What is the best way to get out of debt when you are drowning in it. No option for credit.?

Question

I have five kids and my husband and I work full time. I adopted four of the kids that were abuse by their natural parents. The state waited so long to give funds for them I got behind and now I can't catch up. I don't see Christmas happening in our home this year.

Answer 1

i hear you...i need some help too..if you find it let me know...

Answer 2

1) Don't spend more than you earn. Generate a surplus.
2) Sell some assets and pay off the loan. That reduces the loan burden.
3) Increase your income without increasing your expenses.
4) Consult a financial advisor and plan to reduce your taxes legally.
5) Stop taking debts in future.

It may be a difficult process in the beginning but will become easy once you start taking action. Find a mentor to help you.

Answer 3

Give up the personal life and work as much as you can. Really. That way you don't have free time to spend the money, just time to put it towards you debt. And budget everything. A second job at a restaurant saves you money on food....

Don't do loan consolidation as it's just debt on debt. Say you owe $10,000 and it will take 2 years to pay it off. Loan consolidation will pay it off over 5 years but you will pay more in interest. Limit your conversations with your creditors about you situation as they have a way to ask you for information you don't want to give and the conversations WILL be documented. Talk to them about the situation and that's it.

Answer 4

Call the banks and lower all your credit card debt limits to the balance you now have. This will stop you from adding more debt. About every three months, do this again. Eventually your debt will become smaller.

Payoff the most on your lowest credit card and be sure to cancel it when paid off. This will help you feel like you are making progress.

I did this several years ago and all my debts were gone in 2-3 years.

Answer 5

You can do it, but it won't be easy.

You can never get out of debt by borrowing money (oxymoron). In order to make debts go away, you have to pay down on the principal.

Part time work and a real tight budget. There are 168 hours in a week. Most people work less than 25% of the time (40 hours).

Also, don't equate Christmas with a bunch of gifts.

Answer 6

In addition to harder work and more sacrifice which you are certainly aware of:
- Debt consolidation loans: consolidate all of your debts to one loan which usually ends up costing you more over time but reduces you montly payments.
- Debt Relief Agencies: consolidate your debt and negotiate with creditors on your behalf to pay-off your debt in a reduced amount but they guarantee payment now. You then usually owe them or a third party in a debt consolidation load but it is at a lower monthly rate. This will reduce your total debt load, but it comes at a cost - by negotiating this reduced payment to creditors your credit score usually goes way down flagging you as a high risk debtor for the next 7 years. (Note: some debt relief orgs are non-profit others are for profit. Try to find a non-profit if going this route)
- Bankruptcy: This is a last resort but has a similar impact as the debt relief.

Answer 7

You need to contact your finance providers and ask for assistance. By law in most countries, the financier must give you payment options if u are having trouble paying it off. They can organise smaller repayments or extend the period of the loans. If you do not pay them the arrangement it will be referred to debt collection where u will go through the same process all over again.

In some countries there are debt consolidation specialists who will finance people in need. This is only for debt consolidation for people in extremem circumstances and you must provide proof of the financial trouble. If you cannot find one of these in your area seek financial counselling as soon as possible. They might be able to refer you to one, or think of a better financial plan for you.

Answer 8

-consolidate all your debit;pay your debit first
-work extra hour ;part time job
-reduce your unnecessay expense like smoking, cup of coffee

Answer 9

I think you can get the loan from the bank..
The link below will surely help you...



http://www.freewebs.com/get_loan/

Answer 10

have a good budget and discipline.