Debt Diet

[The*Empress]

I watched on Oprah and she gave these advices.

1. Calculate debt - How much debt do you really have?
It's time to get real and get going! Once you know your total debt, you can start paying it down.

2. Track your spending, Find extra money.
Cut back on the daily extras and find savings where you least expect them.

3. Look at interest rates, Learn to play the credit card game.
Get expert advice about calling your creditors and lowering those pesky interest rates. With this plan, you can pay off thousands of dollars of credit card debt.

4. Stop spending!!!
Small change can make a difference. Trick yourself into spending less and saving more everyday! (Use coupons).

 

[Endymion]

I watched on Oprah and she gave these advices.

1. Calculate debt - How much debt do you really have?
It's time to get real and get going! Once you know your total debt, you can start paying it down.

2. Track your spending, Find extra money.
Cut back on the daily extras and find savings where you least expect them.

3. Look at interest rates, Learn to play the credit card game.
Get expert advice about calling your creditors and lowering those pesky interest rates. With this plan, you can pay off thousands of dollars of credit card debt.

4. Stop spending!!!
Small change can make a difference. Trick yourself into spending less and saving more everyday! (Use coupons).

Oooh! in addition to "look at interest rates" you may also want to learn the difference between the Effective Annual Rate and Annual Percentage Rate.

If anything at all (or if you don't want to read on EAR and APR), I suggest at least reading about the time value of money.

 

[The*Empress]

well um if I owe $30,000 on college loan and the interest rate is 3.4%.
And they want me to pay $200 every month, and the $80 will go to principal balance, and $120 will go to interest rate for bankers to take most half of $200.
So if I pay $300, instead of $200, then I'll be paying more on principal balance.

So if I pay $15,000 and I still owe $15,000.
Will the interest rate be lower? Like um 1.5%? Or will the interest rates still be the same? Will the bank still tell me to continue paying $200 a month or will tell me I can now pay $100 a month payment?

What about if I owe $5,000, would the loan company still give me interest rate 3.4%?

Right now I am trying to pay the prinicipal balance, the actual money I owe, and that interest rates,,, the bankers are making it hard for me to pay it all back.