doing alot of research on this subject, before you make a move you can find some info herehttp://www.studentconsolidation411.info/
How much are you paying per month on each card? Just the minimum, or a little extra?
Pick the card with the higher APR, and pay as much as you can each month on that card (put the other card on minimum payments). Once that card is paid off, take the money you had been putting towards it and roll it over to your other card.
CUT THE CARDS UP. If you are trying to get out from under credit card debt, the last thing you need is the temptation to add to that debt. That’s like trying to bail out a rowboat with a sieve.
call them immediately as any response is better then none to them
so once you get them on the line ask them for a deal
tell them you can pay it off but not if they are going to keep slapping you with fees
now when my daughter did this they cut the bill down by 30%
so if there are any fees above what you charged try negotiating that like a payoff amount and time
but schedule it around your pay dates not dates they set
hope this helps
good luck!!
Don’t get a loan and don’t ask for a settlement. The amount of debt you have is negligible.
Assuming you do like any “normal” college person does, stop it for a few months to pay them down. With 2 jobs, you should have those paid down and out with in 3-4 months. Even with paying your own way.
Also look for ways of reducing your out going money until they are paid off. Once they are, don’t touch them and let them sit there. Better yet, put them in a block of ice.
With how small the debts are, the effective way is to just pay the 285 one off with your next check (or half of it) and then apply that to the 450 one. With these, APR is meaningless. It may cost you about $5 more one way than the other.
I would call the crediters and ask for a settlement. My husband did that and they cut the amount in half, of course he had to pay that half then.
Good luck
stop eating out and going to movies for a few months