I have debt that is difficult for me to manage month to month, but I think I finally have it under control where I can play minimum payments.
Recently, I had an unfortunate, minor incident which gave me money via the insurance. So instead of using the money to replace the materialistic things that were taken, I would like to put it toward my debts.
What is the best way to use this money? I know there are systems out there, like snowballing, etc. But I am taking about a one time bulk payment that will help me get a jumpstart on debt relief.
I have multiple credit cards, some with high interest rates and high balances. Others are with medium sized balances and fixed payments (because they were cards that I opened when I was trying to fix my credit).
What is the best way to go about this? What card should I pay off? Or just make a big payment on one card?
For example, I have a CC that is fixed at $15 per month but the balance is low enough that I can pay it off in full. Another card I have has a high balance, I can't pay it off in full and making a large payment might make my monthly payments go down about $20 per month.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.