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Tagged With "Debt"

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Re: Senior Couple drowning in debt

Ray Taylor Tetreault ·
Birdman: You may have problems with a reverse mortgage. My understanding is that a home needs to be paid in full which my math is showing to be $98K (72+26) between current balance and equity loan. While your equity (assuming full market value, not including fees or interest) amounts to $87K, you may or may not qualify for another equity loan it would only shuffle debt, not really pay it since you are talking about $80k in unsecured debt. Bankruptcy may or may not be an option but be aware...
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Re: The Snowball Method for Paying Off Debt

Former Member ·
I've used both methods, and have found that when I REALLY need the motivation to keep going, the snowball method works best for me. While I might end up paying slightly more than if I used the avalanche method, the snowball method helps me see wins faster - which helps me stay motivated to roll that amount over to another debt once the first bill is paid off.
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Re: The Snowball Method for Paying Off Debt

freensp70 ·
Hi, I am new to the site. I am deeply in debt and going through a divorce. I am trying to figure out basically how to get back on track and where to start. My husband handled the finances and I am trying to figure out how I am going to pay off my debt and keep my head above water. Any suggestions of where to start would be great. Thanks.
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Re: SUMMONS

Moore Income ·
@Sango could you elaborate more on what you are referring to when you say a "summons to pay off debt"? Are you referring to someone being ordered by a court to pay off debt?
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Re: SUMMONS

Sango ·
A debt collector has sent a server to my home to give me a summons from a debt collector. I need help in providing an Answer to the summons. That is my concern. How do I reply to said summons?
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Re: SUMMONS

Moore Income ·
@Sango this is not an issue I am very familiar with and I of course am no lawyer. But there is hope! Google to the rescue! I found this article detailing how to respond in 3 easy steps . Also this one about answering a civil summons . Hope this helps somewhat! If you need more info, just type this search term in google: " how to respond to a summons from a debt collector "
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Re: SUMMONS

Sango ·
😮 WOW...thanks so much.
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SUMMONS

Sango ·
Does anybody know of a book that one can use to give an answer to a summons to pay a debt?
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The American Dream v2.0

Rob Loftus ·
Out With The Old And In With The New The American Dream. A house in the suburbs, 2.5 children, fancy car in the driveway and a job with a pension and gold watch. This may sound a little bit outdated, but it’s still the structure, on the whole, of the American Dream. However, there has always been one flaw in this dream. DEBT. 78% of Americans live paycheck to paycheck and are literally two paychecks away from losing everything. When this happens, and it does, people find themselves losing...
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The Snowball Method for Paying Off Debt

Moore Income ·
I am curious to know if anyone here has used the Snowball Method for paying off debt and what the results were. I personally have done it a little differently (more like the avalanche method), only because certain credit cards I owe on are still under a "no interest" sign up bonus. To me the snowball method seems like a pretty effective way to do it. What are your thoughts? Have you tried any of these methods? What are some helpful tips you have used to pay off debt?
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Hello, to all

Karen White ·
My name is Karen. I am 69 years old, retired, and deep in debt which I am trying to pay off so I can be debt free. Not getting any where fast. When I worked I had no problems now that I am retired it is a struggle to say the least.
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Debt Pay Down Tool - Now THIS is Cool!!!

Men On A Budget ·
Without question, the biggest budget buster than my wife and I uncovered in our Penny Hoarder journey was the ridiculous amount of credit card debt and the accumulation of interest being charged on the interest, month after month. Have you added up the total of minimum payments and the amount of interest alone from just one month? We were aghast at how many of today and tomorrow's dollars were going to pay for yesterday's expenses... hundreds and hundreds of dollars each month. We found a...
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Payday loans - essential or evil?

Former Member ·
Have you ever taken out a payday loan? These short term loans have been discussed a lot in the news lately because federal plans to restrict payday lending (basically, a lender would have to prove you can probably pay the loan before giving it out) have been shelved for now. A lot of people say payday loans are evil because of their fees - some have interest as much as 700% . But others say they're essential for people who are unbanked or underbanked, meaning they manage their money outside...
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What are some really effective ways to boost a credit score?

Briana ·
It's been a long journey of boosting my credit score - I'm currently signed up with Credit Sesame and get tons of helpful tips from them on how I can do this more effectively. But my question is - is it better to pay off credit cards slowly or all at once?
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Senior Couple drowning in debt

Birdman ·
We are in our late 60s but in good health and are drowning in debt. Our only asset is our home and what's in it. Car is leased. Our home is worth about $185,000.00 and we owe $72,000.00 on it plus have a home equity loan of $26,000.00. Our credit score is 700 and none of our many credit card and personal loan payments have ever been late. I have 1 personal loan of $85,000.00 from a friend at 6% interest that we now owe $29,000.00 for which the monthly pmt is $1,000.00. We need to pay this...
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Re: The Snowball Method for Paying Off Debt

Prince_Alarming ·
I'm currently using the snowball method of paying debt off. Lucky for me I have no debts that incur interest or otherwise I would use avalanche method. I have 3 of 8 paid off, by using snowball. What's difficult about paying the debt off is, being on a fixed income and having a crapload of responsibility to endure and then another unexpected expenditure pops up. Also too, trying to work on raising my credit score(eg. Credit Builder Loan or a secured credit card)and budgeting for it. Makes it...
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Re: SUMMONS

George Simons ·
@Sango also, here's a list of forms you can use to respond to a debt lawsuit. Just the form for the state you live in; fill it out and file it with the court.
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Re: SUMMONS

George Simons ·
@Sango also, here's a list of forms you can use to respond to the debt lawsuit. Just choose the form from the state you live in; fill it out and file it with the court. https://www.solosuit.com/posts/9
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Re: The Snowball Method for Paying Off Debt

triplea87 ·
The higher number of debts you have to pay off, the more effective the snowball method becomes. Its main advantage lies in breaking down these debts into the manageable chunks and the corresponding psychological payoff of crossing debts one by one (even if you have to pay a little more interest over time when compared to the avalanche method). Regardless of the methods, they are all directly correlated to the level of budgetary discipline; just like going to the gym. I found one tool to help...
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Re: The Snowball Method for Paying Off Debt

GinaH ·
Last year I had 7 different debts of all sizes, retail cards, student loans, dental, etc. I used the Snowball method at first because I need the motivation of seeing a win, no matter how small. I got a part-time job and used all that money toward the debt and now I am down to the last 3. Yay me! However, here's what I learned re: your credit score and paying off debt. Paying off my Student loan debt felt SO good; getting that weight off my back after 12 years. My payments increased every...
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Re: The Snowball Method for Paying Off Debt

Swayla Monche ·
you paid off your student loans and your credit went down? How is that possible?? Sound like a scam to me! If that's the case, I might as well not even pay my student loans off.
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Re: The Snowball Method for Paying Off Debt

GinaH ·
Don't give up! It turns out the drop in my credit score was temporary. And as I pay more down on my credit card and other bills, my score keeps getting better. The point I wanted to make was if you have money and are making a choice as to what bill to pay off first, choose a bill like a credit card to keep your credit used/available credit ratio in good shape. When you pay off a car or student loan, that available credit is closed and reduces your available credit amount, which also has an...
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Re: The Snowball Method for Paying Off Debt

Swayla Monche ·
Aww ok, what about when you get the secured card to buy things on credit and pay if off on the due date... for example if I get qualified Dr a secured card that has $1000 loaded on there and I can only spend 30% ($300) when it's time to pay that back, do I just pay the $300 or would I have to pay the whole $1000 back?
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Re: The Snowball Method for Paying Off Debt

Leon ·
Can someone explain the snowball method? I have a few credit cards I would like to pay off soon.
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Re: The Snowball Method for Paying Off Debt

GinaH ·
The Snowball method is where you pick the debt with the smallest balance. You make minimum payments on all of your other debts and put every penny you can manage on the smallest debt to pay it off fast. Then when that debt is paid off, you take the payment from that debt and start applying it to the next largest debt. The theory behind this method is that seeing quick wins will keep you motivated. You might pay a little more in interest overall but the motivation of seeing a "win" keeps you...
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Re: The Snowball Method for Paying Off Debt

sthom ·
I have used the snowball method as well because getting debts smaller debts out of the way first creates positive momentum for me. Then, on to the next and the next. Yes, I'm concerned about the interest rate but not as much as knocking some things off the board.
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Re: The Snowball Method for Paying Off Debt

GinaH ·
@Swayla Monche If you have a secured card that has a $1000 limit and you spend $300 of that limit, you now only have $700 available for spending. When the bill comes you pay back the $300 that sets your available spending limit back to $1000. Does that answer your question?
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Re: Senior Couple drowning in debt

lismox ·
It just seems like bankruptcy is your best option. The amount of debt you have is just so overwhelming. But like the others said, maybe talk to a consumer credit counseling service, an attorney, or a financial advisor.
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Re: The American Dream v2.0

FreebiePharm ·
Great read! Thanks for sharing. The hardest part for most is facing reality and making sacrifices to come out better in the end and when the crisis hits, you will be prepared!
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Re: The American Dream v2.0

KellyFromKeene ·
Great reminder, thank you. And congratulations!! Its so, SO important to know right where you are in therms of finances. So many people, including me at one time, just hide their head in the sand. Things will never get better unless you are willing to make changes, and you have to know where you are to start out.
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Re: The Snowball Method for Paying Off Debt

MsKimberly ·
I have never tried it. I cannot afford to have debt. My bills consist of rent, electricity, rental insurance, and the Internet. They are paid on time every month--the amount that I am required to pay. One exception is rental insurance. I pay that once a year in full. If I could afford to I would do the rest that way.
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Re: The Snowball Method for Paying Off Debt

Moore Income ·
@MsKimberly I agree, it would be nice if we could pay off some of those bills in full rather than monthly!
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Re: The Snowball Method for Paying Off Debt

MsKimberly ·
@Moore Income Jon, I am determined that once I am moved into my new apartment, the next bill I want to pay at least 3-6 months in advance is the Internet.
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Re: The Snowball Method for Paying Off Debt

Moore Income ·
@MsKimberly That sounds like a good plan. Will they let you pay ahead on internet bills or does it vary by company?
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Re: The Snowball Method for Paying Off Debt

MsKimberly ·
@Moore Income Jon, I have not asked. However, if the cost is the same each month, I think they would be thrilled to have their money upfront whether or not a contract is involved. Who doesn't want their money yesterday?
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Re: The Snowball Method for Paying Off Debt

TinaS ·
Ive heard of both of these, but haven't begun to use them. I have three credit cards, two retail and one medical. However one went from retail card to a real credit card through Citi. Allows me to use it anywhere now, not just at the store I originally got it from...yeah me. NOT. Anyhow, I don't feel our family makes enough money to do either one of these debt reduction tactics (even though I'll look into it more), but I do pay a little more each month just not a great deal more. What I am...
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Re: The Snowball Method for Paying Off Debt

Moore Income ·
@TinaS Both of these methods are simply a way to pay your cards off quicker in a strategic manner. Even if that means a little bit at a time. Whatever you can do, by applying one of these methods, the results can be much better. I have done what you are thinking about doing. I transferred my balance from one card that was going to start charging interest to a card with a no interest sign up bonus. The only things you need to make sure of is that the card you transfer too includes the no...
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Re: Senior Couple drowning in debt

Don Feyma ·
I just went through this, with a lot more equity in my house and quite a bit lower debt. The reverse mortgage is a pretty complicated vehicle, but the main thing is, looking at your numbers, you probably won't get any cash out at closing if you do qualify. Basically, your existing debt, mortgage and equity line, would be paid off as part of the process. The amount of reverse mortgage available depends on a formula using your appraised home value (you'll pay for the appraisal), your age (age...
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Re: SUMMONS

Leslie Kay ·
Check the date of the debt I received one that is for an old account over 9 years old to be able to arnish my income tax. I need to know how to cancel this order. It was issued over many years earlier and court ordered but obviously outside of the limit of years to even be collected. Do I call the debt collector or the court on this.
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Re: The Snowball Method for Paying Off Debt

Leslie Kay ·
Nevermind someone already did this. Could someone describe these 2 methods to me. thanks
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Re: The Snowball Method for Paying Off Debt

GinaH ·
Debt Avalanche method: Saves you money in interest in the long run. 1. List your debts with remaining balance and interest rate. 2. Pay the minimum payment on all your debts except for the one with the highest interest rate. Put all your extra money against this debt. 3. Once that debt is paid off, use that payment and any extra money on the debt with the next highest interest rate. Debt Snowball method: Gives people a faster feeling of accomplishment 1. List your debts with the lowest...
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Re: Should I use my savings to pay off student loan debt?

Elizabeth Pugliese-Shaw ·
What is the interest on your student loans? Even if you are paying mostly principal there is still interest. Then what interest are you earning on your savings? I am willing to bet that its much lower that the interest charged on your student loans. If you saved up before, you can save up again. Pay off those student loans. You will feel better AND your money will be earning more because you won't be losing value by paying interest.
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Re: Should I use my savings to pay off student loan debt?

JeremyM ·
If you use all your savings to pay off your student loans, how quickly can you get your savings back up to the same level or more? It's always better to pay down your debit, but you should keep about $1000 aside for emergencies. Ask yourself "Would it be better to keep putting money each month to a student loan that is growing due to interest (aside from right now where most loans are interest free due to the pandemic) or would it be better to not have to worry about it and apply that...
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Re: Should I use my savings to pay off student loan debt?

sthom ·
Plus, the interest on the student loans are probably low or no interest at all as @JeremyM pointed out. As for the emergency fund, I'd keep as healthy an emergency fund as possible. You don't know what's coming down the pike. You've done good, @Ann Hay .
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Re: Should I use my savings to pay off student loan debt?

Ann Hay ·
Thanks for the advice. Unfortunately my loan didn't qualify for interest free. My big saving grace though is that it's completely federal, no private. What I may do instead of using savings is try to get extra shifts at work. It is so nice to see a light at the end of the student loan tunnel. Party at my house when I make the final payment.😊😊
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Should I use my savings to pay off student loan debt?

Ann Hay ·
Hi. First time posting. Thanks for being a great resource. I finally paid my student loan down to the point that I actually have enough savings to pay it in full. I have been debating whether to use my savings or just continue to pay on them. Right now I'm paid ahead six months so the majority of my payments are going towards the principal. Any opinions? Advice? Thanks so much.
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Re: Should I use my savings to pay off student loan debt?

Ann Hay ·
@Elizabeth Pugliese-Shaw The interest on my loans is 7.25 percent. The interest on my savings account is negligible. I think what I'm going to do is shorten the time by paying significantly more. I have 3 years left. I won't completely wipe out my savings but I will use it to pay a thousand from time to time. Thanks for the advice.
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Re: Should I use my savings to pay off student loan debt?

Ann Hay ·
@sthom . Thank you. It's been a long time coming.
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Re: You heard someone on TV say student loans are “good debt” that pays for your education and usually carries low interest. Go or no-go?

AJ ·
No debt is good debt. Some are better and there is some truth to the lower rates for ED loans. I see people drowning in ED debt and some can't qualify for mortgage. Best to get 2 year degree then go for remaining years as needed. Try and do part time work while at school to cut amount needed. Reasonable car debt so you can work is better debt. Poor debt is charge cards of any form. There should be a class on financial needs (and not just stick or insurance finances).
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