Trying to find a way out?

Question

I'm trying to figure out the best way to get out of debt. $3500-$4000. I got into debt before I knew what credit was. My income per month isn't high and I'm trying to find an apartment as well. I don't know what will hurt me more or which will help me. (consolidating my debt, a bad credit credit card or a loan,etc.) Any help will be appreciated. Thanks.

Answer 1

First thing:  cut back your expenses.  No more lattes at Starbucks; drink the free coffee at work.  No more fancy hair or nail jobs.  Drink water or hot tea instead of pop from the machine.

If that gets you $200/month you'll have the card paid off in 3 years or so.  If you haven't freed enough money or you need to pay it faster, go to...

Step 2:  Get a second job.  If you can make another $200/week you can have the card paid off in less than a year.

Answer 2

$3500 – $4000 is not a tremendous amount of debt so you are fortunate. Do you have a 401k or other retirement account you can borrow from? If not you may be able to use your tax refund to pay down your debt and just pay what you can each month. Loan consolidations are bad and will take you credit score even lower. They mainly save you on interests. You’ll still be paying off the initial $3500 – $4000. If time is not an issue you should avoid them.

Answer 3

Definitely consolidating is better. This way, you can put all your debt into one low monthly payment that is workable for you to afford. The only problem is going through a debt consolidation company gives you a negative set back on your credit report. My sister went through a debt consolidation company and it lowered her score to about 400 (she already had poor credit. If you have better credit it might stay in the "good"), but also on her report it filed that she had to go through a consolidation company to get out of debt. This also lowers your chances of getting more credit whenever needed. Although it has a lot of low points to it, it's better than bankruptcy, leins, using a "bad credit" credit card to consolidate, or going through a "pay day loan" company. Believe me, consolidating the best way to go. Or you can try getting a loan from your bank. Normally banks have great low interest rates for signature or student loans. Good Luck to you!

Answer 4

you have to get rid of some luxuries to focus your money away from things you don't need. If you can go back to your parents, go back. The apartment will not help you. If you have a full-time job, you can cover the $4000 in about 6 months. But it depends also on what kind of work you do. You should be able to do other things without starving. BUT the key is the attitude. Be frugal and just use common sense. IE: instead of a daily Starbucks, make your own coffee. Instead of McDonald's for breakfast, go to the grocery store and buy bread and cereal. I can give you more inputs if you want. But you should be fine. NOTHING LIKE THIS GETS DONE OVERNIGHT. Be Patient sweety!!

Answer 5

Try a consumer credit counseling service. They are very helpful.