how can one get out of debts?

Answer 1

Pay more than the minimum payments on all of your credit card bills. Send as much as you can. Do NOT use the cards any more! Cut them up if you don't have the willpower to REALLY quit using them.

Answer 2

The only way to get out of debt (short of bankruptcy) is to pay the debt off.

Easier said then done, I know, especially if you've gotten so far in over your head, you've having problems meeting the monthly obligations.

You obviously have to pay the minimum payments on credit cards so take the one with the highest interest rate and start paying MORE than the minimum payment. That is the one that is costing you the most so you want to get it paid off first. Every month, they are adding more interest to your cards, which basically, keeps you in debt forever so you need to get them paid down and making the minimum payments doesn't really do that.

If you look at your bills, you'll see that that $50 or whatever you sent in last month, didn't really lower what you owed by all that much. That's because they added your monthly interest of $35 or however much you're getting charged so the total owed barely moved.

You HAVE to pay more than the minimum. Credit card interest rates are almost designed to keep you in debt for years.

If you have $1000 charged on a card with 18% interest and a 3%minimum payment or $25, whichever is greater, it will take you almost 5 years to pay that off if you just make the minimum payment.

The higher the interest rate you have on the cards, the worse it is so pay the one with the highest interest rate off first. If you can't figure out which one has the highest interest rate, take the one with the lowest balance and start making more than the minimum payment and get it paid off. Then move on to the next one.

And stop charging on credit cards until you can get this under control. Adding more to your debt is not going to solve the problem. You're going to have to do without a few things for a while but that's a whole lot better than going through bankruptcy and ruining your credit for years. You'll be doing without a whole lot of things if you go through bankruptcy so avoid it if you can.

Tighten your belt up. Avoid going to the Mall where impulse items are liable to do you in.

Answer 3

I hope this helps you:

Strategies to Reduce Debt Quickly

If you are stuck in debt, implement the following strategies to get out of debt immediately.

Accept you have a debt problem: The most important thing to do once you are in debt is find out the total amount you owe. Accepting you have a debt is the first step of the solution. Besides, it also signifies that you are sincerely interested .............

Answer 4

Well if you have a monthly or bi-weekl;y income, you can contact an Agency that will help you to consolidate all your bills into one monthly payment.
Then what they do is they contact the creditors that you are owing and they work with lowering those payments.
They also take a look at your spending costs, your monthly utillitites, and your fuel consumption, food, clothing, etc., and can help you to lower those costs,
They are called a Credit Couselor.
You can find Credit Counseling Agencies that are non- profit that can help you.
They get the creditors to work with them, and are usually paid by donations from those creditors which in the end, the creditors figure that by you going through a credit agency they get most of there money back, instead of trying to get it through a collection agency.
It's one way to get out of debt, get the creditors off your back, and help you also to learn to become more sufficient in learning to stay debt free..

Answer 5

This is a serious problem when you are in debt... So restrict spending enjoy the benefit of saving. Direct your salary to a bank accoutnwhich gives you more and more benefits.. Pay your credit cards the minimum amounts, When ever you have extra money pay back any loans ... Go & tlk to the branch manager for any reductions of interests.. tell them your trouble if you are really facing a bad period..

Answer 6

May I suggest an old fashion way of dealing with debt? Over the years of running an household and a business Ive learn to handle our expenses.
First gather everything you have up and putting them in one pile.
Sort them into bills for medical, credit, then regular house hold essentials ect...
Get a Notebook with the dividers. Name this Your Ledger that is used for nothing but dealing with the bills. On the very first page in pencil not pen list all the bill that are due that month. List also if you have Rent/Mortgage on the same line write how much you owe the date they are due and how much the bill is when your on time and how much it is when your late. Next list electric, phone, insurance, cable, ect... List them the same way. What you pay a month when they are due and what you pay when its late and ect.... On the very bottom list your/spouse income what you earn monthly, weekly, by-weekly. But only list what you bring home not what is going into savings or any other extra monies.
Next on the next page list all your debts you owe what date they are due out side of house hold expenses. Such has medical bills, credit card balances, any and all bills no matter what they were for.
On each page add everything up. Youll find out alot of your money is being spent very waistfull.
On each of your house hold nessasary bills look at what is being spent. Ive showed this to my daughter who had groceries in the pantry but spent another week buying more groceries. When the money could of gone to a debt and it off their shoulders. Alot is just bad habits. Like my son who went every morning to get a coffee at the local store and spent two dollars when he could of made it at home. Forty dollars a month could of paid the premium on his credit card.
Now take a look at all those bills and start with the least figure out ways to save that money through the week. Rather it be on gas, lunches, (which home made lunches are great especially if you have to loose weight) Men that run all day in a truck do like my husband and other men have done all these years take can soups and place them on the manifold of the truck. about 30 minutes later hes eating a hot lunch and for alot less money than buying or eating out. Make list of items you have to have and buy nothing extra. Heres the hard part if you dont have cash on you to pay for it right then, dont buy it, do with out!
On the bills you owe call each person and say I cant or wont be able to pay this amount this month what can I do. You would be surprised at what alot of companies will do to work with you. Some even wave the extra fees. If a bill is like 100.00 send them 10.00 . Youll be surprised at how alot of these bills go away as time goes by. Medical bills through a hospital ask to get on their goverment list so alot of your debt will be handled by grant. It wouldnt hurt to get a list of what you owed on your credit file. Before long your out of debt other than the regular bills you have each month.

Answer 7

My husband and I found a website called http://www.creditcardnation.com/calculator.html

It has a debt calculator where you put in your balances, APR's, ect... You can decide to type in your current minimum payment along with your balance and APR and it will tell you how long you will be paying if off(without using it) before it's compltetly paid. Or you can type in your balance, APR and how many months you want to pay it off in, and it tells you what you payments need to be to do it.

We have a $9,000 card maxed out, went on there and paying the minumum payments we would be paying it off for 15 years not to mention paying $11,000 in interest alone. But up the payments another $50 bucks a month, and its paid off in 2 years with only $2,000 interest.

It helps us a lot!! Good Luck

Answer 8

I am living without debts since 25 years.Iam pure honest man and I try to advise the people to live in peace and honest. what is the meaning of honesty.
1. try to get the good retruns for your work. tell your boss that u need more money to lead a normal life . If ur boss is honest he will give some part of his profits to u by knowing ur honest. otherwise if u wanted to be honest now, tell ur boss that u will work honestly to help the boss business if he incrases the pay.
2.If ur business man. while selling be total honest telling the quality of the goods and the actual profit ur going to get out of it.
3. hate all the donations, dowery etc which are developed by the useless people on the earth to loot the hard earned money of the commoner.
4.debts to be taken if ur going to get income out of the investment. dont go for debts to get entertaining godgets. like TV, mobile, etc.
5.take debts for higer studies of ur child is too hard working and outstanding in merit otherwise if it is just first class dont invest. because now indian education is very useless , every child is getting first class if she reads for five days before exams.
6.dont lead money on high interest which is going to kill the relations and spoil total peace of the entire family of detor.

Answer 9

It all depends on how much debt you are in as to what help you can get.
If you get intouch with a debt management company such as payplan you can fill in a form on the net and send it to them. They will tell you your best course of action.
If you debt is over 15,000 they can write some of it off for you.

Their service is free. I've used them!

Answer 10

- Financial analysts recommend that you start by paying down the balance on the card with the least amount owed.

- Stop impulse buying. Only buy what you need.

- Cut back on spending by not eating out. Coffee and lunches should come from home.

- http://www.moneymanagement.org/