Financial Challenges Support Group
This community is for people who are struggling to meet financial obligations of any kind. Financial challenges include everything from the day-to-day challenges of making ends meet to managing credit card debt to bankruptcy. Get support from others who are going through similar obstacles on the road back to financial stability.
I have a friend looking over our finances with me. We are taking a long hard look at everything. she wants me to pay off the high interest rate stuff first and to some extent I do agree with that. But I also want to pay off the bills (paid one off today!) that are smaller. Like $127 and $300 bills. I am wondering what different methods there are for paying off bills.
I know there was one that you pay the smallest first. There is one where you pay interest bearing first. There is one where you pay the largest off first (makes no sense to me) and there is the one where you pay nothing to anyone except the one you are trying to pay off. I think that one is financial suicide. JMO there.
Are there other methods? and which one is best? Or is just everyone's opinion to their own?
I know there was one that you pay the smallest first. There is one where you pay interest bearing first. There is one where you pay the largest off first (makes no sense to me) and there is the one where you pay nothing to anyone except the one you are trying to pay off. I think that one is financial suicide. JMO there.
Are there other methods? and which one is best? Or is just everyone's opinion to their own?
Have you ever heard of Dave Ramsey? He has several books on getting out of debt. His plan is called the 7 baby steps to financial freedom. He knows his stuff. One his website (www.daveramsey.com) you can listen to his radio show, where people call in and ask advice on their finances. I have learned alot of things from Dave about finances. The baby steps to financial freedom are listed there to. Dave belives in paying off the smallest bill first so that you can gain momentum
when paying off bills. He suggests that when you get that first bill paid off that you should use the money that you would normally pay on that paid off bill to go toward the next bill on your list (paying the 2nd bill plus the money you would normally pay on the first bill). And you do the same thing when the 2nd bill is paid off. Do you see how the momentum builds? Everytime you pay off a bill you have more to pay off the next bill, because you just keep rolling the same amount of money over, but you have less bills. This will help to get them paid off quicker.
Note: His plan suggests that you keep paying the minimum on the other bills while consintrating on paying off one bill at a time.
i liked thier servicee helped me out alot.