Paying off debt

[ponyfitness]

So over the past two years I have managed to reduce my debt from $26000 to about $11000 (paid off car, cancelled two credit cards, etc.). I only have two pieces left, both credit cards.

Will companies automatically give you lower interest if you call and ask for it? I have heard this but if anyone has firsthand knowledge I would appreciate it.

Also, is it better to pay both off evenly or put more money on one at a time to reduce interest paid? They both have roughly the same balance and interest rate.

Feel free to share your debt stories here. Of course I'm working so hard to do this so I can get a mortgage and immediately put myself back in but whatever.

 

[Razorguns]

So over the past two years I have managed to reduce my debt from $26000 to about $11000 (paid off car, cancelled two credit cards, etc.). I only have two pieces left, both credit cards.

Will companies automatically give you lower interest if you call and ask for it? I have heard this but if anyone has firsthand knowledge I would appreciate it.

Also, is it better to pay both off evenly or put more money on one at a time to reduce interest paid? They both have roughly the same balance and interest rate.

Feel free to share your debt stories here. Of course I'm working so hard to do this so I can get a mortgage and immediately put myself back in but whatever.

My feelings on debt are pretty universally known.

Up to you. I would focus on savings, family, my immediate expenses, shred the cards and tell 'em to shove it.

Credit is a great scam. Our country is falling to it's knees cuz of it. I'm not sure why you wanna pay it Wall ST guys don't pay their debt.

r

 

[75th]

Call your card company and say you have a 0% balance transfer offer from another company. If your credit score and payment history is decent they may lower your rate a few points.

 

[UA_Iron]

It never hurts to try.

If they have roughly the same interest rate and balance then paying off either before the other isn't better - its all the same.

FICO scores are kind of mysterious, I believe it is better to have lower than a certain % utilization on each card for your score.

 

[UA_Iron]

If you're looking to shave down your debt, the "snowflake" method helps you relentlessly whittle your debt away with prioritized micro-payments. Photo by active metabolite.

What is snowflaking? First a point of reference. "Snowballing" is a popular method of paying off debt championed by financial adviser Dave Ramsey, where the payments from debts you've finished paying off are rolling into the payments for the next debt on your list, creating an ever-growing pool of money to rapidly pay down debt. Many people have found the snowball method effective at helping them get out from overwhelming debt and get a handle on their personal finances.

The snowflake method is a twist on the snowball method of debt repayment. In addition to ranking and downhill-paying your debts, you use micro-payments to accelerate the pay off. Every time you score a little extra money from anywhere—selling something on Craigslist, extra money from a side job, quarterly bonus at work, money left over in your budget at the end of the month—you immediately pay a little extra on the debt at the top of your list.

The debt snowflake method serves both a psychological and financial purpose. On the mental level, it encourages you to always be looking out for extra money and opportunities to pay down your debt and, by extension, curb expenses that prevent you from doing so. On the financial side of things, it makes sure that money freely floating outside your budget gets put to use immediately, and the frequent payments decrease the penalizing interest amounts.

 

[miplank]

If you're looking to shave down your debt, the "snowflake" method helps you relentlessly whittle your debt away with prioritized micro-payments. Photo by active metabolite.
What is snowflaking? First a point of reference. "Snowballing" is a popular method of paying off debt championed by financial adviser Dave Ramsey, where the payments from debts you've finished paying off are rolling into the payments for the next debt on your list, creating an ever-growing pool of money to rapidly pay down debt. Many people have found the snowball method effective at helping them get out from overwhelming debt and get a handle on their personal finances.

The snowflake method is a twist on the snowball method of debt repayment. In addition to ranking and downhill-paying your debts, you use micro-payments to accelerate the pay off. Every time you score a little extra money from anywhere—selling something on Craigslist, extra money from a side job, quarterly bonus at work, money left over in your budget at the end of the month—you immediately pay a little extra on the debt at the top of your list.

The debt snowflake method serves both a psychological and financial purpose. On the mental level, it encourages you to always be looking out for extra money and opportunities to pay down your debt and, by extension, curb expenses that prevent you from doing so. On the financial side of things, it makes sure that money freely floating outside your budget gets put to use immediately, and the frequent payments decrease the penalizing interest amounts.

where is the photo?

 

[tha joker]

Razorguns probably has the right idea. Sorry if I go off on a bit of a rant, credit card companies are the scourge of mankind, right up their with car salesman. They spend a ton of time and money convincing you they are giving you the best deal. They will eat their own young to get you to use their cards. Credit cards are good for one thing only, emergencies. Shred the cards until you know you have developed some fiscal responsibility. If you bug the card companies enough, this should work with you. In the current state of the economy, even the credit card companies understand everyone is broke. They would rather get something from you than nothing.

 

[docoptimus]

If you can't lower your cc interest rate, get a line of credit with a lower interest rate, pay off the credit cards, then pay off the line of credit.

 

[Smurfy]

i took out a loan at the bank to pay off my CC debt back in the day.