Debts

[melodylogan45]

Are you working on or have you paid off any debts this year? I have a lot to pay off, so I am working on one debt at a time.

[countrygirl12]

You can't usually "work on one debt at a time".  If you owe money on 3 credit cards then you have to make a payment on each card.  Or if you have 2 loans you have to make a payment on each loan every month.  So you can't really work on them one at a time.  Would be nice if you could because you could put the total you pay all toward one bill and it would go down faster.

[catherinedwhite]

I continue to pay down my debt each year......and then Christmas hits. 
I need to plan better for this holiday.

[blessedwith3boys]

I'm hoping to pay off some medical debts by doing this site. 

[gaylasue]

I was completely out of debt in April until I bought a new car in May.  Our house, other vehicle and everything else is completely paid off.  I've even been able to save some $$ for my Hawaiian vacation in June!

[lvstephanie]

You can't usually "work on one debt at a time".  If you owe money on 3 credit cards then you have to make a payment on each card.  Or if you have 2 loans you have to make a payment on each loan every month.  So you can't really work on them one at a time.  Would be nice if you could because you could put the total you pay all toward one bill and it would go down faster.

Although you are correct, usually when people say something like this, they mean that they pay the minimum due on all of their debts except for the one that they are "working on"; that one they'll pay more than the minimum in order to resolve that debt more quickly (and to eliminate some of the interest on that debt).

I've heard of two different strategies for doing this... The first is to "work on" the account that has the least amount of debt. By doing so, you will pay that off quickly: you then won't have to worry about it and it gives you a boost of confidence by allowing you to "see the sky" so to speak.

The 2nd strategy is to focus on the debt that has the highest interest rate. Doing so will save you more money in the long run, even though it might take longer to pay off one of your accounts and may be discouraging esp. if this is also the account that has the most debt. Although I've heard some good economists argue for the first strategy, I try to follow this one.

[squirrelgirl44]

Nope. I am debt free, with the exception of my house. I pay a little extra to the mortgage every month and put money in savings. I am able to live happier now that I don't have to penny pinch on every single purchase. I obviously still have a budget and never turn up my nose at a penny, which is why I am here on FC!

[alice44]

I suggest making the minimum payment on each debt each month.  Just enough to keep them all under control.

[Penwoir]

I agree with lvstephanie. I think we all need a bit of motivation when it comes to paying off credit cards and it's really whatever motivates you the most. We all respond differently to different motivating factors but my strategy would be to start paying down the credit card which has the highest interest rate. I would pay the minimum on the other credit cards and put everything I could toward the expensive one. Then when that is paid off, I would start on the next highest paying credit card. However if you are motivated by having one paid off as quickly as possible, irrespective of how high the interest charge is, then start with the one with the lowest balance. You will more quickly see your results and that will encourage you to carry on.

[Kimdud22]

I am in the same boat and it sucks! I hope to start after holidays.

[sdenimandlace1]

Have paid off 2 need to work on a couple more.

[ancmetro]

    Some debts are unrealistic...unethical!

[cathy37]

I am always working on paying off bills, but they seem to never go away.  I pay all my bills on time and some I pay more than the minimum amount.

[vg7405]

I recently assumed a new debt: new car. Yay, but ugh at the same time. I hope to pay off two debts by June of next year. Here is hoping.

[kimber62372]

I reestablished my credit about 8 years ago and accumulated more debt on top of the debt that I paid off! It's never ending but I really don't care because it's part of life and there will always be money and people owing money no matter what. I'm not stressing any more. It gets paid! Some times I don't know how, but it does! LOL