CREDIT CARDS* Whats The Best Way To Pay Them Off
I have a few credit cards that i want to pay off. I have some money in savings but dont know if i should use that money (all or some) to pay off those cards. I also have a diffrent savings account wich money is deposited every week not alot only 40 bucks or so a week. So its not like i would empty my onlyaccount if i did www.this.I also have money in a 401K but i think there is a penalty for taking a loan against it. So do i just take the money out and pay those cards off???
n2x, usually paying off your credit cards is smarter than building up a bunch of saving, sometimes even better than contributing to your 401K. But all situations vary.
If you employer matches your 401K than you should be taking advantage of that and continue to put money into the 401K. If they don't you may want to look at if you could better spend that money on your debt temporarily. Most 401K's you can obtain a loan against your vested portion with NO penalty, but you do pay a very modest investment amount, but you are paying it back to you. The only penalty is if you don't repay it.
You should look at it his way? What is the rate you are paying on your credit cards? That is the investment rate or your rate of return if you pay them off. If you are paying 16% interest on your credit card, than anything you put towards that is like earning 16% interest for you instead of the bank.
So if you can get a 401K loan for for 6% you are making a decent return, and if you use your money from your 0.65% saving account, well you are doing even better!!.
disreagrd the post from the last gy ... he only has one post to his history ,,,, and e posted a link that had a referral code, chances are he is referring you to a place that he gets a personal benefit from
hmm...refi....
pretty expensive way to pay off your credit card debt (e.g., pts, loan fees, etc.)...also, not so sure about the wisdom of rolling unsecured debt into a secured loan.
I would definitely try to pay off the debt first before rolling it into my mortgage.
what about the old trick of transferring to a new credit card 0% for 6 months. I've never had to do it, but it makes sense.
nbhomes - depending on a person's situation the rolling of balances from one credit card to the next can work, but you need several factors:
1. good enough credit to obtain those type credit card offers.
2. dedication to do it, and even better a written plan on how it will be done.
3. An identified amount of money set aside each month to pay down your balances.
You should also determine if you can do this in less than two or three transfers with the transfers matching your current highest credit card limit. If you can't you will probably tap out your credit ability before it is completed, but it would give you a good start.
I am also hoping that they deleted a post on here as I don't recall saying anything about a home equity loan or referring anyone to my website and only having one post as the two other posters are referring to.
Use the Debtinator tool in the My TCI> My Tools area. It will organize all your debts, Credit Cards, Mortgages, Personal Loans into one statement and will tell you what loan you should focus ALL your energy on before you go to the next one.
Make sure you ALWAYS pay over and above your minimum balance on the debt you have to order.
Private Message Me and I will give you a free copy of our Cash Under the Cushions EBook.
Never Never roll it into a mortgage. Never file bankrupcty. And never give up.
OK, how about this the interest must be killing you. You get one card a new one maybe. MBNA and american Express are known for balance transfers. Usually when you get one of those offers in the mail they will take you if you transfer your balance. Anyway, That counts as a new card or account. Also each time you pay one off go to your banker if you don't want to do the above and say look here see what I did ! They will say say yes you have been a good obedient boy what can we do for you at that time you ask for a $500.00 extension. Did you know an extension counts as much on a credit report as a new issue ! It shows good faith !
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