Does anyone have any good ideas on what to do with our debt. We have student loans debt, credit card debt, medical bills, tuition, taxes, etc... We had to go down to a single income family due to our son's neurological condition and now we are drowning in debt. Any smart ideas?
2007-04-20 11:09:32 · 6 answers · asked by question33 2 in Business & Finance ➔ Credit
I have been doing a proven system for a while now. It starts with spending less than you make.
2007-04-20 11:13:47 · answer #1 · answered by Mike E 4 · 1⤊ 2⤋
Step 1. You absolutely NEED a written budget NOW. Right down every penny you need for anything.
Step 2. If you can't cut spending enough to fit your new income, you MUST get more income. Can one of you deliver pizza? Maybe you could work part time at a fast food joint.
Step 3. Use all the money you can find to ATTACK the debts. pay the minimums on all but ONE debt and pay AS MUCH AS POSSIBLE on that debt. When that is gone, take that payment and add it the the next debt.
2007-04-20 13:55:40 · answer #2 · answered by STEVEN F 7 · 1⤊ 0⤋
What you immediately can do at no cost?
1)Note down all your credit cards, amounts you owe, and the interest. Check www.bankrate.com or www.creditcards.com what the current average rate is.
Then select the credit card with the lowest rate, call them (ask to speak with a manager/supervisor) and tell them you like to lower your rate, if so, that you will transfer all debts to this credit card, if not, that you'll close this account and transfer the money to one of their competitors. You have nothing to lose by calling your credit card provider, the worse thing that can happen is that they lose you as a customer.
2) Go to http://www.annualcreditreport.com... for a free credit report. The only on-line authorized source and with no hassle.
Make sure the items on the credit report are accurate and there are no surprises.
3) As you already made a list of your expenses, see what you really don't need. Unfortunately, soemtime you have to sacrifice things like your mobile phone, satelite TV, your gourmet coffee you are getting each morning, but it's not the end of the world. It is the beginning of your financial freedom.
People went as far as selling their house (their home), the equity was enough to get them out of debt. Sometimes you have to do what you need to do. It is the responsible thing to do whatever you need to do to get yourself out of debt.
2007-04-20 11:35:57 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I'd like to recommend that you read the book The Total Money Makeover by Dave Ramsey. He has an outstanding plan for getting on a budget, and out of debt.
After my husband and I read this book, our lives changed completely. It's an awesome plan, and since starting it 4 months ago, we have paid off 11K in debt. The plan does work no matter what your income is.
I wish you the best of luck.
2007-04-20 15:47:46 · answer #4 · answered by Jen G 5 · 0⤊ 0⤋
This is a tough situation. You may need to find a second income in the family by one of you working an opposing shift while the other cares for the child.
2007-04-20 11:19:11 · answer #5 · answered by Still reading 6 · 1⤊ 0⤋
I would use a 2 step approach. First I would look for ways to earn more money, then find ways to save money on your budget. Use all of the extra money that you earn and save to pay off your debt.
2007-04-20 11:57:14 · answer #6 · answered by Anonymous · 1⤊ 1⤋