What can you do if you make mimumium wage and you are trying to get out of debt.?

Question

I have a part time job three kids and I want to clear up my credit I have no credit cards just other stuff from not knowing how important credit was.

Answer 1

See if you can get someone to move in with you (NOT A BOYFRIEND!) to split bills with. Pay the higher interest stuff off first. If any of your debt can be transferred to a credit card with a permenently fixed APR on balance transfers, do it. You will lower your bills by simply having less interest to pay on a monthly basis. Not to mention, you can pay it off faster because if you keep paying the same amount you currently do, then more will go to principal and less will go to interest.

Answer 2

The number one thing is to make a budget. Ironically, the less money you have, the more important it is.

I do a simple trick to control impulse spending. See or think you need just that something? Don't buy it, write it on a sticky note and put it on a mirror/frig or someplace you can see it. Then review it 24-48 hours later..you'll find the 'reasons' you had disappear after some time and thought.

Quit smoking/drinking...obvious wastes of money

car pool/mass transit - gas, insurance, repairs all add up. I remember seeing something about the REAL cost of driving a car at over 75 cents per mile with the above in it

Splitting expenses with a room mate can work..just be careful

If you go to one of those credit counselers...be careful, a lot are rip offs. Check with your state BBB.

Good luck!

Answer 3

At the end of each day put all your spare change in a piggy bank. Not just the coppers, all of it! It is an easy way to save about £50 ($100) a month to pay off your debts faster. To stop me from getting discouraged because I forgot to empty my purse, if I find any coins when I first open it in the morning I just tip them into my handbag. I got this idea from a guest on the Oprah programme who has become a millionaire by using this method.

Saving money is about spending less than you earn, a lot of people on high salaries are completely incapable of doing that!

Answer 4

Find parents/grandparents or other truly loving family members to take care of your children while you get an education upgrade (to upgrade your skill set).

Work two jobs, (one full-time and the other part-time) to get out of debt and then get into a 12 month certificate program to get out of the "miminum wage" trap.

You can't make less than the minimum wage, so I would look to be something like a Nursing Assistant or Dental Assistant.

And don't take this personally, but do NOT have any MORE children until you get your finances and education in order.

Answer 5

First thing you should do is go to www.annualcreditreport.com and get your FREE credit report from all three credit bureau. then all you got to do is start disputing some of the negative remarks on you report. This will help a lot, I know because I did it.