Tip 1. Stop spending!
It's obvious but surprisingly many people don't give it a try.
You can't spend yourself out of debt. You have to really get it on the deep level.
There are some expenses you have to make: mortgage or rent, credit card and other loan payments, utility bills, food and medicine. But you, ...
More and Comments »
|
Tip 2. Pay off highest interest first
Refinance or pay off highest interest debt first.
I don't care what it takes, but you have to deal with all high interest debt ASAP. Otherwise, those high APRs are taking away your hard earned money. If you can, get the lowest interest credit card you can get (preferably 0% APR) ...
More and Comments »
|
Tip 3. Spike your credit score
Increase your credit score before applying for a new card.
A month before applying for a new credit card, you could use money you saved (because you read Tip 1 and my savings tips) to pay off some credit card debt. You must try to get your balances to below 50% of available credit line on EACH ...
More and Comments »
|
Tip 4. If two cards have the same...
...APR, pay off the one with smaller balance first.
You always pay off highest APR card first - period. If two cards have the same APR and it's the highest APR cards you have, deal with the one with smaller balance first.
This has two advantages: it boosts your credit score, because you have ...
More and Comments »
|
Tip 5. Your monthly debt payments
Try keeping credit card balance below 50% of availale credit.
Credit score companies love when balances on accounts are below 50% of available credit limit. If you try to oblige that love of theirs you will be richly rewarded with higher credit score. Higher score means better deal on the next credit card, ...
More and Comments »
|
Tip 6. Last resort debt help
Let your 401K help you with your debt.
Some people hate the idea of touching 401K money. But I see no reason of suffering huge financial losses paying high interest on credit cards and other loans for the sake of good but not set in stone financial rule. I'm not ...
More and Comments »
|