I need help!! my debts seem to keep piling up more and more each month... i have heard about credit councelors and i wanna know if that is a wise choice to make.. or can anyone help me with some advice plzz :)
2006-07-10 07:16:58 · 10 answers · asked by diamondprincezz456 4 in Business & Finance ➔ Credit
You need to sit down and go through everything that you usually buy. for everything you can go without, cut down on spending money on it and use that money to pay your bills. If you have credit cards you can call the company and set up a payment plan that fits your needs/income. They are usually very helpful when someone shows that they actually want to pay. You will have to make serious sacrifices and commitments if you really want to fix your debt. good luck to you! :)
2006-07-10 07:24:06 · answer #1 · answered by jestay 2 · 0⤊ 0⤋
Avoid credit counseling as they will 1) hurt your credit rating 2) not help you with the REAL problem.
The REAL problem is your inability to control your spending. I'm not trying to be mean, but I think you can probably admit that it's true. It's the same problem I had when I had debt. I wanted stuff and didn't want to wait for it, so I charged it. I didn't really have the money, but it satisfied my desire.
So, how do you get out of debt? Here are some thoughts:
1) Live on a written budget and use cash
2) Live below your means
3) Learn to tell yourself 'no' (i.e. delay the pleasure of spending)
4) Sell stuff
5) Get extra jobs
I hope this helps. Contact me directly if you'd like specific help.
Scott....
2006-07-10 08:23:17 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Most of these agencies in fact charge fees and are not a good idea. Look online for calculators and other sites to help you manage your debt down. (One reference below).
There are some simple (if painful) steps you can take to start getting your costs under control. The first is to eliminate your credit card debt. To ensure you don't create more debt, cut up every store card and credit card you have. It makes life less convenient, but it forces you to spend only what you have.
Next, write a budget for ONLY the things that are absolutely essential. That's food, rent/mortgage, travel for work.
If you are in debt, you've lost the luxury of spending on ANYTHING that you don't need to survive. That includes:
Cable TV, CDs and DVDs, movies (including rentals), eating out, buying presents for anyone (send a nice card instead), new clothes or shoes, unless required for an interview or work. A wedding or special occasion does not count as a fashion emergency! No cigarettes, no drink, no nights out in bars.
It'll feel pretty much like being in prison - but the prison sentence ends once you have cleared your debt.
Pay off MORE than the minimum payment on any credit cards. Paying the minimum will cost you thousands of extra dollars in interest.
Once the cards are paid off, you can start using ONE card again (no store cards, just a VISA or Mastercard), BUT you must pay the whole balance off every month - you never get to leave a balance on your card again.
If you are really struggling with mortgage, bank, credit card companies - call them all and tell them you are in real trouble, and you need them to set up a realistic repayment plan, based on your income. Be prepared to show them the budget you've put together so they understand what you have coming in and what your commitments are going out. Most financial institutions will work with you to get you out of debt.
2006-07-10 07:32:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Great question. This is from Clark Howard's website (money guy in ATL)
"To find a legitimate counselor, contact the National Foundation for Credit Counseling, at www.nfcc.org or call 1-800-388-2227."
There are some bad ones out there, but this number and site should help.
Good luck!
2006-07-11 03:50:30 · answer #4 · answered by Vosot 3 · 0⤊ 0⤋
Have you seen Suzie Orman,
she has a very cool website with great info, before you go to credit counselor, go to a bookstore, and check Suzie Orman's books. She has a book "Young, Fabulous and Broke". $16.
Her top suggestion would be to pay off debts with the highest interest rate. Any cash you can come up with pay those first. And dont use those cards that have high interest.
Live by this motto, if you cant afford it with cash, then you cant afford it. The credit counselor, will just force you to budget, and you have to pay for that service @ a high rate of interest too, so learn to budget your cash flow and you will have money.
2006-07-10 07:30:44 · answer #5 · answered by Veronica 2 · 0⤊ 0⤋
Join a Credit Union. Most Credit Unions have credit counselors and do not charge their members for the service.
2006-07-10 14:01:52 · answer #6 · answered by John H 4 · 0⤊ 0⤋
Don't pay money for what you can do yourself. Call your creditors and ask them what you can do to reduce your payments until you are able to get caught back up. They may reduce fees and whatnot if you are willing to work with them. That is the safest way, as long as you are paying something...they shouldnt hound you.
Good Luck!
2006-07-10 07:21:36 · answer #7 · answered by skib 2 · 0⤊ 0⤋
Make sure you get with a non profit organization, the others will put you deeper in debt!
2006-07-10 07:19:42 · answer #8 · answered by whoanelly00 5 · 1⤊ 0⤋
i doesn't hurt to get advise...particularly before damaging yourself further...if you know someone who's good with $, ar a bank manager / mortgage broker may be able to help you...otherwise use caution before signing anything
2006-07-10 07:20:50 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Spend less than you make.
2006-07-10 07:19:02 · answer #10 · answered by muskeagle 2 · 0⤊ 0⤋