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Drowning in debt

Asked by frivolouspursuit about 1 year ago, 2 answers.

We have a mortgage of $60K, credit card debts, 1 student loan, a land loan and about 10K worth of medical bills. What is the fastest, smartest way to pay off the other bills and leave us with the student loan and mortgage only? We're almost out of the land loan, we'll have it paid off in a month! But the others... what do I do to get them gone?

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grilled cheese and turkey sandwich Answered by foodie on Oct 13, 2006, 05:32PM
| 13 answers.

I was reading 'money magazine' recently (I don't read it regularly, happened to pick it up because the cover story sold me).

Anyway, the recommendation I read was this:
1) pay off highest interest balances first - credit cards fit the bit here
2) pay off bigger chunks on those bills to get a better sense of accomplishment as you pay them, so that you'll be encouraging yourself to spend / save / and pay the bills wisely.
3) start & stick to a budget process - try to avoid unnecessary expenses...the example I've read a few times now has been starbucks lattes, and I know I'm guilty of that one.
4) pay off the low interest / tax deductible stuff last. That way, you get the biggest break on your taxes on your way to getting out of debt.

Good luck.

Answered by thomas_82 on Aug 04, 2008, 04:08AM
| 9 answers.

You can go for a debt consolidation loan where you can consolidate all your debts into one single payment of your loan or you can go for a debt management plan wherein your debt counselor would provide you with a debt repayment plan according to your amount of debt and income.

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference.

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