Can You Tell Me What Debt To Pay Off First
Posted on
October 26, 2009
at
1:32 am
i have so much debt right now and i am in the process of selling a lot of things just to get funds to pay for them. my debts range from rent to car notes to utilities, to credit cards and Dr. bills. sadly i've been neglecting all of them and i want to know what i can do to get this all straightened out!can you tell me what debt to pay off first??
Posted on
October 26, 2009
at
2:04 am
In knowing what debt to pay off first, it's crucial to differentiate between the essential debts and the non-essential debts. Essential debts are those debts that are, when left unpaid, would render serious consequences, because they make up one's basic needs. They also typically have security or collateral attached to them. On the other hand an unsecured debt would not have a debilitating effect on a person if it were left unpaid. However, these are considered not as top priority as the essential debts, and paying for these debts are not really considered as immediate or crucial compared to the others.
Posted on
October 26, 2009
at
2:28 am
in finding out what debt to pay off first.... what can be considered the essential debts and the non-essential ones??
Posted on
October 26, 2009
at
2:35 am
in finding out what debt to pay off first.... what can be considered the essential debts??The essential debts are:- Mortgage / Rent- Utilities- Car payments- Tax debt- Child support / alimony
Posted on
October 26, 2009
at
2:45 am
Right. Mortgage is definitely an example of what debt to pay off first. Putting it simply, making payments to keep a roof over one's head are absolutely essential. If an individual is not able to keep up with their monthly mortgage payments, they may lose their home due to foreclosure. When a foreclosure occurs, a debtor's house is sold by the mortgage lender or another creditor. The funds generated from selling the house are then used to pay for a debt, or debts, that the consumer owes.
Posted on
October 26, 2009
at
2:55 am
Rent is definitely another priority debt, if you're asking what debt to pay off first. Obviously, defaulting on rent will result in getting kicked out from your living quarters. If you think you're unable to take care of rent dues, immediately inform your landlord or landlady about the situation. It is essential for a tenant to obtain a written confirmation from their landlord in reference to the arrangement that they would agree to set up on your payment plans
Posted on
October 26, 2009
at
3:02 am
how abt credit card, shouldnt that b essential too?
Posted on
October 26, 2009
at
7:57 pm
There's a thin line between considering credit card debt as an essential debt and a non-essential one. If you are not able to pay for your credit cards, you will lose your credit privileges, and in turn, your creditors may sue you if push comes to shove. Inability to pay also results in higher interest rates and penalties.To determine what debt to pay off first if you're not entirely sure about what is essential or non-essential, you need to take two things into consideration: your relationship with the creditor, and if collection efforts towards that particular account have commenced.
Posted on
October 27, 2009
at
4:08 pm
To pay off you debt using debt stacking (debt rolling, debt snowballing, etc.) you first start with the account with the smallest balance first. You can also start with the debt with the highest interest rate and is actually the best approach. But there is a phycological effect of paying off a credit card that is motivating and why many experts recommend starting with the smallest balance.
Posted on
October 27, 2009
at
10:49 pm
That's an interesting approach, Debt Elimination Don. Dave Ramsey actually encourages consumers to do just that. As you see yourself making progress in paying off your loans, you get energized and pumped up to finish what you started!
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