how to get out of debt?

Question

i had a consolidation a two years agobut it seems like the consolidation did worse than good. i am in need of all my debts just being paid off, without a head ache.

Answer 1

First, stop buying things on credit. Better still, buy only necessities for a while until you can pay your debt down.

Second, start looking at all your expenses to see where you can cut down. Here's some examples of savings I've made recently:

Shop for auto insurance quotes. Go to several companies and internet sites like Geico and Progressive. Especially go to Costco or Sam's Club if you are a member. Costco beat every other quote I received by $500 a year, for the same coverage that I had prior. The warehouse clubs have great bargains on other services too. They are for much more than just buying stuff cheaply in bulk quantities.

Look at your telecommunications. Are you paying for expensive add ons like caller ID and call waiting. Dump'em. Are you part of some long distance plan with your monopoly phone company. Undoubtedly you are paying too much. Go to www.americom.com to get long distance rates at 3.9 cents per minute with NO monthly service fee or minimum usage requirements.

Are you using an expensive cell phone plan? If you talk less than 200 minutes, you are almost certainly paying too much. Check out prepaid with T-Mobile.

Do you get cable or satellite TV? You probably have some expensive plan with lots of channels you don't watch much. Switch to a cheaper plan or check out the competitor. Is it feasible to go back to getting free TV from an antenna?

Check for other hi-speed internet options. Even if you don't want to switch, if you call your current provider and tell them that company X is offering hi-speed internet for only X dollars a month, they'll probably match it.

Do you eat out a lot or get lots of fast food? Start packing that lunch and cooking more. There are big savings here if that is the case.

Do you have an expensive car with expensive payments? Can you trade in for a less expensive car and smaller payments? And then drive that car for years past when the payment ends. I haven't had a car payment in 3 years and it feels great!

Keep doing this for everything. Ask these questions. Do you need it? Do you need it at that level? Is there a cheaper alternative? Can I get it from a competitor? Can I get my current provider to provide it cheaper?

Make paying off your debts the #1 priority, instead of what you do with the leftover money. Figure out how much you can put to paying off debt every month. Then pay the minimum on all of the debts, except the one with the highest interest rate. Pay that one with a the balance of your allotted monthly money to pay down debt.

Consolidation is only a sugar coating. It makes the medicine a little easier to swallow, but unless you're willing to take the medicine and live below your income level, it won't help.

If you can make this commitment and pay off those debts, then you will have changed your life, because then you can take that money you've been paying to others, and start paying yourself first by saving and investing it for retirement, a down payment on a house, a new car, whatever.

Good luck.

Answer 2

I looked into debt consolidation about 6 months ago, but they were wanting more money than what I owed. I can understand their cut on things, but it was like 140% more. And some I didn't qualify for because I didn't have enough debt!!! Ughh!

Ask your local bank for a loan. Their interest rates are usually 8-12% which is better than most credit cards.

Take the Dave Ramsey's course called Financial Peace. It gives you a lot of common sense, and a step-by-step plan to getting out of debt and start building wealth.

Determine not to spend more than you make. Know where every penny goes, and make a commitment to cut down some unneccesary expenses until you get out of debt more.

Consider taking a 2nd job temporarily. Even for 4-6 months, you could supplement your income by $500 a month. Pizza or newspaper delivery, retail sales, cashier.

Figure how much debt you have paid off in 2 years, and pat yourself on the back. It takes time to dig yourself out of a hole.

Answer 3

I would start with a debt consolidation company as making one payment vs several is easier and secondly they will contact your debtors and try to negotiate the dropping/lowering of interest rates, late fees etc. Good debt consolidation companys and your location or go to the white pages. Good luck!
UPDATED: So sorry I did not read your question properly!! I just know from my own experience that the company that we chose helped us a great deal, it took several years but we got there! I'm sorry then I just don't know as any lender will charge interest so it can all become a bit of a vicious cycle. Maybe a financial advisor so they can look at you income vs your outgoings, lifestyle etc. Sorry I can't be of more help!

Answer 4

Umm, I am pretty sure statue of limitations only protects you when commit a crime (Sorry about that) Guess what two crimes it does NOT affect? Murdering someone (OF COURSE!) And not paying taxes... you still have to pay your debts. If you are in debt, make a budget, and make a list of every dime you spend. You will find somewhere where money is going that it doesn't need to be.

Answer 5

Step 1: Write down exactly what you earn.
Step 2: Write down everything your spend.
Step 3: If sending is not less than earnings, find a way to cut spending and/or increase income.

Until you do this, you will continue to get further in debt. Once you have, apply difference to debt. It sounds simplistic, but its the truth.

Answer 6

debt consolidation

getting out of debt is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is:

http://umgarticles.atspace.com/debt-consolidation.htm

Answer 7

Do the following in order:
Find a job.
Get a checking account
Deposit your check into your bank account
Write check to those you owe money to
Take asprin or something for the headache.

Answer 8

Hi, I think you should meet a debt counselor to get debt relief. A few articles to assist you are:

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

How to lower your debts?
http://www.askaquery.com/Answers/qn1576.html

How to reduce debt : How to lower your expenses?
http://www.askaquery.com/Answers/qn1577.html

Answer 9

Plenty of good advice here.