Best way to get rid of high interest debt?
Date: Thu, 03/28/2019 - 05:24
Hello everyone!
My name is Paolo and I just joined the forum. I wanted to ask you what is the best way to deal with the debt I have (all credit cards).
Here's some background: I started a business a few years ago and did not receive a salary for a couple years, instead, I just put my living expenses on my cards - that is how I got the debt in the first place.
Now my business is starting to generate some income, which is enough to cover my living expenses plus about an extra $2000 per month (which I am now using to pay off the debt, starting from the higher interest credit card).
Here's some more information about the debt and my credit.
- Total Debt $57,000
- Average Interest Rate 18% (16k are at over 23% interest)
- Credit Score 560 (ONLY due to high utilization, and perhaps short history)
I made some calculations and it looks like I can pay off this debt in about 2 years using the extra $2000/mo, however, the interest is SUPER high and I am wondering if there is any better way to plan this.
Do you guys have any suggestions?
Thank you so much!
My name is Paolo and I just joined the forum. I wanted to ask you what is the best way to deal with the debt I have (all credit cards).
Here's some background: I started a business a few years ago and did not receive a salary for a couple years, instead, I just put my living expenses on my cards - that is how I got the debt in the first place.
Now my business is starting to generate some income, which is enough to cover my living expenses plus about an extra $2000 per month (which I am now using to pay off the debt, starting from the higher interest credit card).
Here's some more information about the debt and my credit.
- Total Debt $57,000
- Average Interest Rate 18% (16k are at over 23% interest)
- Credit Score 560 (ONLY due to high utilization, and perhaps short history)
I made some calculations and it looks like I can pay off this debt in about 2 years using the extra $2000/mo, however, the interest is SUPER high and I am wondering if there is any better way to plan this.
Do you guys have any suggestions?
Thank you so much!
There are lots of options
There are lots of options actually. You can settle your credit cards to lower your payoff amount. You can enroll in a debt settlement program to pay off debts within a year. Plus, this program can also help to waive off penalties and late fees. Read this article to know about debt settlement programs: https://www.debtconsolidationcare.com/debt-settlement.html