Does Your Debt Need a Diet?

If you had a $2,000 credit balance at 18% interest and your minimum payment is 4% of the balance or $80, it will take you about 9 years and 6 months to pay it off and you'll pay $1,116 in interest. By paying an extra $15 a month on this debt, you would SAVE $694 in interest and pay it off in 2 years and 2 months.

Pay down your debt

Minimum payments are often set very low, so it could be years before you are debt-free if that is all you pay.

New credit card legislation now requires creditors to indicate on your monthly statement how long it will take to pay the debt. Look for that information and plan to pay your debt sooner. How? Paying more than the minimum! You may be able to delete your debt by the end of the year or, at the very least, make a significant dent.

If you have multiple accounts, focus your extra payments on one creditor at a time. Many people like to start with the debt with the lowest balance because it can be paid off the soonest.

However, you will save the most money by starting with the debt with the highest interest rate. If you cannot pay extra on a regular basis, try to do it when you receive periodic income, such as a tax refund or bonus.

Great article at MSN Money

I just found a great article today on MSN Money that I thought I would share. It is titled "4 Recession Regrets--And How to Fix Them." During hard times it is easy to kick yourself for money mistakes you might have made. This article gives some great advice on how you might atone for those mistakes. Just a warning: if you are expecting a miraculous quick fix, you will be disappointed. These are solid tips to help keep you from making the same mistakes in the future. So enjoy the article!



It can be found at:

http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/4-recession-regrets-and-how-to-fix-them.aspx

Controlling Credit Card Debt

Credit card debt can become overwhelming for some families. Here are some ideas to help you get your credit card debt under control. Feel free to pass this along to others not enrolled in Wyoming Saves.

Never ever pay the minimum. If you can afford to pay more than the monthly minimum on your credit card, do it! With $3,000 on a credit card, a 2% minimum payment and 18% annual interest, it takes over 30 years to repay provided you don’t add any new charges. In the end, you pay a total of $10,013 including interest of $7,013. For this reason, federal regulators have encouraged credit card companies to increase the percentage owed for their minimum payments.

Some experts recommend paying off cards with the smallest debt owed first and ignoring interest rates on the other cards. This costs a tremendous amount in unnecessary interest payments. Debts with higher interest rates grow more quickly. By tackling them first, you will pay off debt faster!

Delinquent Mortgage Borrowers . . . what to do

Doing nothing is the worst thing a delinquent borrower can do. And the longer the delay, the worse it gets.

US Comptroller of the Currency John Dugan says, "The record shows that the early stages of mortgage delinquency are the most crucial. The sooner borrowers reach out for help, the more options they have, and the more likely foreclosure may be avoided."

In half of all foreclosures, lenders say borrowers do not make contact with them. Yet, more than a third of those who reach out for assistance are successful in finding alternatives to foreclosure.

Homeowners experiencing financial difficulties can call 1-888-995 HOPE, a toll-free hotline staffed around the clock, seven days a week, by 85 qualified housing counselors from agencies approved by the Department of Housing and Urban Affairs.