Paying Off Debts Utica NY

A reader with credit card debt wants to know whether his repayment plan will work.

Budget & Credit Counseling Svce
(718) 295-1313
55 5th Ave
New York, NY
 
Paralegal Debt Recovery Solutions LLC
(585) 621-2607
Po Box 16626
Rochester, NY
 
Alliance Bank
(315) 280-6428
160 Main St
Oneida, NY
 
Consumer Credit Counseling
(585) 546-3440
50 Chestnut St Ste 1
Rochester, NY
 
Credit Advocate Counseling Corp
(212) 260-1450
237 1 Ave E 14th St
New York, NY
 
Roots & Wings
(845) 255-2278
12 Ramah Lane
New Paltz, NY
 
Credit Counseling
(212) 777-7377
224 Thompson St
New York, NY
 
New York State
(585) 258-4505
109 S Union St
Rochester, NY
 
The Berkshire Bank
(845) 294-6151
P.O. Box 469 ,2 South Church Street
Goshen, NY
 
Sekharan Raja N
(585) 272-7007
2540 Brighton Henrietta Townline Rd
Rochester, NY
 

Paying Off Debts

Provided by:

Q: I have three active credit cards. My VISA balance is $1,726, MasterCard is $330 and First Premier Bank is $248. I was thinking of paying VISA just the minimum monthly payment for a while. I was thinking of sending MasterCard $100 every month to keep the balance at a manageable level. And I send Premier Bank $20 every month.

In your opinion, is my plan a smart one and should I keep following it? Thank you.

A: Your plan seems fine since you only owe a total of $2,304. You should be able to knock out this debt very quickly, especially if you get a little more aggressive and try to pay $200 toward the debt each month, which would help you pay it off within 15 months if you don't add more debt to the cards.

(Editor's Note: In most cases, you'll be able to cut your debt faster by first paying off the debt carrying the highest interest rate. Most credit counselors recommend prioritizing your repayment based on the interest rate - highest to lowest. However, this reader didn't mention which of his credit cards has the highest interest rate.)

I might try this approach. Pay half toward First Premier Bank ($124 or more) when the next payment is due and pay the minimum required payment to the other two accounts. In two months, First Premier will be paid off. Then do the same with the MasterCard account paying $165 for two months in a row and paying the minimum Visa payment. Once the MasterCard debt is paid off you can focus totally on eliminating the Visa balance with a monthly payment of $200 or more....


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