Paying off credit card debt.QA I'm a young, single, recent college graduate and am saving up for a down payment for a house, I'm contemplating if I should instead use my savings to pay off my credit card debt Credit card debt is an example of unsecured consumer debt, accessed through ISO 7810 plastic credit cards. Debt results when a client of a credit card company purchases an item or service through the card system. . Seeing my current social status, which option would be a better investment? S. Jartu Via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the A Homeownership Is one of the cornerstones to building wealth, so kudos to you for seeking to buy your first residence as a recent grad about to enter the workforce. Without knowing any specifics about your debt situation, the general advice would be to continue to save for a down payment on a home and to also pay down your credit card balances. You should use a structured approach to reduce debts. Start by paying the smallest balance first and progressing to the largest. As you eliminate one debt, use the cash surplus to pay off the next debt. If you have annual fees and double-digit interest rates on your credit cards, negotiate with creditors for lower rates and no fees. Or apply for a lower interest rate credit card and transfer the balances. As long as you are diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d about making payments on time over the next six months and maintain good credit standing, you should qualify for a mortgage at a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. interest rate. Hake hake: see cod. hake Any of several large marine fishes (genus Merluccius) usually considered part of the cod family. Hakes are elongated, large-headed fishes with large, sharp teeth, two dorsal fins (one notched), and a notched anal fin. sure you don't close out your credit card accounts, since this could work against you when applying for a mortgage. Also, seek alternative financing sources such as grants, mortgage assistance, or low down payment programs available for first time home buyers through banks and state housing authorities. Mail your money management questions to Money Matters, BLACK ENTERPRISE 130 Fifth Ave., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011 or send an e-mail to brownc@blackenterprise.com. |
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