Yeah, two new cars here as well (one 2003 & one 2004- one because a lease was up and the other because it would have cost more to fix the old one than just to buy a new model), so I can't wait to get a gander at my savings in about 4 or 5 years from now...<br><br><br><br>[color:red]C'mon...you know me.</font color=red>

If I may change your plan slightly. The crybaby dumb@ss should do this:<br><br>-Find the credit card with the lowest interest rate.<br>-Transfer all of her other balances to that card.<br>-Cut up all other cards.<br>-Get rid of the car, the cable, eat cheaper food, and use that extra money to pay off the low interest credit card. <br>- once paid off, cut that one up too<br>- once student loans are paid off, then plan for car, credit card, house, etc.<br><br><br>

Here's the thing: paying off credit cards is like losing weight. You need to have small victories or the momentum will quickly be lost. That's why I advocate paying off the cards with the smallest balances first. That way you can see prgress right away, which fuels the desire to keep going. <br><br>In other words, suppose this is her situation:<br><br>- Clothing credit card, balance $700, APR 19%<br>- Electronics card (Best Buy) $1200, APR 19%<br>- Furniture card, balance $2700, APR 22%<br>- VISA card, balance $7,000, APR 13%<br><br>In no way would I attack that VISA card first. I would pay off the lowest balance cards first, regardless of the interest rate. That way, she can have wins (paying OFF a card) which helps build momentum and a feeling of success and accomplishment. <br><br>****************<br><br>

Did someone say something about running up the credit cards?<br><br>"Visa reported Saturday that credit and debit card usage soared 15.5 percent on Black Friday over the same day last year, amounting to $4.1 billion in spending." <br><br>Ok, ok...... it's not too bad after all. Only $2.1 billion is actually credit usage . Of course, that's just one card company. Scary.<br><br><br>

Putting the balance on the cards with the lowest rate is a good move however, but only if she'd take the money she was paying those other cards and puts it towards paying off that one remaining card. It will still take a long time to pay it off, but you're losing less money in interest along the way. She should also call these companies and negoitiate for better rates, a lot of time they'll offer it if you just ask and let them know your plans.<br><br>The trouble a lot of people find themselves in, is they make a move like that, then spend the money they free up and get themselves in deeper.<br><br>

<blockquote><font size=1>In reply to:</font><hr><p>Putting the balance on the cards with the lowest rate is a good move however, but only if she'd take the money she was paying those other cards and puts it towards paying off that one remaining card<p><hr></blockquote><p>Sure. That's providing that she can:<br><br>a). Open a line of credit large enough to handle the other card debt.<br>b). Get an APR that's low enough to make it work.<br><br><blockquote><font size=1>In reply to:</font><hr><p>The trouble a lot of people find themselves in, is they make a move like that, then spend the money they free up and get themselves in deeper.<p><hr></blockquote><p>Yep. I agree.<br><br>****************<br><br>

I used to be firmly in the pro-credit card camp. After all:<br><br>1.) All the free stuff! Points, bonuses, miles...why not?<br><br>2.) The ability to dispute charges through chargeback rights<br><br>3.) You NeeeeeD a credit card to rent cars and stay at hotels<br><br>What I quickly realized, however, was:<br><br>1.) I get points I can redeem for travel or merchandise through my bank's debit Visa, and my PayPal debit Mastercard gives me 1.5% cash back on every purchase. <br><br>2.) I only shop at reputable merchants with an established track record, so I'll never have anything to dispute<br><br>3.) I have rented cars and stayed at hotels with my debit card just fine!<br><br>A debit card will do everything a credit card will except go into debt!<br><br>

The difference is, any unauthorised charge to a credit card, results in the provider being out of pocket while the issue is resolved. Unauthorised charges to a debit card results in you being in possible dire straights until the bank credits your account - this can be stressful.<br><br><br>I also noted nobody commented on the companies themselves:<br>"Been turned down for a loan. Don't let others keep you from what is rightfully yours. Contact our loan advisors".....Yup folks you have a right, nah, an obligation to have an huge level of consumer debt!! :)<br><br>

<blockquote><font size=1>In reply to:</font><hr><p>Unauthorised charges to a debit card results in you being in possible dire straights until the bank credits your account - this can be stressful.<p><hr></blockquote><p><br>Depends on your bank, my debit card has a line of credit attached to it, so if I'd overdraft it, it draws on that line of credit. To which I can call the bank, tell them of the fraudulent activity and have my money redeposited.<br><br>

Me too.....but not everyone is this financially astute.<br><br>