I am wondering how to go about getting out of debt. Weather or not I should go through some kind debt consolidation place where you pay the company one fee a month and tey pay off your debts for you. Im only about 1500 in debt.
2007-03-12 21:37:29 · 3 answers · asked by Princess K! 3 in Business & Finance ➔ Credit
What you need to do is simple. First, start saving some money. Figure out your expenses, and put back a little as "just in case" money. Whatever you have left, pay off bills that are due immediately - followed by credit bills.
You are not badly in debt, and you can easily get out of debt at this point if you have a job and are not making less than you owe every month. The main problem most people have is CREDIT. Credit cards are not money, and should not be used as money -- I know, it's a strange concept -- but credit is borrowed money, money that you will have to pay back, with INTEREST. If you can get your credit cards paid off, and just stop yourself from using them again, you'll be in good shape.
You pay off regular bills first, because you can't afford to have your electricity turned off or to run out of gasoline.
You pay your pay-day loan debts next, because those interest rates are simply outrageous.
You pay your credit card debts next, because they don't have tiny interest rates either.
You have to pay what you can, and try not to spend frivolously. You can get someone to sit down with you and work out a budget, but only go to debt consolodation as a last resort. Also, make certain that if you consolodate your debts, you don't create more on top of you obligation to pay the consolodated debt.
2007-03-12 21:49:16 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No debt consolidation!!! Just work hard, pay off your debt and then start an emergency fund. Debt does not have to be a part of life as so many people have been convinced. Good for you for recognizing this early. Living debt free will give you more freedom then you ever imagined, debt becomes the master and you the slave. FREEDOM
2007-03-13 03:02:35 · answer #2 · answered by Keith C 2 · 0⤊ 0⤋
$1,500 is nothing. No need to go through any kind of loan consolidation. I owe $50,000! And no, I am not some crazy spender with no control. I owe that money due to student loans. What I did to help with costs is consolidation.
2007-03-12 21:46:31 · answer #3 · answered by mx3baby 6 · 1⤊ 0⤋
I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.
2007-03-12 22:47:37 · answer #4 · answered by Anonymous · 0⤊ 1⤋