Getting out of Debt - Little by Little

Credit Cards

Before I even went through bankruptcy I went through American Financial Solutions. This is a company that offers credit counseling, education on debt consolidation and debt consolidation. I had 8 credit cards I believe when I went with this company. In the year I was with them I ended up paying off three credit cards and was on track to pay everything off within two more years. 

They contact your credit card companies and let them know you are going through debt consolidation and get them to lower the interest rate and close your credit card. You can no longer make any type of purchase with that card. 

They consolidate all cards to one payment per month through them and then they pay your creditors for you.

If you don't want to do something like this, try calling your creditors on your own. See if they are willing to work with you on lowering your interest rate. Once you do that:

• Figure out your balances on all cards
• Put in order from least amount owed to most
• Start paying the minimum balance on all other cards except the lowest balance card
• Pay at least the minimum and then extra in order to pay quicker
• Once the smallest is paid off, use the money you were using towards that card and apply to the minimum payment you are already paying on the next. Keep this going until all your credit cards are paid off.

Its nice to see things get paid off and keeps you motivated to keep paying the others off!!