I'm so far in debt. I need help.?

Question

It just keeps adding up. I don't want to file bankruptcy. Right now I'm paying my credit cards by using other credits cards and they are almost all maxed out. I have 3 credit cards totalling $15,000 and a personal loan for $7500. I heard that using a debt service looks really bad on your credit report, and somehow I have managed to keep a decent credit score so I don't want to mess that up. I can't sleep because I'm so worried. I am horrible with my finances and I'm willing to listen to anything you have to say. Please help. What can I do?

Answer 1

Consumer Credit Counciling Service. Google it. Hope they can help. Good Luck!

Answer 2

First thing to do is cut up all of your credit cards - those things are a trap. Now if you can afford it the way you go about this is pay minimums on 2 of your cards and put all the extra towards the one with the lowest balance. This way you'll pay one off and then only have 2 to worry about. Do the same with the two, put all the money towards one card. If you can't afford that you're going to have to pay the price with your credit score but you can always rebuild that and you'll have money to live with.

Answer 3

This is a scary and embarrassing situation for most people. Welcome to the credit card trap. Quit using your credit cards to pay off the other credit cards. If you cannot pay the bill, it's better to take the pounding against your credit than to keep borrowing more money.

There are a number of books that can help you get your financial life under control. I recommend Dave Ramsey's book the "Total Money Makeover". It outlines an unpleasant but proven plan for paying off debt. I'm not going to kid you, he is over-the-top in some areas, but he's someone who has been through the wringer himself.

Answer 4

Pay your house and utilities first and foremost each time they are do or call each and ask for an extension. Electric bills usually let you extend your bills. Send a letter with as much as you can afford to pay per credit card each time and tell them this is simply all you can afford right now. I heard this from Dave Ramsey. Please google and find out more about Dave Ramsey. He was like you described and is now a multimillionaire teaching others how to get out of debt. You can even call or email him via his website and ask questions and he has a talk show. Don't use other credit cards to pay your debts though or it will just keep adding and adding and snowball. Do you have anything you can sell on ebay? Or, Sell your vehicle and get a cheaper used one, or call different credit card companies and find out their rates and combine all your cards on one. This can be done at a bank also. Combine all your credit card debts into one bill. Maybe the personal loan and the credit cards could be combined into one bill. If you can, get a side job at nights even if it means hurting your pride - like pizza delivery or whatever just to help you get out of this bind.

Answer 5

If you are concerned about your credit score, then act now. You still have a chance to save it if you take control of your situation.

I recommend meeting with a credit counselor. They can help you develop a plan to get back on track. If you need a long-term plan, they can help you with a debt management plan.

Whatever you do, do it now before your situation gets worse.

Answer 6

i have heard that the best way to get out of debt is to make arrangements with the creditors to pay less each month andMORE TO THE HIGHEST DEBTOR WITH THE HIGHEST INTEREST RATE . In this way you get ride of one creditor at a time and keep yourself going.
Another way is it get a second job that help finance one large creditor with the additional money. For instance , if you make an additional @200 a month let it go to the highest creditor as payment and do not even consider it spending money.

Answer 7

I'm sorry to hear about your difficult situation. The place to begin is not continue overanalyzing your debts, but to examine your income and spending habits. First, develop a realistic estimate of what you make each month. Next is a very difficult step, be honest with yourself about what you spend money on each month. Did you come up with expenses that are less than your income, or are your expenses greater than your income? Depending on your answer here, you have two different steps to take.

If your expenses are lower than your monthly income, you can now determine what you are able to pay extra each month to clear your debts. If you didn't include at least the minimum payments in your expense calculation, then go back to insure you have that covered.

I would suggest two solutions for how to divvy up your extra money for debts. Suggestion number one is to pay the minimum payment on all but your account which has the highest rate of interest. This is the account that costs you the most money. Suggestion number two may be useful in your instance because you seem worried about your ability to overcome your debt. Begin by paying whatever you can to pay off your lowest balance. This way you will reach the milestone of clearing one debt sooner, and it should help motivate you to continue saving money to pay off your next smallest debt.

Now back to my first steps, what happens if your expenses each month are bigger than your income? There are just two ways to fix this: cut expenses or increase income. Take a good look at your job. Are you ready and available for new opportunities, to take a step forward in your career? Do you have opportunities for overtime that you are able to take on? Both of these options may enable you to increase your income. I do not suggest taking on a second job, most examples of this I have seen end up having overlapping schedule making both employers unhappy.

Cutting expenses is difficult because it goes back to my initial advice in reviewing your spending. You have to be honest with yourself. Me for example, I could lie to myself to say I only spend X dollars in clothing and shoes, but the truth is that I normally spend X+50 dollars. A more likely place for me personally to cut expenses is in fast food expenditures. Review each category for any cut you can make, no matter how small. Once you have your expenses under your income, return to my earlier advice for how to pay off your credit using that.

I wish you good luck. You might feel overwhelmed with the level of debt you have, but I have watched others eliminate more debt than this without resorting to credit counseling or debt consolidation services.

Answer 8

it only if you enter into a debt management (repayment) plan with them , (the credit counselors) does it enter onto your credit report. (and it sure looks a lot better than bankruptcy) go see them. see one that is accredited too. you are getting in over your head, and one of these nice folks will show you the way out.

http://www.nfcc.org/
http://www.cccsintl.org/
http://www.cccsatl.org/

Answer 9

Sell some of your possessions, work more hours

Answer 10

I suggest you to sell your car and to get a second job.