I want to be debt free

[evilalwayswins]

I would like some advice on paying off my credit cards. I started this battle about 14 months ago.
I have 11 cards I am paying on. 4 cards are in a debt consolidation company and the other 7 I am paying on my own. The total debt when I started was about $13,000. I am currently down to about $8500. What I have been doing is paying extra on all cards. But I wonder if I should be paying minimum payments on all but one and put all I can towards one card?

[Weird Tolkienish Figure]

I would like some advice on paying off my credit cards. I started this battle about 14 months ago.
I have 11 cards I am paying on. 4 cards are in a debt consolidation company and the other 7 I am paying on my own. The total debt when I started was about $13,000. I am currently down to about $8500. What I have been doing is paying extra on all cards. But I wonder if I should be paying minimum payments on all but one and put all I can towards one card?

There's several strategies, the "debt snowballs", paying the highest interest rate first, etc. Mathematically, paying down the highest interest rate first is the most sensible, however some people like the "debt snowball" method.

Also, you could try transferring as much of your higher interest debt to a 0% or low APR card and doing it that way. Essentially you want to have as low of a interest rate as possible, all other things being equal.

http://www.nerdwallet.com/blog/top-credit-cards/nerdwallets-best-low-interest-credit-cards/

[snafu]

If you are wiling to give more details we may be able to offer suggestions to get you out from under $ 8,500. faster and more efficiently. What is your annual salary and net take home each month? Do you contribute to a retirement plan? Do you work with a budget? What are your monthly costs like Rent/mortgage, Utilities [heat/electric/water/trash], Cell ph, Cable /internet, Food/restaurant, Transportation, auto payments/operation/maintenance/insurance, Clothes, Entertainment etc.

Please list your debts, balance and interest rate of each.
What sum goes to debt consolidation? Do you have any irregular expenses that come up to blind side you?

If your June bills are handy, how much was added in interest charges?

[ampjess]

Try using mint.com to set up budgets. Use extra income to set up an emergency fund, then try to aggressively pay down your debt. Look into snow-balling as someone mentioned above!

[Eagle]

I would like some advice on paying off my credit cards. I started this battle about 14 months ago.
I have 11 cards I am paying on. 4 cards are in a debt consolidation company and the other 7 I am paying on my own. The total debt when I started was about $13,000. I am currently down to about $8500. What I have been doing is paying extra on all cards. But I wonder if I should be paying minimum payments on all but one and put all I can towards one card?

Congrats on reducing your debt from 13k to 8.5k!

You need to ask yourself: How are you going to get out of debt? – Lowest balance (Debt Snowball) or highest interest (Avalanche).



*If the debt snowball…

1. Create a list of all of your debts: credit cards, car loans, student loans, mortgages, etc…
2. Next to each one write down the total balance owed.
3. Re-order these from smallest to largest debts (use Excel to make this simpler.)
4. Pay the minimum payment on all of the debts – except the smallest one.
5. Put every extra dollar you can find towards paying off that smallest debt.
6. Celebrate like crazy when you get that first debt paid off.
7. Take the amount you were paying towards the first debt and put towards the next smallest debt. Do this until this one is paid off.
8. Celebrate again!
9. Continue this process until each one is paid off.

*If the avalanche method…

1. Create a list of all of your debts: credit cards, car loans, student loans, mortgages, etc…
2. Next to each one write down the total balance and interest owed.
3. Re-order these from smallest to largest interest rates (use Excel to make this simpler.)
4. Pay the minimum payment on all of the debts – except the one with the highest interest.
5. Put every extra dollar you can find towards paying off that loan with the highest interest.
6. Celebrate like crazy when you get that first debt paid off.
7. Take the amount you were paying towards the first debt and put towards the next debt with the second highest interest. Do this until this one is paid off.
8. Celebrate again!
9. Continue this process until each one is paid off.

Read more here on how to get out and stay out of debt.

[Michael Thompson]

I think you should have remove all cards except one card and use your money only on necessary things, save your money and put it in your debt repayment. good luck

[~bs]

I like the idea of the snowball. Reason is that it's really to see measurable progress by the elimination of debt balances one by one. Debt avalance is probably the best from an absolute dollar sense, but probably easier to get sidetracked or to lose interest with out these debt elimination "rewards".

[jackmiller]

I would like some advice on paying off my credit cards. I started this battle about 14 months ago.
I have 11 cards I am paying on. 4 cards are in a debt consolidation company and the other 7 I am paying on my own. The total debt when I started was about $13,000. I am currently down to about $8500. What I have been doing is paying extra on all cards. But I wonder if I should be paying minimum payments on all but one and put all I can towards one card?

Yes you should. I would strongly suggest checking out the book The Total Money Makeover - it provides an excellent and easy plan on getting out of debt.

[YolandoAmaya]

It is a good thing that you have reduced your debt from $13,000 to $8,500. Yes, you can use the snowball method to reduce your debt. It is good for more than one card holder. You have to pay the smallest amount or largest amount first, then when it will pay off, move to the next one.