Debt Reduction

[themartins903]

I probably have posted this in the wrong section, but I'm still learning this site and I'm really frustrated so here goes.

I notice how alot of people have their cc breakdown and 90% of what I see are zero balances (congrats).

If I have 6 accounts that need to be paid on and I, let's say have X=60.00 amount of dollars.. are you paying 10% on each bill to put in a dent or are you focusing on one and paying on that one and then go to the other one?


What do you do in the case that the company wants it "RIGHT NOW" and you dont have all of it. This is not a credit card company. The balance is 784.00 and I received the registered letter today.

Mind you, I "JUST" started with FV over the past weekend and am learning "baby steps" how to live below means. I did my budget last night and from what it looks like I will have $300.00 left over for the month of June(after groc/utilities/etc).

What would be your idea of how to handle this?

Any information is always forever grateful to me.

~Melissa~

[justpeachy92]

I am going to assume the registered letter you got is a bill that you aren't current on. Generally all bill collectors want all the money now, but what I would do is call them to set up a payment plan, agree to the smallest payment they will take, and some will take small payments. I have one that when I made the payment arrangements agreed to $10 a month. You want the payment to be small enough that you know you can easily pay it, then when it is time to pay you pay the small payment plus whatever else you can pay on it. For how most of us pay our debt here, we pay the min. payments and then we put all extra money on one bill to that is paid off, then we go on to the next one.

[Mom23boys]

Originally Posted by themartins903

If I have 6 accounts that need to be paid on and I, let's say have X=60.00 amount of dollars.. are you paying 10% on each bill to put in a dent or are you focusing on one and paying on that one and then go to the other one?


What do you do in the case that the company wants it "RIGHT NOW" and you dont have all of it. This is not a credit card company. The balance is 784.00 and I received the registered letter today.

Mind you, I "JUST" started with FV over the past weekend and am learning "baby steps" how to live below means. I did my budget last night and from what it looks like I will have $300.00 left over for the month of June(after groc/utilities/etc).

What would be your idea of how to handle this?

Any information is always forever grateful to me.

~Melissa~

What we did was take the CC or bill that we had and paid it off first. Then snowball that payment into the next lowest CC or bill owed and continue this way until they were all paid off!

Snowballing is basically taking the payment of the first paid bill and adding it to the next bill and continue this way.

As for as the registered letter goes, I would get in contact with the company who sent the letter and see if you can make arrangements. Inform them of your situation and see if they are willing to work with you. Once you agree to something, make sure you stick to it. Don't let them bully you into paying something that you know you can't afford to pay.