What is the min. amount of credit card debt should have to do debt consolidation and this is a good idea?
I wanted to do debt consolidation credit card but I am skeptical whether this is a good idea with the economy. I am far from my credit card accounts and the only reason I can not afford them, because now is the minimum payment has gone through the roof. The debt all together I have is less than 2,000.
Please do not consolidate. It is not free, lower their payments by increasing the amount of time until you are debt free, and you'll have a hit on your credit score. Or negotiate its debt until after her not to pay for a time to add another hit to their credit score. The blow to your credit score is very bad. There is a better way. A. A garage sale and sell anything you no longer need or want. B. Get a temporary part-time work, if you have one, get another. Here is a plan that can help. If you work the plan, the plan of work for you: 1. Make a budget. Make the budget a week before they are paid. A budget is not a punishment! It is a tool will free you from having to worry about money again. Put everything in your budget. Above all the bills year, semester, quarterly or vehicle registration insurance, etc. Give every dollar that is going to bring home the name of where it goes. Add an emergency fund 'category' to budget and save $ 25 up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If possible, establish a direct transfer to an account savings for emergency fund. In this way it moves automatically and you do not even have to worry about it. You have to cut expenses and live on less than you earn. 2.First Catch up with you all the debts and make no more late payments. Stop using your credit cards immediately. Do not take more debt. Credit Cards are like quicksand only the death is much slower. Make a list of all your debts in order of higher 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 the highest interest first. After obtaining a worthwhile, put the money paid on debt # 1 (the minimum payment and extra payment) towards debt # 2. That will pay debt # 2 off faster. When that is paid, it becomes three payments of card # 3 and that you will pay very quickly. For example: To start: Debt # 1 (plus interest): minimum payment + debt additional payment # 2 (average interest): minimum payment Debt # 3 (lowest interest): minimum payment Debt # 1: Debt # 2: minimum debt # 1 + minimum payment Debt # 2 + extra payment of debts paid # 3: minimum payment Debt # 1: pay debt # 2: paid the debt # 3: Minimum payment card # 1 + minimum payment Debt # 2 + minimum payment Debt # 3 + additional payment. In this way, will bear fruit, in time, and pay no interest. It will also help rebuild your credit because you no longer have any late payments. This works no matter how many different debts you may have. 4. After receiving all your debts paid off, add to your emergency fund until you have 6-12 months of income saved. Put that money funds emergency in a liquid money market fund or a Bank of America no-risk CD so if you need the money can be done without penalty. 5a. When you have your emergency fund in place, add a category for "fun" budget. Save for a holiday, vacation, screen large, or dinners out, 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 and contribute work to the fullest. Your employer probably matches at least part of their contribution, why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for retirement now, you probably will retire a millionaire. 5c. When your fund emergency in place, start saving for your next vehicle. Only buy cars, or other things that depreciate, with cash. Save up to a better car. That way to earn interest instead of paying the interest. You can do it and is not as difficult as you think. Just follow the plan
Credit & Debt Consolidation : Raise Credit Score
