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Author: JoelErika Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308568  
Subject: Re: how to get out of debt? Date: 3/19/1999 10:40 AM
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First of all, I congratulate you on asking the question. I know ALOT of people who have tons of credit card debt. I have helped many people get out of it. I could do a free financial analysis for you if you are in my area...?

Do you rent or own? Do you have a car payment? You need to think about a lot of things before you make any major decisions.

1st: Cut up ALL your credit cards but one.

2nd: Transfer all the debt that you can to low interest cards - you can check out low interest cards at www.cardsmart.com.

3rd: STOP USING CREDIT CARDS! It takes 19 years to pay off a $2000 credit card if you pay the minimum balance at 18%! If you see a $125 sweater on sale for $25 and you buy it on credit and pay the minimum balance, you would have been better off paying $125 in cash!

4th: If you have a high car payment, and it is up in 2 years or less, and you plan on keeping the car for many years, you may be better off paying off the car quicker - and then using ALL the payment to pay off your credit cards. ie: Your payment is $300/mo. Pay $350 a month if you can. When your car is paid off, apply the ENTIRE $350 a month to your cards.

5th: Do you own a house? Can you get an equity loan? Don't think you can not get a loan just because you have debt. The bank will pay off your debt with the loan. You will not see any of the money, but instead of paying say 5 credit cards - $600 a month, you can pay the bank one payment of $350 - and then apply the extra $250 towards other payments - car, morgage, etc.

6th: If you do not own a house, and you have lots of debt, you can sometimes get a personal loan for around 11% if your credit is good. BankBoston does personal loans. The only thing here is: You NEED to apply the extra money each month that you will have left over to other bills - DO NOT spend the extra money - or you will be back in the same position you are now.

E-mail me if you are interested in a free financial Anaylis (to get out of debt). I do not have much debt, but this analysis showed me how to pay off all my debt (including my mortgage) in 7 years!

Hope this helps - cut up those cards, pay off all your debt, and hopefully - it will be financially awarding for you later on in life! Good Luck! And, again, congratulations for asking these questions and addressing your money issues!!!
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