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Help with Debt Issue Please!!

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    #16
    I believe you will have to payoff the unsecured loan first over the CC. This assuming that at the due date of this loan all interest will be charged when not paid in full and that's a lot of money. Pay this off and deal with your CC later by paying them the minimum at least until you're more able.

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      #17
      For a first post, I think you nailed it adam_c.

      Now, I'd be very interested in finding a more logical way to choosing which to pay first.

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        #18
        I'd say LOC because of the ~735 in accrued interest and keep making min payments on the other.

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          #19
          loc first due to the accrued intrest

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            #20
            Originally posted by hboogz View Post
            For a first post, I think you nailed it adam_c.

            Now, I'd be very interested in finding a more logical way to choosing which to pay first.
            Pay off the loan you pay interest on now, then deal with a later problem at a later date.

            The LOC is not a problem NOW (not causing interest payments to be paid NOW), where as the cc interest is costing interest now.

            Get the cc paid off then pay off/pay down the LOC.

            We know little about OP's situation (they have not posted a budget yet). I say this because the amounts owed are TINY compared to most of the problems we see on this site. I would like to think around 6k of debt could be paid off by anyone in about 6-10 months without issue with some minor adjustments to budget.

            Pay off the cc because it is the current problem and deal with the LOC when the cc is paid off.

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              #21
              Originally posted by jIM_Ohio View Post
              I would like to think around 6k of debt could be paid off by anyone in about 6-10 months without issue with some minor adjustments to budget.
              Sadly, I know this is not the case. I have personally worked with a few people on their budgets and there are definitely situations where $6K of debt could take much longer than that to pay off.

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                #22
                Originally posted by jIM_Ohio View Post
                I would like to think around 6k of debt could be paid off by anyone in about 6-10 months without issue with some minor adjustments to budget.
                I don't know about that... Paying off $6k in 6 months is putting $1,000 a month toward debt when you may be used to paying minimums of $200-300. Finding $700+ a month is a lot of money, especially if you don't have a great income.

                If the average household income is ~$40,000, $700 a month is 25% of the total income! Adjusting 25% of money in my budget is not something I'd call a minor change...

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                  #23
                  Originally posted by boosami View Post
                  I don't know about that... Paying off $6k in 6 months is putting $1,000 a month toward debt when you may be used to paying minimums of $200-300. Finding $700+ a month is a lot of money, especially if you don't have a great income.

                  If the average household income is ~$40,000, $700 a month is 25% of the total income! Adjusting 25% of money in my budget is not something I'd call a minor change...
                  If a person cannot pay 20 percent to debt, they are NOT living below their means, IMO.

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                    #24
                    post a budget!!!!

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                      #25
                      adam_c has the math right. In the absence of more info, like a budget, I'd also recommend getting that LOC paid off first. The 25% interest is truly ridiculous, though. I would do everything legal to chip away at that as much as possible. But the first order of business is to avoid the back-interest on the LOC, because if you don't, that changes the effective interest to far above 25%.

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