I'm finding it impossible to get out of debt...?

Question

I have a good job, but my bills seem to be more than my paycheck. I have student loans to pay on, and bills that my ex husband helped me run up. Does anyone have some sort of solution to help me get out of this problem. I don't want to file for bankrupcy, and I don't trust debt consolidation places. I've talked to the collection agencies and all, and they are working with me the best they can, but they can only help so much...they need their money. Please! Any advice?

Also, I have no car to sell, I don't drink, smoke, ect. so there are no luxuries. Literally, I get my paycheck, pay bills, go grocery shopping, and buy baby stuff, then, I'm flat *** broke until next payday.

Because I don't have any reciepts from when I was married to my ex, I can't get any kind of payment from him. I know, I tried.

Answer 1

If you can't get financing from a bank, have you tried Prosper.com? It's a person-to-person lending website that can help people in your situation, especially if you have high interest credit cards and want to consolidate them to something lower. I happen to be a group leader on there so you can contact me for more information.

Also, the suggestion about checking out Dave Ramsey's website is good. There's another website, creditboards.com, that has some forums where a lot of people who have been been in very tight financial situations and give a lot of advice to people as well.

One method for paying off bills is to list all your debts from highest interest rate to lowest. Make the minimum payment on all but the highest rate one first. For that one, make as big of a payment as you can afford until you pay it off. Once it is gone, take the amount you were paying on it and add it to the next highest. Keep this up until you are out of debt. I think it's referred to as the "snowball" method.

Answer 2

Ouch, what a pickle. Good for you for not taking the easy (but long term painful) way out of bankruptcy. That method is more difficult now as everyone must go through counseling.

If you are ready to change and brave enough to post details, then I would suggest going over to http://www.simpleliving.net and find their forum discussion boards. Go to the money board and search or ask away. People have done it there. People have gotten out of major debt there and everybody comes from different levels of income and debt levels.

The suggested program is Your Money or Your Life. It is based on a book that you can get from the library.

Since we do not have numbers to work with, it is hard to know if you even have enough income currently to make it. Assuming that you do, try tracking EVERY penny and where it goes for ONE MONTH. This should give you a little clue about where the money goes and where you should try to economize.

If you are low income, then maybe try to check out if there are any local services that can help ease your budget by providing food or other necessities for the month.

If you are truly struggling, then maybe seek a deferrment on your student loans if possible or maybe consolidate the loans into one loan with a more manageable interest rate and payment schedule.

Good luck. Hang in there. Stop using those credit cards. Things may be spartan for a year or two, but getting that monkey off your back will be such a relief!

Answer 3

Well, you have the right instincts. The bankruptcy "cure" can be worse than the disease, and debt consolidation is a BAD idea. I guess your first step is to take a deep breath and committ to getting out of debt. Next, you need to find a good debt counselor (a free one). Check with a few local churches to see if they offer debt counseling or if they know of any good organizations that do.

Here's a couple ideas to get you started:

* See if any of your credit cards offer free balance transfers. It may be a relief to have just one credit card bill. Also, I have had some luck calling my credit card's customer service line and asking for a lower interest rate.

* Sell some of your stuff. eBay is a great way to get quick cash for groceries if all of your paycheck is going towards minimum payments.

* Live within (actually, far below) your means. That's obvious, but it's really hard to do if you're used to spending more. Keep a diary of everything you spend money on--that'll help you see where's there's room for cutting back. I read a book called "The Tightwad Gazette." (see link) It's a little dated, but there are still a lot of great money-saving ideas in there.

Good luck! I really hope you can start to chip away at your debt.

Answer 4

You're on the right track by knowing that bankruptcy and debt consolidation is not the answer. While your situation is unique to you, I would highly recommend you checking out a book called The Total Money Makeover by Dave Ramsey.

In the book he lays out a plan for getting out of debt, saving for the appropriate things, and building wealth. I'm only slightly into the plan, but it's already working. He makes a lot of sense. You can get some information online by going to www.daveramsey.com.

I wish you the best in getting through this. You can do it!! Just stay with it.

Answer 5

You may consider hiring a lawyer to contact them and see if they will work out a smaller debt. If he does it right they may think yuo are considering bankruptcy and settel for less.
If it would help take a part time job if yuo can maybe soemthing like being a waitress in good location you could make 200 to 300 a week there likely in tips and that would help.

But i fyour back is against the wall and you can see no other way out go for the bankruptcy thinkg and get rid of as many o fyour bills as possible. A good bankruptcy lawyer can get rid of about all o fyour accounts, let yuou keep your car at lower payments or free and your home if you are in a mortage.
Most lawyers will not charge you for a first time chat on bankruptcy. at least check it out and don't let the pressure kill you.

Answer 6

Consumer Credit Counseling is okay, but not the best option. Debt consolidation is a really bad idea in your case, at least in my opinion. I would recommend that you meet with a financial planner and a debt/asset management accountant, even a general accountant might help you.

The financial planner will help you set up a realistic, plan to get out of debt. This will be a plan you can be able to work with.

An accountant will help guide you on how to tackle each of the debts because they are great at reading numbers, interest and will be able to advice you on each of your debts.

If you can also get a lawyer involved, but it will be costly. A lawyer will help negotiate payment deals with collectors and creditors, though some accountants can also so this. Also, the lawyer could help you find your ex-husband and make him responsible for his share of debts you accrued together.

Answer 7

Sell what ever you have in the house that you don't need. You claim you have a good job. At my job, I can take a loan out on my retirement account. I pay myself back with interest. See if you can do something similar.
Finally, may be time to get a second job.

Answer 8

well, once you run a dept up, theres almost no ay to get rid of it easily. my buddy is in the same situation you are in, and he doesnt seem to be able to get out of dept. But id have to say that selling your car would solve most of your problems, as they are quite expensive, and i can huess that you have a car loan as well. Sell your car, put the oney towards the car loan and thats a start. Stop wasting money on stuff that you dont need ex) cigarretes, booze, clubs, and some other luxurys. Anyhow thats a start. but id say get rid of your car untill your out of dept and buy a new car with straight up cash.

Answer 9

you do really need to get it sorted via debt consolidation. weigh the odds. heaps of people wanting money per week, many with interest, or a single entity that may have higher interest?

you can pay it off quicker and with less stress. trust me, I did it, and wiped 6 debts in place of one. the 6 debts cost me over 200 a week (NZ$) in total and through debt consolidation it came to about 120.

I was stress free, and though the debt consolidation people had high interest, I was saved. its the devil or the deep blue sea, and I preferred to relax in the cool ocean myself, and float free from debt...

Answer 10

I understand - it can be very frustrating. You need to help yourself realy as noone else will. Take some control of your money.
I have been using a Personal Finance Software package by an Australian business Parcus Group - Personal Finance Associate.
The product is very good and helped me a lot (but you need to be disciplined in using it) For $29 it costs, you get budgeting, financial planning templates as well as advanced features that typically cost loads more as separate software packages such as investment real estate calculations (mainly based on rental cash-flow analysis) as well as some value based shares valuations (based on Warren Buffet's stock valuation methodology)
Their website is http://www.parcusgroup.com
If your'r interested in you own budgeting & future wealth creation this product is definitely worth looking at.