Paying Off Debt
What are the best Real Estate Investing strategies to help pay off current debt?
My short-term goal is to eliminate all this bad liability and expenses that I have..so that I can increase my assets and income and cash available.
It would be ideal to find deals that would enable me to pay off balances.
I am new to REI, and would like to accomplish these goals in order to get on the right path to building wealth.
Your suggestions would be appreciated!
[ Edited by Chrishette on Date 05/10/2005 ]
Easy...
#1. Figure out your total monthly payment for all of your debt. (e.g. $1000)
#2. Add any additional payment that you plan on making each and every month. (e.g. $100).
#3. Figure out how long each will take to pay off if you make the minimum payment on each
#4. Arrange your debts in order from shortest to longest (payoffs).
#5. Begin paying your monthly payment ($1100) to the one that has the shortest payoff. When that's paid off, move to the next shortest payoff, and continue to make the payment of $1100.
This strategy is more effective than paying off the highest interest loans first.
One other thought....
Credit cards often have 0% APR for all balance transfers. Take advantage of those programs.
Student loans...sometimes you can use goverenment programs to get very low interest rates. My sister has some student loans. Most of them are under 1% APR.
Car....sell it and buy a cheaper one. Once you're out of debt and can pay for it with cash, buy the car you want. Mine cost $3200, gets 40 miles to the gallon, and has cheap insurance, and I wrote out a check for it.
a 23K car is way too expensive for someone with 40K in other debt. buy a 4 yr old mazda,toyota or nissan for around 5-6K. i bought a 25K car when i got out of grad school, but i had zero debt and a decent job too. i paid that off in 3 years but ended up paying around 6K in interest. way too much money !!!! i bought my first home for 6K down and its appreciated 100K. with the 30K i spent on my car i coulda bought a few more!!!!!
its a tough decision, but really, sell the car. you'll be much better off.
I bought a $1400 Taurus 4 years ago. Look for the same and with the extra $21000 you could pay off all your high interest CC debt and have some left over for real estate
My girlfriend is stuck in a 30k car lease that cannot be transferred according to Honda. It is worth around 22-24K according to Blue Book....and owes around 27-28K. She has 9k worth of other debts and is pretty stuck. We all told her to just give up the $430 payment + $200 insurance a month as its so much money. The lease only started last Feb.
Does anyone see any other option?
Thanks![ Edited by riot8ap on Date 01/08/2004 ]
She should get a better job or a second job.
Turning the car back in will harm her credit immensely.