There are some right ways to pay off debt and some that are just plain wrong. Don't do these things on your way out of debt.
Coming up with a credit card payment plan isn't easy, especially when you have multiple credit cards to pay off. Here are some of my favorite online credit card payoff calculators. Use these to help you figure out how you can be debt free.
You have a stack of bills in front of you and you may not be able to pay them all. Which debts are the most important? Many people make the mistake of paying their credit cards before their other debts. I argue that credit cards fall very low on the list of debt priorities, especially if you have a mortgage and auto loan. Learn why your mortgage should top your list of debt obligations: How to Prioritize Your Debt Payments
Related Debt Management Reading:
Bill Me Later, the online processor that lets you pay for purchases later, is facing a class-action lawsuit in California for skirting state interest and credit card fee laws. According to Business Journal, online message boards quote interest rates between 40% and 100%.
Forum poster HBSSLaw wants you to contact the law firm (Hagens Berman Sobol Shapiro) if you feel you've been overcharged interest from Bill Me Later. You can email billmelater@hbsslaw.com to give your story or to join the case.
More forum posts:
When I first opened a checking account, I consistently overdrafted because I didn't understand that my deposits were not immediately available for withdrawal. In fact, at that bank cash deposits made after 2 p.m. were not available until the next business day. Checks had to clear before they were available. So, a rush to the bank to cover a check or debit before it posted was in vain.
Those were the days of checks being returned for non-sufficient funds (NSF), which is a whole lot more expensive than overdraft protection because you're charged two NSF fees plus returned check fees from the merchant. And you still have to cover the amount of the original transaction. A $1.00 candy bar could end up costing more than $100. I think people who complain about overdraft protection are nuts. Please pay the transaction for me and charge me $36.
Some overdrafts are innocent, you thought you had enough money in your account. Others are part of chronic money mismanagement. Will those checking account slipups hurt your credit score? Not automatically, but they can eventually. Learn how bank overdrafts can affect your credit.
What else hurts your credit score?
Payday is days away. You have no gas, little food, and no money. For some people, this only has to happen one time before they change their spending habits. For others, living paycheck to paycheck is a viciously uncomfortable way of life. But, it's something that can be changed in just a few steps. Learn what you can do to stop living paycheck to paycheck.
Easy steps to take control of your credit card debt. More >
Stop living from paycheck to paycheck and help ensure a comfortable future. More >
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