Suze orman and consolidating debt
The move will give you a better grip on tomorrow by reducing your costs today.
Assuming that renting will free up some money, I want you to open two accounts that will help you establish peace of mind: an emergency cash fund and a Roth IRA.
Step 2 – Add to each minimum payment that your credit card company is asking you to pay.
Step 3 – Add up all your minimum payments plus added for each card.
Step 4 – Hopefully the difference between the figure found in Step 1 is GREATER than the figure in found in Step 3.
If so, apply the difference to the card with the HIGHEST interest rate.
When you find full-time work in your chosen field—and you will, stay positive—you can revisit buying a home.
How can we remove these blemishes from our credit reports and improve our scores fast?
One important caveat: When you negotiate a lower payment, the IRS usually counts the forgiven amount (what you're not required to pay) as income, which means that you'll owe taxes on that money.
Q: I've got ,000 in credit card debt, ,000 in student loans, a car payment and an interest-only, variable-rate home loan that will adjust in two and a half years. How will I ever be able to save for today, for retirement, for my sons' futures? A: Your overriding goal must be to stay current on all your monthly debt.
Step 2 – Beginning with the card with the smallest balance, pay as much as you can on that card while paying the minimums on the other cards.
Step 3 – Once the card with the smallest balance is paid off, take the amount you were paying towards that card and apply to the card with the next lowest balance.