My understanding is that the fastest way to do it is to pay off the highest-interest loan first. Also, making extra payments if possible can help. Talk to a personal financial counselor or an accountant and they can help you figure it out together.
Bankruptcy or credit counseling are not as good of options, unless you have no other way.
What%26#039;s the best way to clean up personal debt that does not include credit cards?
Ignore them for seven years and ask credit bureau to remove them.
Other option is to make arrangements to pay them. You can negotiate with them on the repayment. There negotiators are a bit brutal. So be ready to fight for the reduction of the debt. But note, that it will still show on your credit report even after you pay unless you must ask the creditor to send you a written letter stating that they will remove it before you pay them.
Some creditor will accept your money and not remove the bad mark. Once you have paid, they will not remove it.
Remember a written letter from the creditor indicating that they will remove the bad mark before you pay them.
What%26#039;s the best way to clean up personal debt that does not include credit cards?
There%26#039;s a technique called %26#039;snowballing%26#039; that is very effective. Basically you start off by repaying your biggest debt first, ignoring all other debts. Clearing your big debt will free up money that used to go towards repayment / interest, which will then give you more money available to pay off your smaller debts.
No comments:
Post a Comment