I need to get out of debt FAST!!!!!?

Question

Me and my husband where going to file ch. 7 Bankruptcy, but decided not to. We are able to pay most of our debts, but it will take one by one, some will take a month or longer to try and pay. With the BIG debts we are going to see if they will settle so we can get it paid off faster. Is it best to do it this way or should we do a debt consolodation, b/c w/that I know It will not show up on your credit report paid until the CCCS gets all their money in full. Which could take years. And we need to get a house asap.

Answer 1

Visit Dave Ramsey.com We follow his plan and it really can work, it is called My total Money Makeover. It's a plan to get and live debt free

Answer 2

I think you have a bigger problem.

You have large debts and almost filed bankrupcy. You are worried about your credit rating but you don't want to take the time or money required to pay them in full. YET, you want a house ASAP.

Before you do anything, you have to learn how to manage your own finance. I believe you demonstrated it to yourself that you are not managing your own finance correctly. Plus, you have unreasonable expectations - such as getting out of debt easily and even considering buying a house.

When you used your credit card and took out loans, you promised to pay them back. If you don't, your credit rating will reflect your actions. There is no way out of this. Don't buy a house (and lose it) when you have a problem like this.

Yes - it will take years to settle this, and even longer to save enough for down payment of a house, then reserve cash, and be able to make payment. That is what everybody else is doing....

Answer 3

I would file for bankruptcy. About 10yrs ago I thought I could pay off my debts using debt consolidation but they work for the credit card companies nit you plus they wanted me to pay about $600.00 a month ( that is close to a pay check 4 me). Then I tried a place with a more manageable payment $223.00 a month and they would negotiate with my creditors but after 3yrs and about 5 court appearances they couldn't help me either. Plus the credit card companies keep adding interest so I had an $8000.00 bill now it is up to $20000.00. What I realized is that instead of trying to do the right thing and pay my bills. I should of filed for bankruptcy right away and I would've already been all set. Forget all these people who tell you to try to cut back on this and that or follow this persons advice. Cutting back on things for a long period of time can be stressfull. You still need to have your fun too.
I wouldn't be getting any houses ASAP though. See if you can rent one or rent one to own. Before you file if that is what you choose to do

Answer 4

Credit Consolidation and credit counseling are both scams. Don't do it ... it will hurt your credit rating almost as bad as a bankruptcy. The same is true for settling on a debt for a lesser amount ... it shows up on your report as being settled for a lesser amount which any lender is going to know means bad credit.

Best thing you can do is exactly what you're doing ... work hard to pay off your debts as quickly as possible. Pay off the smallest ones first by making minimum payments on everything but put all extra cash on the smallest one ... when that is paid off ... move on to the next smallest one and so on until they are all paid off. This is known as a "Debt Snowball" ... a term coined by Dave Ramsey. And speaking of Dave Ramsey, you should consider taking his Financial Peace University class. It is a class taught in many community centers and churches and it sounds like you'd really benefit from taking it.

Now ... to accelerate your payoff plan ... look for additional part time jobs for you and your husband. Stop eating out ... rent a movie once in a while instead of going to the theater. Brown bag your lunches instead of buying them. Bring your coffee to work in a thermos instead of buying it. All these things are recommended by Ramsey. Life may not be all that wonderful and blissfully happy for a while ... but the key to "peace" .... "Financial Peace" is to get out of debt as quickly as possible.

Best of luck ... hang in there ...you can do it.

Answer 5

Well, you have a problem with debt, so I think that getting a house fast will just have to wait. You have no choice but to address the trouble you have gotten yourselves into, before you go out and borrow a lot more money for a home purchase. With your poor credit, you will most likely get high interest rates anyway. Do the right thing and take care of your debt first, then make purchases later.

Answer 6

You are right not to file for bankruptcy or else it will affect your credit card and future loan application. For your information, debt consolidation does show up on your credit report. I suggest it's best to speak to the big ticket company and see how best can they restructure the repayment. Work towards zero debt and your dream house should be within reach.

Answer 7

You are already doing what a debt consolidation service will do, so don't pay them. Instead pay as much as you can every month and keep in mind to never be late in any payments. Good luck with the house.

Answer 8

try the debt consolidation, but don't pay no one to do it for you. do the consolidation and then try and get the house right after. what ever you do dont have your credit pulled too many times

Answer 9

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Answer 10

me too