Clearing up Debt???

I suggest reading any Dave Ramsey book. He's very wise financially. I would start with highest interest debt first. Good luck to you!!

Become familiar with the Dave Ramsay method of debt elimination. Get O. of his books and follow the steps--BUT you've gotta cut up any credit cards you have BEFORE you begin. Read The Total Money Makeover.
Generally speaking, you pay off the lowest balance cards first, then snowball the payments to each higher card. Good luck!
Denise
(Debt FREE, including our house, and LOVING it!)

Sorry to beat on the same drum but I would highly recommend anything Dave Ramsey. I just started reading Total Money Makeover and see the light already. His radio program is also very helpful and encouraging. Basic information but he is a very good messenger/motivator. If you are not wanting to spend money to check the book(s) out then stop by your local library, that is where I got the copy I am currently reading. He also has a 13 week class that many local churches host. So if it is something you are interested in then check what is being offered in your community.

What I have learned so far is that it will be hard work for my hubby & I to get out of the debt mess we created but worth it in the end. No one else can fix the problem but us. Going to a credit/debt counselor doesn't change the behaviors that have got us to this point--which really hit home for me. It is all about changing our behavior toward money--giving us the control back rather than the endless monthly bills and lack of money controlling us.

I listened to dave Ramsey talk show on th web everday when we were clearing up debt it was very helpful due to callers calling in asking questions that DR answered. I pulled our credit reports from all 3 agencies and started making phone calls, we contacted our loan officer and he reviewed the report and instructed us on what needed to be removed quickly and what did not,when we paid off a debt I checked online on our credit report to confirm that is was removed and when they took the time to remove it I called and called and called again until they did. You can do the work yourself but it is just that work!

Back in 1999 I used the Consumer Credit Counseling Services in my area which was FREE at the time, and when I did my debt consolidation they paid off my highest interest rate debt first, then snowballed the payments on the other credit cards. Yes, it feels good to pay off the lower balance cards first, but you're still paying the higher interest rate on the others which will cost you more money in the end. The other thing they did for me was negotiate lower interest rates with the companies that were open to this (not all companies will lower your rate).

Suze Orman's website (www.suzeorman.com) has good advice on this as well. Go to www.AnnualCreditReport.com and check all 3 of your credit reports to make sure everything is accurate and start from there. Unless you are behind on payments by at least 3 months, you can do this on your own without an agency. Good luck!

Congratulations on your clearing up your debt. You don't need an agency to help you do what you really can do for yourselves. You will need to be patient, diligent, and consistent.

Different people choose to do it different ways. You must figure out which way works best for you. Begin by getting your ligitimately free credit report at www.annualcreditreport.com.

Some work on paying down the highest interest balances, while other suggest paying down the cards with the lowest balances. You should always talk with your debt companies to find out if they will give you a deal or not.

If something questionable is on your credit report, send that creditor a letter certified mail questioning the debt. They have 30 days to prove this is your debt. If they don't prove this is you then they have to remove it.

Learn more about what way will work best for you and then just be diligent and consistent while saving money for your new home in 2012.

There is more but too much for this post. I really hope this helps.

I like all of the previous answers but I have to say I haven't read Ramsey and it really depends on what kind of debt you. Of course we won't put your business out there but generally because of how credit scores etc are calculated you may want to consult your bank to have them explain the tiers involved and how each year effects your credit score differently.

I will assume that Ramsey explains this all in his book.

I'll cast another vote for Dave Ramsey. Pay off debt with the highest interest rate first, unless it has a tax benefit (like your mortgage). Only buy what you absolutely need and put all your extra money (assuming you have an emergency fund already estabilshed) on your debt. By the time you have it paid off, you should be used to living on what you earn and not spending credit. Congratulations - you're doing a wonderful thing for yourself and your family. If you have children, explain the changes in spending habits so they can learn to be good money managers, too.

My best friend went to buy a condo and she found out that she had to make sure that she paid off all of her bills and that she made regular payments for a year on all of her bills.

Hi, 2boys:

Check the Better Business Bureau in your area.
They have credit counselling available.

Thanks for asking.
Good luck.
D.

My advise would be to do it on your own. Why pay someone to do something you can easily do yourself?

If you know even basic excel, I recommend you set up a worksheet where you can track, how much you owe and the payments you've made. This will help to keep you organized.

Two things that cause your credit score to quickly drop are 1. Late payments 2. Using too much credit - the ratio between the amount of credit available and the amount used. Keep it under 50%.

You should pay off the debt with the higher interest rates first. The only time this rule doesn't apply is if you have a small debt and can pay it off very quickly (within a month or two) just to get rid of it.

Also, don't wait until the payment is due. If you have the extra money send in a payment. Remember interest is calucalated and added to your accounts daily.

You should also try to contact your creditors and see if they will lower your interest rate.

Good luck to you.