newbie wants to ditch debt :)

n1nja

Hi everyone, newbie on here.

I have finally decided that I can no longer live with my debts as they are taking up too much of my life, and I am going to get rid of them as quickly a humanly possible. Reading some of the posts on heere has made me feel really positive about dealing with this. I currently owe about £20,000 on 4 credit cards.:(

I make a little more than the minimum payment each month on them, but feel I need to tackle this more head on now. Is it better to pay the minimum on three cards while attacking the 4th, or is it better to spread the payment over them all ?


I know that I will be coming into about £3000 soon and that will all be going onto relieveing some debt. I plan to make a bit of a diary out of this and look forward to recieving, as well as giving support.

Pleased to meet you all

katsu

hi n1nja,

Best thing to do is to list all cards in order of interest rates. Pay minimums on lowest rate 3 and put all spare cash on highest interest rate card.

This saves you most money in interest and gets you debt free quickest.

All the best

mildredalien

Hi there, it's generally accepted that it's best to tackle one debt at a time particularly if they have varying/high interest rates. Throw every spare penny at your highest interest debt while making minimum payments on the others, and then once that is paid off 'snowball' the amount you WERE paying into the next debt you want to tackle.

Good luck! If you want some more specific advice, feel free to throw up an SOA (statement of affairs).

wolveslass

I would say have a look at the following link. Use the snowball tool.

Here you enter your debts, the interest rates and how much you can afford to pay off each month. It then works out the snowball for you so that you pay as little interest as possible. I swear by it and love to see my debt free day getting closer!

http://www.whatsthecost.com/

Yum

Agree withe the above - pay the higher interest cards first. Are there any lifestyle changes you can make which could allow you to pay more than the minimum payment on these each month?

Well done for actually deciding to do something. This board is truly inspirational and you can turn your life around.

Good luck

n1nja

thanks for the welcome :0

wow that snowball calculator really opens your eyes!!

will post an soa and see whats what