jacki0o0 asked:
We have about $15,000 in credit card debt and would like to pay it off in one year. Is this possible?
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Yes, if you have the disposible income to do it.
No fast food, no eating out, no movies, no extras! Make a budget and stick to it. Write it down. Pay for your groceries and gas and other things that you need with cash. Stop making unnecessary trips to the store, save gas (it’s $3 a gallon!) and don’t buy expensive food at the store. Buy the store brand, shop the sales, eat spaghetti and hotdogs like a college student.
Pay at least twice the minimum payment on each card. Plan it out on a calculator:
Pay off the highest interest card first, then take the money you were paying on that one and apply it to the next higher interest card and so on. Be sure to put some money in a savings account, even if it’s just $20 a week, so that if there’s an emergency and your car breaks down or something you have money saved and don’t have to charge it to the credit cards.
After you pay them off you should not use them unless you have to charge something you can’t pay for any other way, like a rental car. Save your money, have 3-6 months of living expenses in the bank, pay cash for things you want.
edit:
If you take out a home equity loan and charge the cards back up again and can’t pay the equity loan back you can lose your home. People have fallen for that one. I would personally not take out a home equity loan, especially if you have the disposible income to pay the cards off if you just scrimp and save.
Well there are 3 ways do get this done quickly. (1) -The first and quickest would be to use the equity in your home. But unless you get rid of the credit cards and put the money freed up by the home equity loan in a emergency fund for short term goals such as a vac., tires, property taxes, homeowners insurance,Etc. in an money market. Long term goals such as retire in IRA’s and/or 401K. This is not that good of an idea if you dont invest the freed up money. It would be the fastest to pay them off and build a nest egg and emergency money. (2) – Debt stacking (AKA debt snowball) by taking the credit cards with the smallest balance and largest interest rates pay them off first with the min. payment plus every penny you can find and after you pay off the first go to the next and apply the money you were paying on the first to the min. payment on the 2nd one until they are all paid off. This way is the longest and hardest to do. (3) – The last way would be a combination of the two.You will also need to setup an spending plan and look at it 2 – 3 times per week to make sure your on track. But I would need more infomation to see what would be best for you. Is it possible YES I’ve cut $55,000 in debt out of my life in 4 years.
It’s possible but you need to get motivated. Get on a strict, written budget and spend less than you earn. Shred your credit cards and pay cash for everything. Go nuts and sell the junk that you don’t need.
wow, that’s why i never spend money i don’t have.
quickest way is to get another job and use that income to pay off for all the goodies you bought (that i’m sure are in the attic now)