How does one get out of debt under a year when you only 1300.00 a month??

Answer 1

You took the first step...you asked HOW you can get out of debt, which is great! Some people want to avoid paying back their collectors, but not you...good going!

First things first, you NEED to view your credit report. Why? Well, most of what you owe is mentioned there (depending on if your creditors reported you), and it will allow you to see exactly what needs to be paid back. PLUS, you can see your credit score, which is vital if you are considering purchasing something huge like a home or car.

Go here to request your credit report: http://www.myfico.com .

It costs about $15+ for one report, but I highly recommend obtaining ALL 3 reports; and don't be surprized if you have different credit scores (300 being the lowest & 850 being the highest) from each; they all vary. Make sure that your name, address, phone number, previous employers, etc are all accurate, because small mixups can cause serious issues in the future. For instance, if your home number is not listed, some creditors may think you are not stable, and may be hesitant to loan you anything. So make sure you double check everything!

Now, you NEED to keep track of your budget!! If you don't, you might end up spending $50 on a pair of cute shoes, rather than making it your credit card payment...VERY HARD!! But, go here to download a budget template. I use this, and love it!: http://office.microsoft.com/search/redir.aspx?assetid=TC010233411033&QueryID=giCArloA_0&respos=3&rt=6

If you don't already have a savings account (shame on you!!), open one ASAP. Just having a checking account won't do you any good in the long run. Put aside 10% from EVERY paycheck into this account. If you're paying your creditors, you must always pay yourself first.

Oh, and begin bringing lunch from home to work. Cancel any cellphone plan that is ridiculously high, and consider getting a prepaid phone.

AND DO NOT APPLY FOR ANY MORE CREDIT CARDS! It shows up on your credit report, and can ruin any chances you may have of becoming debt free.

Oh, and visit Suze Orman's (http://www.suzeorman.com ) site. She's phenomanal when it comes to finances!

Good Luck!

Desi :-)

Answer 2

First, gather all your debt and write down a paper the monthly payments. Second, divide the minimum payments in half. Third, Get a calendar and every 2 weeks write down the bills you are going to pay. Fourth, write out the checks for the amount of the divided payments dating them every 2 weeks. Keep each set of checks in a separate envelope for each bill. Make sure you write the account number on each check for the bill you are paying. Fifth, on the calendar write an amount every 2 weeks that you are going to put away. Start off with say $10, then 2 weeks after that $20. On a separate paper draw a triangle and at the bottom of the triangle on the left hand side write the $10, then go up the triangle doubling your savings until you feel it is tight. Say that amount is $120. On the right side of the triangle work your way back down until you come back to the $10 mark.

That is how you get out of debt.

Answer 3

You will first need to determine what your capacity for repaying debt is (income minus expenses plus debt). You may wish to contact a credit counselor so that they can help you prepare a budget. Then you will know what you can do to pay off debt.

They will look at the amount and type of debt you owe to help you with a strategy for eliminating your debt. If you need more substantial help, then they can help you enroll in a debt management plan, which could provide a lower payment and reduced interest.

You may wish to find a local credit counselor. Here is a directory of agencies by state. Make sure they have a satisfactory rating with the Better Business Bureau.

Answer 4

Cut down to bare basics. For a year it won't kill you. No clubbing, basic foods, no eating out, bag your lunch, no new clothes purchase.
Pick one bill at a time, & hit it with all you can, while doing a little more than minimum on the others. Get rid of the little bills first, it will make you feel like you have accomplished something.
Then you start on your living quarters. Anything you have to pay for, try to cut back on. You pay for electricity? Turn off lights when you leave a room, don't leave the computer on all night. Only use the oven when you really need to. Pay for heat? Cut back to 62 at night & when you are at work. Lower if you don't have animals.
There are a million little things to do to make it work. One at a time the credit card bills will go away. take careful stock & figure out exactly what you need. I have store charges because they don't cost me. But, I don't let them go up, I pay them off in one or two months. Christmas takes a little longer, but no more than 5 or 6. Do you need 3 or 4 Visa & MC cards? I have one MC that is my checking card, & one Discover for emergencies. Speaking of Christmas, make things for that holiday when you are getting back on your feet. A tin of homemade cookies is wonderful to get! I have done that many times, even when not strapped!
Go to it, you will only help yourself!

Answer 5

That's not nearly enough information. You have to calculate your total debt, add in your interest, and divide that by 12. It might not be mathmatically possible.

You need to pay MORE than your minimum payments to make real progress on credit cards.

Answer 6

Don't live beyond your means! And freeze your credit cards in a plastic bag in keep in the freezer until they are paid off.

Answer 7

List every dime that you spend for a month to find he money leaks.

Take a 2nd job.

Answer 8

sell your house and use the equity to pay off the debt.
move back in with your parents so you can save living expenses.
move into a crummy place with about 6 friends.
take a moonlighting job. stop buying almost everything.
like clothes, movies, and stuff.
take a weekend job.

Answer 9

Depends on what you owe, if you declare bankruptcy, you will be debt free in 9 months

Answer 10

1. Earn more
2. Spend less