We are retired on a fixed income and meet our bills. Due to circumstances beyond our control we incurred a lot of debt and I will be returning to work to repay the debt. In attacking the bills I want to build another cushion first and then allow the savings to grow until I can repay each debt in full. Wife suggests we double the payments or triple depending on how much we make working and pay them down in that way. Which is the best way to approach this? I like the idea of having the control over the money, making some interest on it, until we can discharge the debts.
You can try to pay down your debt either by the snowflake technique of payment, which reduces your debt amount quite fast or you can try to consolidate your debts into a single one.
Snowflake technique is when you make small payments towards your debts rather than paying a large sum at the end of the month. Most creditors charge a daily interest, and thus you end up paying more. Through this method, you will be bale to save money.
In debt consolidation, you can consolidate all your debts into one, and thus make a single payment instead of one. Debt consolidation lowers the interest rate too. Thus, it becomes much easier to pay off your debts, and save some money.
However, if you could have given more details, it would have been more easier for me to provide you a specific solution.
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.