Thursday, September 5, 2002
More Bang for Your Buck: Getting Out Of Debt
Maxed out credit cards, high intrest rates, looming debt... if your bills are keeping you up at night, you're not alone.
(WSVN) Getting out of debt.. it's on your to do list so why is it so hard to do?
Suze Orman Financial Expert says, "Most people who have credit card debt don't even know how much they have."
The reality- you have to face it to erase it, and who better to do that than best selling author and financial expert, Suze Orman.
Orman says, "Open up your credit card statement. List every single company that you owe money to, from the highest interest rate down to the lowest. Not from the amount you owe them. Highest interest rate to lowest interest rate."
Next step, Suze says, if you're paying more than 6.9% on *any* card, it's time to negotiate.
Grab the credit card, turn it over, on the back there's a phone number, call it up and say-- let's talk.
"This is what you should say to them. I'm calling to close my account. The person on the end of the phone will say, why? and you will simply say, because I've gotten a better interest rate somewhere else," says Orman.
Insist on 6.9% or below. If they can't do that, transfer the balance to someone who will.
then pay the most you possibly can on the highest interest rate payment and then pay the minimum plus ten dollars on each additional card.
"When the first one is paid off, take that amount of money that you were paying towards that card, and pay it towards the second. When the second is paid off you'll take what you would pay towards the first and second and pay it towards the third, and before you know it you will be out of credit card debt," says Orman.
And keep in mind-- every dime, can save you time, so don't wait for that monthly statement.
When you have an extra twenty or even a ten, drop a check in the mail-- and watch your debt disappear.