How to deal with debt?

Question

I have 2-3K worth of debt due to financial problems in my last place living with my now ex-partner, not big debts but big for me as I cannot pay them off.

I cannot get a loan it seems due to above mentioned financial problems - loans not great, but it would work out the same in interest as what I am paying now from slowly paying off bank and credit card.

Is there anything else I can do, apart from robbing a bank, to get help? What are my options?

As much as I respect sex workers, and have had offers, I don't think I'm the sort to become a prostitute :o)

Answer 1

Before you can tackle a debt problem you need to collect together information about your money affairs and follow some simple steps.


Make a complete list of your debts. Remember to divide them into separate headings - priority and non-priority debts . You will have to make offers to pay off your priority debts before you tackle your non-priority debts.
Work out your income and expenditure. Be honest and make sure that the amounts are realistic. Your resulting budget will show you if you have any money left over to divide up between your creditors. You may even be able to identify where you can make some savings. Do not ignore creditors' letters or phone calls. Contact your creditors as early as possible and explain to them why you are in debt. If you phone, you should follow up the call with a letter, confirming what you said on the phone. Send all the creditors a copy of your budget and the list of your debts. If you do not feel confident to deal with your creditors, contact a free advice agency.
If you have only a small amount of money available for your creditors after your essential spending, you may have to offer all of this to your priority creditors. You could have very little, or nothing, to offer to non-priority creditors and you should explain this to them.
Do not borrow more money to repay your debts. Think about the ways in which you might earn extra money or increase your income instead. If your income is low, you may be able to claim benefits.

Answer 2

1. My grandma told me there is a great place to go when you need money: to work! Get two jobs and work extra hours. Any job that pays is good.
2. Sell all non-necessities in your life. Have garage sales and use ebay. You went broke buying crap you didn't have money for, now it's time to give it back.
3. Develop a budget, and live on much less than you make. Stop eating out. Live on rice and beans. Use the extra money to pay off the debt.
4. Cut up and throw away those stupid credit cards. Pay cash for everything. If you can't afford to buy it with cash, you can't afford it.

This may sound harsh, but it is what I did for two years and paid off $40,000 in debt. Imagine what your life would be like with no payments! I have since saved up over $80k for retirement, and life is good!

Answer 3

I think to deal with debt is to have a great plan on how you pay your debt, there are so many option you should take, But if you think the debt is hard to pay then Filing into Bankruptcy is the best option for you.

Fresh Start Solutions - Bankruptcy , Liquidation Experts.
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Answer 4

here are some of my advice that may hopefully help you on how you'll deal with your debt:

1. lessen your expenditures. don't spend your money on things that you don't need. this might help you to have extra savings and add them for your payment of your debt.

2. If you have extra savings try to invest them. Make sure your money is earning so that you'll be able to earn money for the payment of your debts.

3. Budget also your expenditures if necessary.

4. Try to pay your debt little by little if the creditor agrees into it.
this is to make a good name to creditors that you are paying your debts on time and by the next time you'll borrow they will lend you the money for sure. Make sure you have a good credit standing because lenders look into this especially when they decide whether to lend the money or not.

5. try to have an extra earning jobs, or you can also put up your own business.

6. if the lender demands already the payment and you don't have money to pay your debt you can sell some of your property for instance your car, jewelries, and other properties that you think will help you to pay-off your debt.

7. if you don't have any option left then try to approach some of your closest friends, relatives to whom do you think has high earnings and ask them if you can borrow money from them to be able to pay-off your debts and pay them at a later date.

Answer 5

Well I would contact the companies that you owe money to and try to make arrangements for repayment. It shows them that you take your credit history seriously. Some will work with you others may not. Do everything possible to live up the agreements you make with these companies. As for any that refuse to work with you, send them a little something each month after paying the others and keep good documentation. That may come in handy in the future. Good Luck!

Answer 6

If you smoke then give up - the money for cigs can be used to quickly repay debts.
Read more free library books to save money on enertainment.
Cook more and eat out less.
Get a part time evening job one day a week - an extra £25 per week makes a lot of difference over a year.

Answer 7

What state do you live in?? In California there is a non-profit organization that will help you to consolidate your bills. They will send letters to all of your creditors, and work out a repayment schedule. They give you a portion to live off, and the balance of your income pay bills. Their service fee is based on your outstanding debts. Bills collectors will not call you at home or work as long as you continue to work with them.

Check with your local chamber of commerce or the local library.

Answer 8

It is easy to build up debts and even easier for them to run rapidly out of control following an unexpected event such as redundancy or divorce. Ignoring the bills, reminders and threatening calls from creditors will not make your problems go away, so follow our guide on how to escape the debt trap.

Debt Counselling

Answer 9

You could pay the minimum on the higher debts, and the most you can afford on the smallest. That way you can pay them off one at a time and slowly get them all out of the way.

Answer 10

You could:

Personal Bankruptcy - immoral and not recommended. Used it worst case scenarios.

Get free help in financial management from the g'ment.

Get a loan to pay it of and condense it down to one monthly payment. Look in to companies carefuly when doing this.

Managing Debt:
http://www.direct.gov.uk/MoneyTaxAndBenefits/ManagingDebt/fs/en

Yahoo Education Center on Debt Management:
http://biz.yahoo.com/edu/ed_debt.html

Insolvency Debt Management:
http://www.insolvencyhelpline.co.uk/debt_basics/managing-debt.htm