we are in debt....help....?

Question

my husband and I are in debt over our heads and we even tried a debt consol. program.....any advise??

Answer 1

1) Create a budget. This will be the first step towards getting back on your feet.
http://financialbasics.blogspot.com/2006/11/creating-budget.html

2) Understand your credit situation. Credit is a numbers game. The more you understand it, the better you will be at managing it.
http://financialbasics.blogspot.com/2006/11/credit-reports-and-credit-reporting.html

3) Adopt a more frugal lifestyle. Spend less money. Kick those costly addictions (the budget will come in handy at this point)

Answer 2

Having been through this myself I understand where your coming from. It can seem like no mater what you do you never seem to get ahead.

Debt consolidation will in many cases lower you monthly payment but typically charges high interest rates. If you can swing this type of loan, then go for it.

Debt counseling such as consumer credit councilors (there are several companies that provide this service, do your homework and find a good company) These companies will require you cancel your accounts and will negotiate a payment schedule with your creditors. In many cases the credit card companies will reduce or eliminate the interest so that most or all of the payment goes towards your balance. Most credit card companies will work with you because they know when you get to the point, bankruptcy is the next step.

Bankruptcy for many is the last resort. This solution will either wipe out your debt or establish a repayment schedule over a period of time.

If you end up filing bankruptcy, there is life afterwords. I filed 7 years ago and was back on my feet within a year.

Regardless of what you decided to do, get help, if your being harassed by creditors it can make you life a living hell.

The thing to remember is that once you have eliminated the debt to learn your lesson and be smarter about your money in the future.

Good luck

Answer 3

Before starting to pay off all your debt have a small emergency fund of $500-1000 so you don't have to go back into debt because your furnace went out or you need a new alternator in the car. Until you have your emergency fund built up, I would keep ONE credit card open for true emergencies (not Christmas gifts). But once you have your emergency fund sitting in the bank (savings account, not a CD) then cancel the last credit card too.

Then you need a zero balance budget. Meaning add up all your income for the month and then spend every dollar of that on paper before the month begins. Perfect timing to do this before Christmas. Before you can do your budget you need to list all your debts, balances, due dates and minimum amount due. And don't forget to add in how much you need per month for gas for the car, utilities, etc.

If you are behind, don't call all creditors at the same time otherwise you are waking up all the beasts. Work with one creditor at a time BUT pay minimum payments on all debts and pay extra on the one you make a deal with. When that first one is paid off, call the next debt. Go smallest debt to largest debt so you see immediate results and it will keep you motivated.

Also, "credit counseling" be careful. Many of these will hurt your credit and show on your credit report just like you went through bankruptcy.

For more information go to www.daveramsey.com. His website will give you forms to work on your budget and ideas on how to get started (maybe e-bay the extra stuff in your house or have a garage sale, etc.). In the first 5 months of working his plan we paid off $13,000 in debt.

Answer 4

I was in credit card hell at one time during my life. I contemplated filing bankruptcy but decided not to do that. Debt counseling was another option but their questionnaire was 1,000,000 questions long so I decided against that. I got myself a part-time job in addition to my full-time job and worked almost 4 years, 7 days a week and paid off all of my credit cards. I keep one store credit card now that I rarely use and also keep one major credit card for emergencies (car repair, etc.). I will never let myself get into debt like this ever again! Good luck!

Answer 5

Some of the best advice is from people that have been in the situation, or from honest industry professionals. Read some of the articles on http://www.hammocksurvivalguide.com/
Try looking at the categories of debt consolidation, debt relief, loans and finance.
You should find some really useful tips from people who know.

Answer 6

yes. Try to go find another job to pay off all those debts. Debt consol doesn't work at all because my sister registered for one of those and she doesn't know how much money she makes per year (she's a temp) & this company asked her all sort of questions like how much she pay for rent, food, and utilities. So, just pay it all off. Call the creditors and ask if the minimum payment can be lowered. Explain your situation to them.

Answer 7

When you are in Debt you only have one choice, start cutting corners and working more. cut corners like not going out, not overshopping, not eating out, carpool if possible. Also work on paying as much as you can on your bills. For example if a bill is $50, and you can spend $60 on it, then spend $60. That will make bills drop big time. Also try getting a part time job as well as your full time job. you only need to do that until your debt is resolved, then you can return to only one job. good luck. I hope all works well.

Answer 8

Look in the yellow pages under Credit Counseling.

They can negotiate your debt into manageable payments. You have to stick to the progrm until its paid off.

Answer 9

You have 3 choices, debt consolidation, Consumer Proposal or Bankruptcy...personally I would try the debt consolidation or consumer proposal route before claiming bankruptcy.

Answer 10

go file bankruptcy (or however you spell it) and you can get debt cleared and you wont have to pay it bak. you cant get credit cards for 2 years and no lone for a car for 7 years. and go see an attorney, (or however you spell it) they really can help!