Debt Q&A | CentSai Q&A

Debt

11 months ago
54
0
Financial Expert
Peter Neeves
Asked by: Peter Neeves

There are two basic methods people use to determine which debt to pay off first. Some people advocate paying the highest interest rate debt off first. They advocate doing so as this will save you the most money the fastest. Others recommend the "snowball" approach. In the snowball approach you pay the smallest debt first, working your way through your debts from smallest to largest. Snowballers advocate this approach as the quick success of seeing debts gone motivates you to continue - you get some instant gratification from seeing little debts gone and may be more likely to continue with debt reduction. Which method do you prefer and why?

0 answers
    1 year ago
    96
    5
    Peter Neeves
    Asked by: Michelle

    I'm not sure whether I should be saving for a rainy day or paying down debt? How do you know what you should focus your financial effort on? If I'm paying $300 per month on debt reduction (credit cards and line or credit) and saving $200 every month should I focus on paying down the debt first and then work on the saving?

    2 answers
    1 year ago
    23
    0
    Peter Neeves
    Asked by: Melisa

    How does the reducing balance amortization method on student loans work?

    0 answers
      2 years ago
      61
      1
      Peter Neeves
      Asked by: Eric

      Has anyone used any strategies for settling debt? Would love to know your strategies in hopes of helping others in the same position.

      1 answer
      2 years ago
      63
      1
      Peter Neeves
      Asked by: Allison Martin

      Where can consumers learn more about illegal debt collection practices? How can they report debt collection agencies that violate their rights?

      1 answer
      2 years ago
      36
      0
      Peter Neeves
      Asked by: Allison Martin

      Do creditors consider goodwill letters when attempting to remove late payments from your credit report?

      0 answers
        2 years ago
        36
        0
        Peter Neeves
        Asked by: Allison Martin

        Is it a good idea to settle old collection accounts for less than what's owed? Will doing so improve my credit score?

        1 answer
        2 years ago
        48
        0
        Peter Neeves
        Asked by: Hannah Jane Parkins

        If I have a joint account with someone who has debt to another bank (I was unaware when signing up for the account -- lesson learned!), will I be responsible for his debt?

        1 answer
        2 years ago
        30
        1
        Peter Neeves
        Asked by: Nile Godfrey

        Are there better, or different ways to get out of debt depending on age, and economic status?

        1 answer
        2 years ago
        43
        0
        Peter Neeves
        Asked by: Kaia A.

        I've heard different things about whether medical debt affects your credit score. Does it?

        2 answers
        2 years ago
        30
        0
        Peter Neeves
        Asked by: Lily Chait

        What percentage of an investment (such as a car or house) should you have and what is a safe amount to take out a loan for?

        1 answer
        2 years ago
        53
        0
        Peter Neeves
        Asked by: Kevin Kelly

        Is there anyway to negotiate a lower interest rate?

        1 answer
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