Consolidate Your High Interest Debts

I currently have a credit card target has reached its limit of $ 500 and is now just earn interest at a very high rate (20%) I also have a MasterCard bank in America with a participation rate of 14%. I want to close the account target .. Is this a good decision to transfer the target balance at the MasterCard?

Please do not "consolidate" your debt. You will just end up owing more money and for a longer time. You probably can not get rid of all your debts at once, but you may be able to do in a (relatively) short time. Of course, this depends on the amount of debt and your income.You can start saving by making a garage sale and sell everything you no longer use and you should consider getting a temporary part-time until you have paid for everything. Here's a plan that will help you. If you work the plan, the plan of work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool that will free you from ever having to worry about money again. Put everything in your budget. Especially those annual bills, semiannually, quarterly or as vehicle registration, insurance, etc. Give every dollar you bring home the name of where it goes. Add an emergency fund "category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from entering into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. In this way it moves automatically and you do not even worry about it. You need to reduce your spending and live on less than you earn.

2.First get all debts on you and never pay late. Stop using your credit cards immediately. Do not take more debt. Credit cards are like quicksand only the death is much slower. Make a list of all your debts in order of highest interest rates the lowest interest. Use only cash for your spending from now on.

3.Pay the minimum due on all your debts and put your money to pay the highest interest first. After that we got paid, you put the money you pay on debt # 1 (the minimum amount and additional payment) towards debt # 2. Who will pay debt # 2 faster. When this is paid, you put all three payments towards card # 3 and that we get paid quickly. For example:

Begin:
repayment of debt # 1 (plus interest): minimum payment + extra
Debt # 2 (middle interest): minimum
Debt # 3 (lowest interest): minimum

Debt # 1: paid
repayment of debt # 2: minimum payment Debt # 1 + minimum payment Debt # 2 + extra
# 3 of the debt: the minimum payment

Debt # 1: paid
Debt # 2: Paid
Debt # 3: the payment card Mimimum # 1 + minimum payment from Debt # 2 + minimum payment Debt # 3 + additional payment.

This way, you will get paid on time and pay less interest. It will also help towards rebuilding your credit because you will not have any delay. This works no matter how many different debts you may have.

4. After obtaining all your debts paid, add to your emergency fund until you have 6-12 months of income saved. Put that money in an emergency fund of liquid money market fund or a Bank of America will not CD so if you need money you can withdraw without penalty.

5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for vacation, holidays, a large screen, or meals out, whatever goal you want. Remember to enjoy your life.

5b. When you have your emergency fund in place, start saving for your retirement. Join the 401 (k) plan work and contribute the maximum. Your employer dr.