60K in credit card debt. Annual salary approximately 130K. Able to make minimum monthly payments on all cards, but never significantly reduce overall debt.
My credit card debt ranges from Nebraska Furniture Mart to Home Depot, Macy’s and Chase. Now that I make more money, I can pay the minimums, but I want to get rid of the debt all together and start saving for retirement. I don’t want to keep paying on the cards forever. What is the fastest and most cost effective way to eliminate unsecured debt? There are so many options out there, consolidation, payment plans, Chapter 13, etc. I have no idea where to start. Thanks.
The fastest way out of debt is a chapter 7 bankruptcy. It will eliminate your debt in about 90 days or less. But I’m not convinced you are a good candidate for that approach.
The desire to get this debt out of the way quickly so you can start saving for retirement is a smart thing to do.
As you mentioned, there are a number of ways to approach getting out of debt. The key is to match up the right option with your current situation and goals.
Without knowing more about your situation I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth, How Do I Get Out of Debt Quickly? Change Your Mindset, and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Then use the free How to Get Out of Debt Calculator to review your options.
Once you’ve identified a company you want to work with, then follow my step-by-step guide on what you should look for and expect from a good debt relief company.
Please post your responses and follow-up messages to me on this in the comments section below.