How do I get myself out of debt?

Question

I am so far in the hole it's not even funny!! please help, i'm thinking about getting a second job!!

Answer 1

1.) Assess your total debt, itemize which accounts have which balance and their interest rate
2.) Make a new budget, cut out where you can (salon, lunch dates, expensive x-mas gifts!)
3.) Stop Using Anymore Credit Cards
4.) Call your creditors to see if you can get a lower interest rate or settle the debt for a lesser amount
5.) Put more money toware the balances with higher interest rate
6.) If you receive an offer for a new credit card with 0% interest for the lifetime of the loan, transfer your debts to it, so you can pay down your debt faster
7.) Close accounts you can live without
8.) Do no close all of your credit accounts, this will hurt your credit rating
9.) On your itemized list of account/ balance / interest rate add to it the amount you plan to pay each month and then do an estimated date of when it will be paid off by dividing the balance by your payment (less interest of course). Then you can start to see the light at the end of the tunnel.
10.) Learn to tell yourself NO!

Good Luck! You can do it.

Answer 2

If possible get a consolidation loan and pay off the high interest credit cards. Then call each company and cancel the account so you can no longer use it. The second job may also be needed to pay the consolidation loan-especially if you pay more than the minimum each month to reduce the balance more quickly. It may also mean doing without some of the extras you have gotten used to. You have to learn to say "I can't afford this" and live more simply until the debt is reduced.

Answer 3

Step one: Put together a budget - find out how much money is coming into your household and how much money is going out. This will help you determine your debt to income ratio (for every dollar you earn how many pennies go toward bills)

Step three: Once you know how much money you have coming into your household you can determine what amount you can put toward paying down debt. If you earn $1200 in a month and you have $800 in expenses you can pay $400 toward debt. Now, even though you can commit the entire $400 to your debt it would be wise to also start saving some of that money and putting it into a savings account. This way should a random expense come up, you have something to draw from to pay it off without turning toward credit.

Step three: Trim the fat. Start eliminating expenses that are over the top or excessive. Turn fans and lights off when you go to work. Try a carpool to save on gas for work. Dont dine out as often and eat in.

Step four: create a practical timeline - make terms that you can stick to and stick to them! create and live by your ideal monthly budget, before you know it your debt will start melting away.

Step five: Extra cash. If you can pick up part time work, or better yet, turn your hobby into work that pays - (speak spanish? tutor someone, like yard work - mow someones lawn) seems lame, but you'll be surprised the way you can make a couple extra bucks. Here is a little tried one - ask for a raise. (when asking for a raise I always give this advice - be prepared to ask for what you are worth, and then be prepared to earn what you ask for!).

Step six: once you are close to paying off your debts, continue to live off the same budget, only now instead of paying your bills off - throw all that extra cash into your savings account, and start building a nice little nest egg.

See, it wansnt that tough, all it takes is self control, determination, and time.

Answer 4

It's not going to happen over night. If you realize that, you have taken the first step to get rid of pesky annoying debt. First you need to consolidate your debt, usually be taking out a bank loan to pay off your credit cards. Credit cards are usually the heart of the problem. To pay off 27 percent montly interest, you end up just pay off the interest and not the loan. A bank loan is usually about 6 to 8 percent depending on your credit history, your assets, and you history of paying off debts. Right now take a deep breathe and sweat it out for three years until you get some balance again. Cut those credit cards and try to live on the cheap until things get better. Good luck, it isn't easy.

Answer 5

A 2nd job is a great idea... but the first step is to stop spending now.

If you use credit cards, stop. If you have more than one, cut them all up except one. See if you can consolidate your balances into the remaining card - if not, then just pay them off as quickly as you can.

Stop all luxury spending. No fancy food, no movies, no vacations. Brownbag your lunch.

Throw ALL offers for increased credit in the trash.

good luck (it's tough, no doubt, but you can do it!!)

Answer 6

First step is to cut up all credit cards!!! Then getting a second job is NOT a bad idea.

Answer 7

Leave the country for 6 years

Answer 8

Quit your job. File bankruptcy. Sell everything you own and become a bum and live off the land. lol I'd love to do that.

Answer 9

cut up all your existing credit cards and consolidate them to the lowest interest rate one that you can find then cut that card up until it is paid for

Answer 10

Stop spending now. don't charge any more to the credit cards.