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Question By
greatman05

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3 People Helped
Default on Debt and use Cash to pay it off
I owe $15,000 in CC debt. In addition, I have a personal loan used for a car in the amount of $8,200 and student loans of around $30k.

I want to pay off the unsecured debt in around 3 years or less. I was going to start on 8 of my credit cards, totaling around 13K. Using the debt snowball method, I would be able to pay off this debt in 2 years at $300/month.

I did a budget calculation and I would be able to have up to $1,345/month in my budget if I were to stop paying the minimums on all of my debt. I wanted to then use this amount to quickly pay off the CC debt I owe.

How feasible of a plan is the above? Would I end up with all of my credit cards closed, even though I quickly paid off the balances?

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Top Contributor
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Think again.

Helpful to 1 out of 1 people

Never, ever let debts go unpaid!!! Always communicate with creditors if you are having a problem.  Pay no less than the minimum on ALL debts the apply whatever you can afford above the minimum to a selected debt to pay it in full and snowball down from there.  I've done that before.  It might take a bit longer to achieve your goal, but you should end up with fewer negatives on your credit report when you show a diligent repayment schedule.  And avoid using the credit cards during this time.  DO NOT CANCEL them!! Just lock them up someplace safe.

Top Contributor
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Always Pay the Min Amount!

Never Miss a Payment ( Late Payments are a No No )

Follow the Plan you have ( Sounds like you have been listening to Dave Ramsey and the Baby Steps )

Get a Second Job ( Dave Job ) to help Pay off the Debt . 

Sell things to Help Pay off the Debt.

DO KEEP The Budget Updated weekly or every other week. 

You Can do this!

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