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Personal Finances / Credit Cards and Consumer Debt

URL:  http://boards.fool.com/the-first-thing-to-do-is-obviously-to-stop-sliding-17280945.aspx

Subject:  Re: Unemployed and in Debt Date:  5/28/2002  2:50 PM
Author:  snerge Number:  128201 of 308881

The first thing to do is obviously to stop sliding further down into debt.

Step one is obviously to stop using those credit cards.

Step two I would say stop using your your savings account to pay for your credit card payment minimums! You need that as your efund for things like any car problems or rent problems or other emergencies. Let's say you deplete your savings accounts paying off your minimums and you still don't have a new job. Then you might end up going into default on those cards AND you won't have any money for your actual daily needs or health insurance. One hospital stay could easily double your current debt.

Step three would be to scrimp and save and work hard. I know you know this already but let me tell you it is much better to be 23 and struggling to pay off debt than 30 and struggling to pay off debt.

Snerge
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