I need to get out of debt?

Question

I'm getting more and more behind all the time. I don't know what to do. I know I need to close my credit cards. What can I do to get out fast. Just so I can live with out the stress. I have a job but I don't make enough money to make a difference. I pay what I can and I'm still behind. I need like 5,000 dollars. What can I do to pay off that much debt without dragging it out. I'm going to use my income tax refund for it but that isn't even going to help that much. What do i do?

Answer 1

Start budgeting your spending money.
You should write down how much you receive on your paycheck, then log on what you spend and how much you spend that paycheck (until the next one comes). You can point out where your money goes too. Then figure out what's necessary to keep on spending and what's not necessary.

Such as:
a.) eliminate your time going out to buy food or going out to restaurants. bring food from home. (buying out for food definitely racks up money)
b.) limit your spending on things you "want". decide whether you REALLY need to buy something or if you want it just because.
c.) put as much money as you can into your credit card so you don't have free money floating around in your bank accounts. keep them money in your bank accounts for like your bills, and gas.

It took me 5 years to figure out a way to finally take control of my finances, and it took me 9 months to wipe out $6k from my credit card. Now, I'm under $1,000 in debt.

To summarize, you will have to change your lifestyle in really determine what is needed to have your money spent on.

Good luck.

Answer 2

First, get on a budget. List all your bills (utilities, housing, etc) then list all your debts, car, house, credit card, etc. List these smallest from biggest. Attack the smallest debt first, and when that one is done use that payment and add it to the next smallest debt. Before canceling and cutting up all your credit cards, establish a small emergency fund of $1000. Why? Because if you cut up all your cards and the alternator goes out of your car how will you pay for it. If you REALLY want to get out of debt fast, get a temporary second job (deliver pizza (tips), wait tables, deliver papers, load boxes at Fed Ex or UPS, etc) and wipe out the debt.

READ!!! Above is all Dave Ramsey's plan. It has helped us a ton. We have paid off more than $13,000 in debt in 5 months using his plan. Total Money Makeover or Financial Peace University. His website is: www.daveramsey.com and he is on the radio (find a station at his website).

Good luck and get gazelle intensity!! (Have to read his book to find out what that is :-)

Answer 3

Cut up your credit cards down to one and ask that one to put a lower credit limit on it. Instead of making minimum monthly payments, pay it off with as much as you can each paycheque. Another alternative would be to take out a 5G loan from your bank and pay everything off; the logic behind this is that you'll save more money on a lower interest loan.

Answer 4

Breathe!!! Don't panic, it isn't the end of the world. There are actually a few legit services that help pay off your debt quickly. I used this one and it worked well for me. Good Luck!!!!