Help Me Get Out Of Debt - 7 Tips To Success - 0 views

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  #1 Dirk Pruitt on 25 May 12

   

  You could divide the extra amount equally among every one of your loans, but unless you now have a very large amount available or only one or two loans, this can take the longest to pay off your debt.
  
  The next two are almost as bad, settling the highest amount first or paying the lowest rate first.
  
  The two remaining options are the ones most discussed in clearing up debt. Paying highest rate first and paying the lowest amount first.
  
  There is a small percentage difference between these last two options and it depends on how your debt is distributed and how much you must apply as to which one gets the job done first. Nevertheless, we are only talking about a few months difference between the a couple.
  
  Paying the greatest interest rate loans off first:
  
  If you happen to listen to most, any sort of talk show on funds, this can be the advice they will provide.
  
  Let's look at someone with $100, 000 of debt not counting any home loans, say seven credit cards, two car payments and some other strange loan. Low interest rates range from 4% to 23%. As most of the payments go toward the interest, we will assume that this principal will only go down by the quality of the extra payment we can make.
  
  As each loan is repaid, people apply the available funds to another loan and so out.
  
  Here are the two examples i compared:
  
  Credit card debt
  
  Credit Amount Rate
  
  Card account #1 $10, 000 23% $242
  
  Card account #2 $3, 000 22% $70
  
  Card #3 $4, 000 21% $90
  
  Card #4 $5, 000 20% $108
  
  Card account #5 $2, 000 18% $40
  
  Card account #6 $1, 000 12% $15
  
  Card account #7 $20, 000 7% $217
  
  Vehicle #1 $27, 000 6% $270
  
  Car #2 $22, 000 5% $202
  
  Other $6, 000 4% $50
  
  Total Debt $100, 000
  
  Entire Monthly Payments $1, 303
  
  Case 1
  
  Credit Amount Rate
  
  Card account #1 $2, 000 23% $48
  
  Card account #2 $800 22% $19
  
  Card account #3 $1, 600 21% $36
  
  Card account #4 $3, 200 20% $69
  
  Card #5 $400 18% $8
  
  Card #6 $200 12% $3
  
  Card account #7 $12, 800 7% $139
  
  Car #1 $47, 000 6% $470
  
  Car #2 $25, 600 5% $235
  
  Other $6, 400 4% $53
  
  Comprehensive Debt $100, 000
  
  Comprehensive Monthly Payments $1, 080
  
  Case 2
  
  Interesting things happen once we apply different amounts month after month toward paying off the debt. I first assumed we had $100. 00 extra to apply and found that within Example 1, by settling the highest rate first may well take 217 months or 18 years to be free from debt. Examine this to paying your high amount first, thirty-three years and paying the bottom rate first, 29 years. Paying off the lowest amount first was 220 months or even 18 years. Your difference was only 2. a few months. In Example 2, by settling the highest rate first it would take 244 months and also 20 years to get out of debt. Examine this to paying your high amount first, 1 out of 3 years and paying the lowest rate first, thirty-one years. Paying off the lowest amount primary was 254 months. Business Debt Consolidation, Visit Our Website

   

  <div class="cArrow"> </div><div class="cContentInner">You could divide the extra amount equally among every one of your loans, but unless you now have a very large amount available or only one or two loans, this can take the longest to pay off your debt. <br /> <br /> The next two are almost as bad, settling the highest amount first or paying the lowest rate first. <br /> <br /> The two remaining options are the ones most discussed in clearing up debt. Paying highest rate first and paying the lowest amount first. <br /> <br /> There is a small percentage difference between these last two options and it depends on how your debt is distributed and how much you must apply as to which one gets the job done first. Nevertheless, we are only talking about a few months difference between the a couple. <br /> <br /> <b> Paying the greatest interest rate loans off first: </b> <br /> <br /> If you happen to listen to most, any sort of talk show on funds, this can be the advice they will provide. <br /> <br /> Let's look at someone with $100, 000 of debt not counting any home loans, say seven credit cards, two car payments and some other strange loan. Low interest rates range from 4% to 23%. As most of the payments go toward the interest, we will assume that this principal will only go down by the quality of the extra payment we can make. <br /> <br /> As each loan is repaid, people apply the available funds to another loan and so out. <br /> <br /> Here are the two examples i compared: <br /> <br /> Credit card debt<br /> <br /> Credit Amount Rate<br /> <br /> Card account #1 $10, 000 23% $242<br /> <br /> Card account #2 $3, 000 22% $70<br /> <br /> Card #3 $4, 000 21% $90<br /> <br /> Card #4 $5, 000 20% $108<br /> <br /> Card account #5 $2, 000 18% $40<br /> <br /> Card account #6 $1, 000 12% $15<br /> <br /> Card account #7 $20, 000 7% $217<br /> <br /> Vehicle #1 $27, 000 6% $270<br /> <br /> Car #2 $22, 000 5% $202<br /> <br /> Other $6, 000 4% $50<br /> <br /> Total Debt $100, 000<br /> <br /> Entire Monthly Payments $1, 303 <br /> <br /> Case 1 <br /> <br /> Credit Amount Rate<br /> <br /> Card account #1 $2, 000 23% $48<br /> <br /> Card account #2 $800 22% $19<br /> <br /> Card account #3 $1, 600 21% $36<br /> <br /> Card account #4 $3, 200 20% $69<br /> <br /> Card #5 $400 18% $8<br /> <br /> Card #6 $200 12% $3<br /> <br /> Card account #7 $12, 800 7% $139<br /> <br /> Car #1 $47, 000 6% $470<br /> <br /> Car #2 $25, 600 5% $235<br /> <br /> Other $6, 400 4% $53<br /> <br /> Comprehensive Debt $100, 000<br /> <br /> Comprehensive Monthly Payments $1, 080 <br /> <br /> Case 2 <br /> <br /> Interesting things happen once we apply different amounts month after month toward paying off the debt. I first assumed we had $100. 00 extra to apply and found that within Example 1, by settling the highest rate first may well take 217 months or 18 years to be free from debt. Examine this to paying your high amount first, thirty-three years and paying the bottom rate first, 29 years. Paying off the lowest amount first was 220 months or even 18 years. Your difference was only 2. a few months. In Example 2, by settling the highest rate first it would take 244 months and also 20 years to get out of debt. Examine this to paying your high amount first, 1 out of 3 years and paying the lowest rate first, thirty-one years. Paying off the lowest amount primary was 254 months. <a rel="nofollow" href="http://expert-debt-consolidation.com">Business Debt Consolidation</a>, <a rel="nofollow" href="http://expert-debt-consolidation.com/blog/debt-consolidation-management/">Visit Our Website</a></div>

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