Repayment plan to conquer debt
When you are in a difficult situation due to financial hazards, debt consolidation takes you a long way from the nightmares. Debt Consolidation leads you to a debt free life slowly and steadily, supporting you throughout. It not only solves your debt problems, but also guides you to restore your credit. It gives you a strong financial foothold, which seemed to be an impossible task at one point of time.
The procedure is very simple.
- Set a monthly amount.
- Pay all minimum amounts.
- Pay extra money towards the debt with the highest interest rate.
This method will ensure that you pay the least amount of interest and repay your debts as soon as possible. The easiest escape for paying the least amount of interest possible is to pay extra dollars towards the loan with the highest interest rate. It is quite obvious that you want that debt to be paid off as soon as you can. This loan is costing you the most each month. Debt consolidation care restructures your total amount and sets a fixed amount to be paid each month. This makes the payment much more affordable and eases your pressures gradually.
The problem with many people is that they only wish to repay the minimum payments. These minimum payments are configured to keep you paying that high interest rate for as long as possible. The strength behind the fixed total amount for each month is that you will have more money to pay towards another debt, as one debt is paid off. This is commonly known as the "snow-ball" effect. First, determine your ability to pay. If your total payments are more than you can afford, you are in trouble. Next you should make a commitment to stop getting into further debt as this will worsen your financial status.
You tend to get more vulnerable once you are a hunchback with debts. Avail debt consolidation and give yourself the time to relax, for your worries are now in safe hands. All you have to do is enroll yourself with www.debtconsolidationcare.com and you will have a debt counselor at your service round the clock.
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12-23-2009, 04:53 AM
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Join Date: Dec 2009
Posts: 9
Credits: 282
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Repayment plan to conquer debt
Anyone have information on the Dave Ramsey's Debt Snowball method advertised in television..?How does Dave Ramsey's Debt Snowball work..?
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12-23-2009, 05:16 AM
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Go to google and search for a snowball spreadsheet.Basically you list out your balances and interest rates. Then you develop a household budget you can live with.After that you would pay from highest interest to lowest interest or if you like instant results go from lowest balance to highest balance.
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Cajunbulldog Keeping an eye out for consumers. http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#809 http://www.ftc.gov/os/statutes/fcrajump.shtm http://www.debtconsolidationcare.com.../about216.html Use this letter to protect your rights under the FDCPA myfairdebt.com & myfaircredit.com-Good source of case law in forums.
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12-23-2009, 05:47 AM
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He also has a video posted on you tube.
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CLICK HERE To join my Social group, The Payday-Loan-Free Advocates! Online Complaints Ohio Attorney General Online complaints: Federal Trade Commission. Ohio Payday Loan Laws CLICK HERE to find a Creditor
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12-23-2009, 11:36 AM
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Debt Samaritan
Moderator Join Date: May 2007
Posts: 993
Credits: 12,196
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Dave Ramsey’s snowball method is simply listing your debts from smallest to largest. Make minimum payments on all debts but the smallest. Pay off debt as quickly as possible then move to the next debt on the list. That is his definition of the debt snowball plan. Keep in mind that he also teaches about budgeting, controlling spending and other items that go hand in hand with the debt snowball in order to save extra money to apply to the debt snowball. He does not believe in playing the interest rate game i.e. paying highest interest rate first and so on. He says mathematically it might make sense but psychologically it does not make sense. Basically one gets a greater sense of satisfaction as one pays of a debt and eliminates it from the pile more so than if one spends a long time working on a single large debt. In my opinion either method is fine as long as you are paying off debt.
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12-23-2009, 01:56 PM
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A spreadsheet was developed on a credit forum I visit that dumps all your data into it making it easier to see what you are paying out.
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Cajunbulldog Keeping an eye out for consumers. http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#809 http://www.ftc.gov/os/statutes/fcrajump.shtm http://www.debtconsolidationcare.com.../about216.html Use this letter to protect your rights under the FDCPA myfairdebt.com & myfaircredit.com-Good source of case law in forums.
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12-28-2009, 07:17 AM
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I started using this method,except I didn't know Dave Ramsey started it,years ago. After I came to these boards I knew I needed a plan to see some quick results,I would get discouraged in the past not seeing balances go down much.
I did start on my lowest balance debt, did extra work,scrimped and saved for extra money to add to this payment. As soon as that got paid off, I took that payment and added it to my next lowest payments' balance until it was paid--and so on.Seeing the balances and the debts getting lower and paid off, made me really look at our budget(as was suggested above) and start seeeing where I could cut a few dollars here and there, they do add up. It took me some time, but it took me time to get in the mess to begin with, and the end result was worth it. I also had to look at where my priorities were, because in my case, there were times I could have done without instead of charging it. Although, there were times I bought groceries and paid bills,too. Good Luck..keep us posted..karen __________________
As long as you are alive, there's always hope
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12-28-2009, 12:00 PM
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Join Date: Dec 2008
Posts: 1,429
Credits: 12,006
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i do have about 5,000 in credit card debt still (thanks to installing a furnace and such that i had no choice last year) but i found it much more rewarding to start at the lowest and work my way up. I have a list of things i need paid off from smallest to largest and as i pay them off i cross it off. this way it shows how much progress i have made. i even include the small things like our home owners insurance that only comes once a year its 400.00. and i purchased tires the other day on my tire account 550.00. as i pay each off i cross it off so that when i get discouraged i see i have paid off x amount of dollars worth of bills this year. and slowly im getting there.
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my blog about saving money during a recession, And my personal story about Provanta's debt settlement program and how it worked for my family
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12-28-2009, 05:29 PM
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Financial Peace University - Dave Ramsey - 13 week class teaches you about budgeting, debt snowball, bottom feeders - creditor and how to deal with them, 401k and how to invest in your future, pay for college for your kids, pay off mortgage early, etc. Its well worth the money!!! 1,000 emergency Fund is 1st step so that you don't have to use credit cards if you have an emergency! This website and Dave will get me debt free. I was just offered 50% at 60 days late from MBNA waiting for lower and I am doing a prorate with the others. When I free up this MBNA money and others this money will all go to the lowest credit card balance and continue until it is paid off and then I'll put all of that money on the next lowest balance. He has many tools on his website that will help also. Sell everything except the kids to get your emergency fund and then do the debt snowball. In your budget should be the 4 walls. Mortage or rent, food, electricity and water and transportation, anything left over goes towards creditors using the pro-rata plan which is a percentage of the miniumun payment due.
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12-28-2009, 05:32 PM
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Also when you are done your debt snowball then you save up for an emergency fund of 3-6 month of your budget, which is food, mortgage, etc. that way if your laid off you won't ever have to use credit cards again.
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12-29-2009, 09:54 PM
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agree "save" some pay off those smaller debts one by one and by all means do not pay a consolidation company to do that for you! Just more money it will cost you,,,you do not have to give anyone money to consolidate your debts,,,consolidation usually means saving money not spending more---pay off your small debts as soon as you can--but in meantime save some of the extra money you have as well---they can not suck blood out of a turnip!!!!!
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