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What is the most effective and fastest method to eliminate debt?
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12 Answers

+117 votes
 
Best answer
First, cut up your credit cards. Then, make the largest payment you can afford on the debts that you have until they are gone. The interest will kill you!
by (4.2k points)
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How deep are you in debt? File for bankrupcy, sign your life over to the bank and the government. They will reposes everything you own. You can start over with absolutly nothing to your name. QUIT BUYING ON CREDIT!!! IT'S NOT WORTH IT!!!
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You might want to read or listen to the book "The Millionaire Next Door"
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0 votes
sell the balance to a creditor normally some one can take the debt from you at a lower rate.collectors normally accept lower amount .
by (4.4k points)
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First, stop paying with credit cards. This is an easy trap to fall into, and most people do it at some point or another. Second, start paying off those debts with a higher interest rate cause they'll end up costing you more money in the long run. Pay MORE per month than the minimum payment amount is. After that card/item is paid off, keep paying the same amount of money on your lesser debts. . . For example, let's say that you have a Visa that you owe $2000 at a 20% interest rate. (For simplicity's sake, I'll use round numbers.) If you have a Discover card with $2000 debt at 10% interest, you'll still want to pay off the Visa card with the higher interest rate first. If the Visa card has a minimum monthly payment of $50, you should pay AT LEAST that amount every month. Meanwhile, you're still paying the minimum payment on the Discover card. Once the Visa card gets paid off, keep paying the minimum amount on the Discover card PLUS the amount that you had been paying on the Visa card, since obviously, you had been able to afford to make both payments.. . Oh, and if it absolutely comes down to it, forget about paying off your credit cards in order to make your mortgage/rent. You would rather have a low credit score for a few years than be homeless. . . If you're interested, you can visit http://clarkhoward.com He's a finance guru and deals with stuff like this ALL the time. You can even call him and get advice if you like.
by (4.5k points)
0 votes
dont buy sh*t
by (4.6k points)
0 votes
The ONLY way to get rid of debt is to pay it off...unless some rich relative who loves you dies and leaves you tons of money...but I would rather go with paying it off
by (4.3k points)
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You may need to consolidate your loans. Or if your debt is not huge, pay of the credit cards with the highest interest rate. . . Once those are paid off, take the money you were paying on those and add it to what you are paying on your next highest interest rate card.. . If you can refrain from using your credit card, you'll be debt-free much sooner. . Suze Orman has a much better explanation and action plan.
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depends on how bad your in debt you can do one of two things (1) claim bankruptcy but try to make that your last resort . or (2) a consumer's propsel the company's and goverment won't take anything of your's then.
by (4.4k points)
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makin another loan
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