Debt

[Timberlan127]

Cut out all the little extras for a while and spend as little as you can so you can pay off your debt. It's not easy but it is rewarding once you get there.

[quietpal]

What I am learning is there are two things you should do: 1)lower your debt and 2)increase your income. What I mean by lowering your debt is eliminating any bills that aren't necessary (ex., cable, gym membership). If you've done that, then that's when the second part comes into play. You can only save so much but if you increase your income, you have the potential to save even more. You can do this by taking on a part-time job and continuing with FC of course. You can also search google for other online money-making opportunities. No matter what your income level is, it is important that you pay yourself first, even if it's only $1. That's how you will start to build any kind of savings. You can also put your change in a jar and label it "savings." The bottom line is you need to have a plan. For example, how much can you save each month, each week, etc.? Write down all your expenses for the month and total them up. Then write down all the income you make for the month and total that up. This will help you to decide how much you can pay yourself. Focusing on the bills will come after that. Just remember, you take control of the money, don't let the money take control of you.

[sfreeman8]

Can someone please share with me how to get out of debt. I am robbing Peter to pay Paul.

First of all, make a budget of all income and expenses, including everything you buy each month, even if it's a lottery ticket, lunches, even coffee if you buy from coffee shops. You'd be surprised what you can cut just from putting everything in black and white.

If it's credit card debt, what I did was follow Suze Orman's recommendations AND Dave Ramsey. I had high credit card debt through hubby's hospitalization for a heart valve replacement and tripe bypass. I used to make $3500 a month and it was no problem making extra payments. Then along came a new way the work was being done plus offshoring of the good work so my pay went down and kept going down until I was only making $1000 a month. 

I called each CC (4 of them) and set up hardship debt repayment plans (I had $35,000 CC debt because of paying all the bills while hubby was recovering; all household expenses, insurances, and taxes). I cancelled everything I thought I could do without, downgraded the cable, changed cell phone providers for lower monthly payments (cell phone was needed for hubby's work), cashed in life insurance policies and took out lower benefit policies, sold whatever I could on ebay, etc.

The companies gave me 5 years of paying the same amount every month. It was hard but I was making it. Then I lost my job due to no work, went on unemployment while looking for another job, which never materialized, so took early retirement. Once hubby could go back to work, he took over the household expenses again except for groceries, lights, and cable.

I paid off ALL the CC's a little early, but I still have one card that I keep only for emergencies and never went on the plan with them and it stays in a drawer, never in the wallet. Every extra penny I get now goes on that CC to pay it down. It had a $6,000 balance and I now have it down to $4500. It would be paid off faster but they upped my interest rate from 9% to 22% thanks to this recession and changes in the laws that Congress made 2 years ago regarding banks and CCs.

The only problem with the hardship debt programs with CC's is...your credit is ruined. My FICA was 750, but is only 645 now and it's tough to get the score back up, but maybe that's a blessing. 

Good luck. I hope some of my suggestions help. It'll be tough but you'll be proud of yourself and a big weight will be lifted from your shoulders. 

[monnee]

Spend less, save $$$$$, and pay bills on time.   

[hotcocoa]

My dad had a routine of paying everything in cash, he never owned a credit card.  He lived modestly and was very exact about his finances.  Yet, he always paid all his bills and was able to put a little away for my sister and I.  Upon his death, we were able to sell his house and split some fair money.  He also gave us his cash out of the bank.  He was a very careful man with his money and debt was not part of his headaches.  Thanks, Dad!

[cathy37]

I wish I could tell you how to get out of debt.  I think that we will always have some kind of bills.  You have to have a car and a place to live.  Something is always going to break down and you have to get it fixed.

[gpcdon]

A few strategies that helped me were List all of your recurring expenses and cut the ones you aren't using. Really think if you have been using that Netflix subscription, gym membership, magazine subscriptions. Next, list your debts and note their balances and the interest rates. To save the most money, you want to pay off the debt with the highest interest rate first. Others recommend paying off the lowest balance first for the boost it provides. In addition to the minimum payments you are making, take the extra money you saved from cutting back on some expenses and add that amount to your lowest balance or highest interest debt. Once one of the debts is paid off, continue making that payment, but now divert it to the next lowest balance or highest interest rate. Finally, try not to take on new debt. Try to live within your means and know that using a strategy like this will get you where you want to be, if you give it time and exercise patience.

[alina6]

You need to put yourself on a budget. Don't spend more than you make and try to spend less than you make so that you can start paying off outstanding debt. It will mean that you may have to do without some things but that is the only way to get out of debt.

[bigfoot951]

I think it is all about the mindset and unfortunately when someone has a mindset that got them in debt...it is really hard to get out of debt.  Bottom line is cut out unnecessary expenditures.  This could include a lot of things like eating out and cable tv.  Most people just aren't willing to cut down on their monthly expenses.

[wadee1958]

Win the lottery?

im in a same boat also, i wish i can win the lottery.

[inertia4]

Well, you either have to budget your money, get a professional in to help with the budget or declare bankruptcy.

[moon29]

you need to sit down and make a strong budget.  i don't know your personal situation but i have 120000 in student loan debt im a stay at home parent because day care was going to take my entire check for someone else to be with my child and my husband works 60 hours a week as a manager.  we make around 50000 a year with only myself making around 6000 from online working.  we just bought a new house after selling our two big for us house and bought a new car for our expanding family since we only had an obnoxiously small two door which is a pain in the butt when you have children.  now having shared my situation ill explain how we do it.  you cut the fat so to speak.  we haven't had cable since 6 years ago we dont have expensive phones we use tracfone pay as you go and we both use less then a hundred minutes a month so we only have to buy minutes three times a year for our phones and have no land line.  we have high speed internet but no other bells and whistles.  i extreme coupon so we only go to the grocery store once a month and if we dont have a coupon for it we dont typically get it.  i garage sale or use goodwill for our clothing and some months we dont get everything that we want but our bills get paid and we have a warm place to sleep at night and warm food in our stomachs.  you have to decided what is important to you.

[kimberlymgiles]

I am currently facing the same situation. Have you considered bankruptcy? Try a secured credit card to help rebuild your credit. There are many free credit repair agencies available. Debt consolidation is also another option. Good Luck!!!

[InfuseMe1]

Debt is like cancer - really hard to conquer!  Shame so many of us suffer financially these days... wonder if or when things may get better!   

[Tresbn00]

I worked in the finance industry and moved on to a specialty in mortgages. I started putting like minded groups together when I started working in banks at age sixteen for the purpose of utilizing non-producing residential equity in purchasing commercial properties. When I worked with people who were in debt I put them on a reduction plan that consisted of paying off the smallest debts first and then applying that retired payment to the next balance in line. For example: pay off a one hundred dollar credit card with a monthly payment of five dollars. The next credit card (say a two hundred dollar balance with a ten dollar minimum payment) would now get an additional five dollars worth of payment per month until that debt was retired allowing you to put an additional fifteen dollars a month towards the next payment. Stop using the credit cards...only use a debit card. If you can't make ends meet you need to find additional income.