Pay off your highest INTEREST charge accounts first... stop any and all charging. Get a second job if necessary to get some extra cash to pay down the debt QUICKLY so you can recover quicker. Call all companies you owe and try to negotiate a lower interest rate. The worst they can say is no.
Forgot the advice I tell my kids and their friends:
You can not SPEND your way to wealth.
+++++++++++++++++++++++++++++++++++++++++
A little quickie math:
If you're 21 years old and put away $2000 per year - for 10 years - until you're 31 - and from then on you never add another dime to the savings (just letting the interest compound) - you'll have almost ONE MILLION DOLLARS in savings....
HOWEVER....
If you start this savings account at 31 - and put away $2000 every year for the rest of your life - you won't even be close to the million dollar mark...
Forgot the advice I tell my kids and their friends:
You can not SPEND your way to wealth.
+++++++++++++++++++++++++++++++++++++++++
A little quickie math:
If you're 21 years old and put away $2000 per year - for 10 years - until you're 31 - and from then on you never add another dime to the savings (just letting the interest compound) - you'll have almost ONE MILLION DOLLARS in savings....
HOWEVER....
If you start this savings account at 31 - and put away $2000 every year for the rest of your life - you won't even be close to the million dollar mark...
That may of worked back when banks gave intrest, cd's had more then 2% return, and you'd be lucky to not be loosing on 401ks and IRA's.
Send in as much as possible for payments. The minimum payments will NEVER get the cards paid off. Get rid of the charge accounts too. Too many people these days using them to live on, don't. If you can not afford to pay the balance in full each month don't buy it. Keep one with a decent rate for emergencies and dump the rest. Cut them up and close the accounts.
Check out DaveRamsey.com you can also download his podcast if you cannot hear his raido/TV show. Also can go to your local book store he has several books.
If your ready for that life change he can teach you the steps!
That is way to opened ended of a staement, hence I suppose why you are looking for more info. Paying everything down, depending on the situation is NOT always the answer.
The awesome thing about credit is that time heals all wounds, but there are things you can do that can reduce, or erase that time to easily prop up your credit outlook.
All I really have other than a mortgage and the usual monthly living expenses are a credit card under $2000 and a car payment with a little more than $10,000 owed. I'm just looking to set myself up a little better with for the future. Whether its by saving, investing or whatever I can do to help secure something for the future. My job pays just enough to cover the bills and little else.
Check out DaveRamsey.com you can also download his podcast if you cannot hear his raido/TV show. Also can go to your local book store he has several books.
If your ready for that life change he can teach you the steps!
Another vote for Dave Ramsey
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BTW -- I'm not ragging on anyone -- nor pointing fingers -- nor trying to show anyone is better or smarter.
I'm merely stating what I "see", and feel, to be the facts.
We (wife and I) sit on several boards.... some have finance issues - most do not. I'm a "lender" and an angel investor on a personal basis. I can tell you that I'm hit every day with, "invest in my great game changing idea" - and, "I just need some help" - and, my personal favorite line, "I don't really need to but....."
Had I been really smart -- I would have shorted all the home builders to zero... because the people that I hang with all saw this coming. None of us (and admittedly we're on the older side) could understand why financial institutions were lending to the LEAST credit worthy folks (those with no downs) and giving them the "best" (lowest) rates. I knew then as I know now - that isn't going to work. In my life - the least credit worthy didn't qualify for loans - and the "on the edge ones" got little credit and PAID A PREMIUM rate.... only the most credit worthy got the Prime plus rates...
When you see credit issued to those that deserve and EARN it... things will return to normal. I also agree with Dave (Flash) when he says the pendulum tends to swing too far to one side on both sides. That is what we're seeing now, but if you have good (top tier) credit - you can get it without too much hassle. What's too much -- is open for debate... but expect to actually have to PROVE that you can pay it back.
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