I am 27 yrs old and make 35K, I currently have $12K in debt...How can I get out of it quickly and start saving. I feel like such a loser sometimes when I see my friends making more money and living debt free. Right now I am living with my parents until I can make more money.
2006-07-04 07:19:23 · 11 answers · asked by James D 1 in Business & Finance ➔ Credit
I just want to say I feel like I am in the same position with you right now. I am 26 yrs and my debt is way worse than yours. I get very sad and pissed of at myself and the debt is on my mind every single day.
I can't really compare my self to others, because I chose to be careless with money and bought this upon myself and there was no crazy circumstance that put me in this situation. I was just extremely careless about money.
We just have to take ourselves out of the muck one step at a time. Stop charging your CC, and start attacking the the debt. It is that simple and yet so hard at the same time.
All my disposable income goes towards debt, because I am committed to getting out of debt in a year. I make ok money , but I look for other sources of income, and sell things on ebay. Its ambitious but it can be done...
There's a get out of debt calculator which I found on Motleyfool website www.fool.com . It was a good place for me to start.
Also check out www.daveramsey.com
Obviously, one has to get over the need to buy things they can't afford either becauesof a need to impress or a lack of discipline. One of the biggest contributor to getting out of debt is learning how to discipline myself. I have in the past always felt I had to have everything I wanted, but not anymore. Sometimes its hard, but it just has to be done. I can't wait for the moment when I am not lugging the debt around. It feels like a dead body on my shoulders. I wish you all the best in your journey out of debt.
2006-07-04 07:43:28 · answer #1 · answered by Tinnaaa 2 · 1⤊ 0⤋
There isn't a quick way, per se, to get out of debt. There are proven steps that you can take to eliminate the debt. Here's an overview:
1) Promise yourself never to borrow money again (except maybe to buy a house). Credit hasn't done you any favors and it's not a practice that the rich use to become wealthy.
2) Start using cash instead of credit cards. Put your credit cards away until you can get some money in the bank (i.e. $1,000) to handle emergencies while you're paying off the debt.
3) Get on a written budget.
4) Take an extra job (i.e. deliver pizza) or two to excelerate paying off your debt. Also, consider selling stuff.
Contact me directly if you want specific help. I'm in the process of developing an on-line course that will help people get out of debt. I'm looking for people that would be willing to test the course and give me feedback. There would be no cost to you.
I hope this helps.
Scott...
2006-07-04 11:38:16 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Your debt is not much over the national average, unfortunately, but that doesn't mean it's not better to get rid of it. So cut back on the luxuries and "fun" purchases and put large amounts, as much as you can afford, on the debt each month. If you are living with parents, you should surely be able to find ways of reducing current expenses and still have enough to get by. Start saving a little now, along with increased debt payments, maybe even $100 a month. As your savings grows, even if slowly, it will be encouraging to you also.
2006-07-04 07:24:08 · answer #3 · answered by surlygurl 6 · 0⤊ 0⤋
Get in a debt management program. A reputable one. I enrolled in money management inc. Been in for almost 2 years. Working out well... got interest and other charges reduced and I've paid off several cards. Still working on saving! It's hard to get started! 35K is nothing to sniff at. The biggest step is to put the money in savings before you have a chance to spend it. If your employer has direct deposit, start a savings account draft so you never even see the money and it's saved!
2006-07-04 07:28:07 · answer #4 · answered by Bethany 4 · 0⤊ 0⤋
Here are some links which would help you:
Debt Consolidation - Get Out Of Debt
http://www.askaquery.com/Answers/qn1643.html
How to Hire a Debt Counselor?
http://www.askaquery.com/Answers/qn1584.html
What is Debt Relief?
http://www.askaquery.com/Answers/qn1583.html
Debt Management and Building Wealth
http://www.askaquery.com/Answers/qn1581
2006-07-11 00:13:04 · answer #5 · answered by Ben J 2 · 0⤊ 0⤋
Well, you really should not got a loan etc. that way you won't get into debt. Can you pay off your debts earlier or something like that? Some flexible loans allow you to do that.
2006-07-04 07:23:15 · answer #6 · answered by ictl 4 · 0⤊ 0⤋
Your fine, just get your debt consolidated.
2006-07-04 07:22:33 · answer #7 · answered by Fitty4ex 3 · 0⤊ 0⤋
$12,000 in debt not that bad but only making $35,000 is..You need a better job
2006-07-04 07:22:29 · answer #8 · answered by dwh12345 5 · 0⤊ 0⤋
What type of debt is it?
2006-07-04 07:23:03 · answer #9 · answered by C B 6 · 0⤊ 0⤋
There is some useful advice here.
2006-07-06 22:38:13 · answer #10 · answered by Anonymous · 0⤊ 0⤋