|
Well, with this picture... I would do the following:
Start paying off one card by one card. If you have $300 for credit card payment, pay the minimum from each card and on one (the one with more credit) pay the remaining amount (so let's say you have $20 as minimum, on 5 of them, pay $20. 5 x $20 = 100. you have $200 more... pay $200 on the 6th one)
Minimum payment is a trick from the demon to kill you. You have high APRs and you are paying $10 or $15 a month... but you get a $13.46 financial charge... that means you've paid $1.54 that month for a $1000 credit card...)
By this way, maybe you will keep raising the debts with the 5 credit cards, but you are defeating the 6th one. When you are done with the 6th one, do not use it... so you can pay the $20 minimum to the first 4 ones and the 5th one will be $220. When you are done, the same, not using it. Will be the first 3 ones / $20 each = 60. $300 - $60 = $240 for the 4th one. Then when it's done $260 for the 3rd one. Then $280 for the 2nd one and finally $300 for the first one. Done.
Also, if you can avoid purchasing video games, going to the movies or other hobbies... better... spend that money on paying off your cards first.
When you are done, use only 10% - 15% of your total credit on each credit card. Then pay double or triple of your minimum payment a month. (as you won't have a lot of debt, the minimum will be likely $10-$20) So you will pay around $45 per credit card, $45 x 6 credit cards = $260. You will still saving $40 total on cc payments and you are paying triple of your minimum payment, and keeping low balances.... I like to pay to the main big companies (WaMu, Citi...) at least $100 a month.
Do this for a couple of years and enjoy a 750 credit score.
Good luck... long journey... so hard at the very beginning, but worth.
__________________
If you believe in me, there is nothing I can't do!! 
Last edited by Bahamut : 06-04-2008 at 09:16 PM.
|
Linear Mode
