how can I get out of debt without filing bankruptcy?

Question

behind on everything. husband just got back to work. feel like I'm drowning in debt. Just looking for help. Thanks.

Answer 1

Talk to your debtors and explain the situation. They would rather have late payments than a default. Just keep chipping away at the debt.

Answer 2

You could turn to credit consulting services, but beware that having one of those on your credit history is almost as bad as having a bankruptcy. However, the good ones will basically renegotiate all the debts on your behalf and reduce your payments and a lot of the interest charges.

Depending on your creditors, you may be able to shuffle a bit of money around, if you are diligent. For example, if you are still getting "interest free balance transfers" on credit card offers, then transfer the balance from the card you're paying the most interest on to that new card can save on interest, letting you pay off the loan that much faster.

The trick is to evaluate your income vs. your outgoing, and attack the card with most interest first. Cut spending to bare bones, only to necessities, and limit your "extra" spending to a few bucks a day. You'd be surprised how much a few sodas and lattes per day adds up over period of a month. Bring your own coffee cups and coffee and stuff, or go to 7-11 instead of Starbucks and such. Instead of soda bring lemondade powder and ice water, so on and so forth. Cut spending, and put the "savings" into reducing debt. Be systematic and do it one step at a time.

Analyze your debt and your spendings, and set a goal, like I'll come up with three ways I can save on something every day, and keep at it.

Answer 3

Call the companies that you owe money to. Explain the situation. Ask what you can do to get back on track with them. Let them know that things are tight and you can only afford $___ for the next couple payments. Ask what can be done about late fees and so on. Let them know you that with their help you'll be able to get back on track and avoid filing for the BK. If you don't get a break, or they don't seem to be helpful enough talk to someone higher until you find someone that is willing to help you.

As far as your utilities are concerned call them too. And make sure you make a payment every month(even if it's only $10 or $15 bucks) because that's all you can afford that's still better than nothing at all.

If you think that consolidating would be better check into that as well. It may help you in your situation. Just be careful. Yes, your bills will be paid and you'll have one big bill. But be sure that you don't rack up the bills again on your credit cards. My parents did that and it took them a long time to dig themselves out of that hole.

Answer 4

I personally recommend In Charge Debt Solutions. I did it myself a few years back, when I saw that window of money starting to get smaller and smaller and was scared of the same thing. It's not debt consolidation, but what they do is work with your credit card companys to lower the APR rates. One of my cards went down to 0%! They look at what your total debt is, and then ask questions regarding your monthly expenses. My payments went down by about a hundred bucks overall. It's definately taught me how to live within my means and NOT rely on credit cards. Also, you don't have to put ALL of your cards on the program. Just remember that once you sign up, you can not sign up for more credit cards, you can get kicked off the program and APR rates can almost triple if you do. The deal breaker for me was when they told me how long it would take to pay it off without debt management, and how long it would take WITH debt management. Right now, I'm looking at 23 more months, and I'll be debt free, AND it doesn't ruin your credit unlike bankruptcy. Hang in there - and always remember there are people in worse off situations than you, and you can make it work.

Answer 5

One: cut out all unnecessary expenses for a while. This would include dining out, cell phones, cable TV, etc. It will be hard but only temporary.

If you have a car and public transit is available, sell it and take the bus.

Try to get a raise at work or take on a second job.

Use all the money you save to pay down debts.

You can try credit counseling to see if you can get your interest rates and/or balances cut.

You can try to renegotiate your debts with your creditors.

Obviously, you have to reform your spending habits and use of credit and go on a strict budget.

Visit the website linked to below for many articles on debt managment and repayment.

Answer 6

You can try a debt management company. Its where they take over all of your bills and you pay them a monthly fee that they use to pay towards all of your bills. (And when you give them credit card bills, they do close all of the accounts.) They come to an agreed upson amount with the credit companies you file with them and thats what you end up paying, actually can save you some money. Make sure they are legit first, do some research on a few companies. You can also try a financial planner if you like.

Answer 7

You're smart to not to want to file bankruptcy! Try contacting a non-profit credit couseling agency in your area. A local chamber of commerce may be able to help you in finding one. Credit counseling agencies mainly assist with unsecured debt such as credit cards. They work with the credit card companies to get you a lower monthly payment. They also consolidate the bills so that you just send in one monthly payment. Also, I don't know your situation or where you live but many communities offer a program called HEAP for heat related assistance. Depending on your circumstances, you may qualify for help in paying your gas or electric bill. It's not just for elderly people or people on social assistance. Also, if you have a mortgage...you maybe able to contact your lender and ask if they have a program where you can skip a month (they tack the interest onto the end of your loan).
There are many helping agencies out there. I suggest contacting a few to see if they can help you. If you're having problems with utility shut off, contact your area department of social services...they can also help with giving you "loan" for utility bills that are in jeapordy of being shut off.
Wish I could help you more.
Good luck to you!

Answer 8

Find a friend or relative with some savings and ask that person to help by co-signing a loan to pay off your debts. You'll have to pay the loan off all on your own, but the interest rate will be much lower and manageable.

Answer 9

first, you MUST stop using the credit cards!! Second, you must start PAYING. Pay as much as you can. It will be difficult for you to get out of debt if you are only paying the minimum payment, you also have lots of interests to pay, so I recommend you start paying as much as you possibly can.

Depending on how much you owe... I would also recommend taking out a seperate loan with fewer interests to pay off a few of the credit cards. That way you are dealing with less interests.

Good Luck

Answer 10

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