NOT paying big debts and using that to pay off small ones
Date: Fri, 09/12/2008 - 11:38
I was wondering if the following strategy works, only if you want to settle later:
Stop making payments on at least two of the biggest credit cards we currently have. In other words, the ones with the highest monthly payments. Let's say for example this is a total of $500. Now, every month things are so tight, so we keep $200 of this money to get by. The other $300 starts paying off credit cards with the lowest amount left on them. Once that is paid off, next, we move on to the next card, and the next. Each time we finish off a card several things happen. We free up that card for emergencies, more cash is added to this $300 to tackle the next debt, and it actually helps our credit score because we are paying more than what is due on the card.
The only issues are harassing phone calls and the huge fees that will be added. But if I try to settle later, wont this work?
Stop making payments on at least two of the biggest credit cards we currently have. In other words, the ones with the highest monthly payments. Let's say for example this is a total of $500. Now, every month things are so tight, so we keep $200 of this money to get by. The other $300 starts paying off credit cards with the lowest amount left on them. Once that is paid off, next, we move on to the next card, and the next. Each time we finish off a card several things happen. We free up that card for emergencies, more cash is added to this $300 to tackle the next debt, and it actually helps our credit score because we are paying more than what is due on the card.
The only issues are harassing phone calls and the huge fees that will be added. But if I try to settle later, wont this work?
Everything seems fine but I want to point out only one thing. If
Everything seems fine but I want to point out only one thing. If you really want to do debt settlement in you bigger debts then let me tell you that it'll hamper your credit significantly (near about 200 points will go down). Why don't you give a try to other debt solutions?
You can go through the following article which will guide you to become debt free: -
get out of debt - 4 Keys and 3 simple steps for it
