$10K in debt and don't know how to get out, please help?

Question

HELP!! SF, 38, no kids, $10,000 in debt, behind even on minimum payments. I need somebody to help me make a plan to get out of debt in a realistic way? I am not asking for the money just some free financial planning/debt counseling help. Anyone willing to help me?

Answer 1

OK first speak to all your debtors. Explain to them what's going on and ask if you can come to some arrangement to reduce your repayments or the level of your debt. Most companies are quite amenable as they would rather have some of it paid willingly than have a bad debt on there hands.

Don't be tempted by a consolidation loan unless you have absolutely no choice, in the long term this increases your debt. You may be offered lower monthly repayments but it will nearly always be over a longer period.

Then work out a realistic budget, look at ways you can trim your spending. Once when we were really strapped for cash I started a spending diary, every penny and I mean every penny we spent was written down. You'd be surprised at where you might find opportunities to reduce spending. Accept that for a while you may have to stop doing some of the things you enjoy like socialising. Trim your spending to the absolute essentials only but remember that it is just temporary. Any spare cash should be used to reducing your debt. I found the spending diary a useful to to create a realistic monthly budget and it enable me to keep a much better control on our spending.

You could also consider whether taking a second job for a short while is an option for you. Obviously it isn't possible for everybody but it could help.

Set yourself a goal by which you want to be debt free and that will help keep you focus so that you don't feel you are being lost in a sea of debt with no hope of getting out.

Good luck.

Answer 2

My first suggestion would be to get a budget and live by it. Period. No exceptions. Make sure you know where every penny is going.

Then you need to save up $1000 in the bank for emergencies. Pay your minimum balances and save every penny extra to get that $1000 in the bank. This is for things like car repair, fridge went out, heater broke, emergencies only! Not a new purse or $200 pair of jeans. You may need to take a 2nd job in order to do this. You will just have to suck it up and do it if you really want to get out of debt. You can also consider selling things to help.

After you get the $1000 in the bank, your best bet is to cut back on your lifestyle, eat rice and beans, beans and rice everyday. Every penny that was going to the $1000 now goes to the debt. And list your debts smallest to largest, pay off the smallest one first (while paying the minimuns on all the others) and then move on to the next. You are going to have to sacrifice for a while, but if you do, there is no reason why you couldnt pay off 10K in one year.

Check out Dave Ramsey's website, he shows you step by step how to get out of debt, and stay out of debt. And there are stories there of people who have been in your situation and how they got out of it.

The main thing here is that to get out of debt and stay out of debt is going to require a change in mind set. You cant keep living the way you have been and win at this. You have to change your mind set. Its possible, thousands of people have done it before, and you can be one of them. Listen to Dave's radio show, you can listen on-line at the website, it will encourage you to know that you are not the only person out there in your situation, and he will walk you step by step to get out of this mess.

Good Luck!

Answer 3

Send me an e mail, and i will give you the 800 number of a credit Counciloring Company, they can help and place you on a budget. you can call them Monday.

Answer 4

Get a job and stop spending money on frivolous things. Save your money!

Answer 5

check out this site, it let's you shop for different debt elimination offers and select one that suits you perfectly!

Answer 6

Sell your car.