What is the best way to go about getting out of debt?

Question

I am about to lose my truck, and I have some other bills to get paid.. I need help..

Answer 1

Figure out how much income you have coming in each month and how much you have to pay in bills. Hopefully, there will be a surplus at the end of each month. Allocate this amount to your highest interest rate debts or the ones that are most overdue. If you are in the negative after paying your bills, you have to come up with some way to cut expenses. Good luck.

Answer 2

I had some major debt problems at the beginning of 2006 (lower five figures). Now, I am out of debt. I listed, by month, my mandatory expenses (car, insurance, food). Then, I took my debts and divded each by twelve (to have it payed off in 12 months). I then stuck to that budget each and every day for a year. It was brutal, but it works. Also, I wasn't fearful of the Creditor calls. I actually called my credit card companies and negotiated some lower interest payments. Really, the key is to STOP SPENDING, and DISCIPLINE. It does work - I got out of all my debt in 12 months. It really sucks, but it works.

Answer 3

Cutting back on living in general... DO you smoke? Then stop.. there is instant savings... No more going out partying ! Another instant savings. No more casino trips.

Cook only homemade meals and stop buying prefabricated and expensive foods. No more eating out.

There are hundreds of ways to save money and I only listed a few. The money saved just from those should go to your highest interest debt. Pay it off quickly then add that amount to your next debt and pay it off.

Only YOU are putting yourself in debt and ONLY YOU can stop it. Make a few simple changes and life will get better !!

Answer 4

well..first of all you don't need to spend money on the things that you want. only need. food etc.sell your truck if you have to. get 2 jobs...i would work my butt off before i lost anything..i actually have a credit card and i only put a few dollars on it and that's it on the payment a month...my friend told me to only spend what you can pay for...get rid of some of the things that you don't need or want to get extra money. only pay the bills and don't go out drinking or shopping etc. when you go to the grocery store only get healthy foods not junk foods...put yourself on a budget...to where you can only spend so much a week or 2 weeks or whatever. thats what I had to do.

Answer 5

I recommend reading The Total Money Makeover by Dave Ramsey.

He talks about getting yourself on a budget, and sticking to it. He also provides a 7 step plan for getting out of debt and building wealth. You can check the 7 steps out on his website www.daveramsey.com.

My husband and I have been on his plan for about 1 1/2 months, and we're finally making progress on our debt, for the first time in years. The budget has given us the control of our money so we can make this kind of progress.

I wish you the best of luck....

Answer 6

Consolidating debt is an ideal way to reduce your amount and tenure of debt. You make a single payment to one lender on a certain date and this will help you clear off the debts faster. But the fact remains that debt .....