how do you get out of debt if you cant get a loan?

Question

i dont want to do bankruptcy because i am so young (20) but i know have two jobs work 6 days a week, and i deserve to pay off my debt. i went to the bank for a loan but they said they werent able to help me, if i go the other route and go to some kind of bankruptcy place they will KILL me with interet and thats another thing i cant handle. i have about 8 thousand in debt and i know i would be able to pay if off, if i was given the chance....does anybody know anything i could try or that has worked for them it would be great!

Answer 1

Consumer credit counseling service (CCCS).... They will contact your creditors and lower or eliminate your interest rates. They will also pay all of your bills for you (strategically), deducting from your account only once. They usually only charge like $15 a month or something, but you'll save WAY more than that and be debt free in no time.

Answer 2

Im 42 and you have more debt than me and you are only 20!!! That is bad... You need to learn a few things. I will help you.

Sit down with all your bills.... find the highest INTEREST debt you have. Then put them in order as second highest INTEREST.. write them all down. The very last one you write down should be the LOWEST interest debt.

Now, you need to figure out how much you HONESTLY need to live. Gas, food, rent, etc. Then see what your monthly payments are on your debts. Say after each bill and each living expense you have 200 left over a month. (that you woudl normally use for fun, cd's, partying-stupid ****).

You will APPLY that amount (whatever it ends up being even if its only 20.00) and add that to the PAYMENT amount on that highest interest debt you have.....meaning you will always be paying 100 on that debt that usually is 75 a month. This will SAVE you money in the end.. LOTS.

Then when you get that HIGHEST interest debt paid off, then you CONTINUE with that 100 and apply that entire amount to the SECOND highest interest debt. And continue on.. you will be SHOCKED at how fast you pay off your debts.

You cannot look at it with a immature reaction of , wow that bill is paid off now I have 100 extra a month. NO YOU DONT have ANY extra until you are DEBT FREE. Then you will have extra......and from there on out.....start a savings account. Pay yourself 20% each check once you are debt free... and do what you want with the rest.

Never pay using credit if you can avoid it. Pay cash. Interest if you truly understand it, you will never pay it.

Answer 3

You CAN'T get out of debt by getting a loan. You can't ever reduce your debt by getting a loan. At best, a loan renames the debt. Most of the time it just fools you into getting MORE debt.

After consulting dozens of 'experts', there is exactly ONE way to get out of debt.
1. Get on a WRITTEN budget. Until you spend less than you earn, you are getting further in debt.
2. If necessary, get another job to increase income.
3. Apply every spare cent to ONE of your debts.
4. After paying off one debt, apply everything you were paying on it the another debt.
5. Repeat 3 & 4 until you are out of debt.

Answer 4

Call your current debt holders and request that they lower the interest.

You must approach them with humility and say it like this, "I know you do not have to do this, but right now I am in a huge financial pickle. I need you to help me. This high interest is NOT helping me. Can you please eliminate the interest charges and fees for at least the next six months so I can start making progress on this."

You would not believe how many people have used this and had it work for them!

If you can muster up $500 a month, you can be debt-free in less than 1.5 years! You can do this!!!

Answer 5

Getting another loan to pay off another debt isn't going to get you anywhere! You just simply have to start paying it off bit by bit. There is no way around that. Money isn't free.
Just b/c you work two jobs doesn't mean you should be cleared of any debt. YOu obviously spent beyond your means, now you have to pay the consequences. Sorry.

Answer 6

There are a lot of credit counselors that will consolidate your debt, in some cases reduce the interest and set you up with a payment schedule. It is a dedicated time...that you will be almost broke, but when it is over you are debt free.Then the trick is to not use credit...The only other way is to do it yourself, and cut out all extra expenditures to make more than the minimum payment on your credit cards. It can be done, but it takes time and dedication to do.

Answer 7

It is in your best interests to make individual arrangements with each of your creditors and stick to a payment plan.

CCCS is funded by credit card companies and may not look out for you.

Bankruptcy may not be your best option, either, if it doesn't discharge your debt.

If you have to pay each creditor $1 a month for 30 years, so be it; make it a plan that is workable for you to continue to survive, and move on with your life.

Don't get credit cards or other debt while you're paying it off, though, because that will just make things worse.

Answer 8

phxchick is right -- a loan won't get you out of debt, it will just move the money you owe from one place to another (plus it will free up your credit cards and tempt you to charge them up again).

You got excellent advice from Sun Valley. If you follow it, you'll solve all your problems and learn some lessons that will carry you through life.

Answer 9

I know where your coming from. It cost a bit to even file. Even upwards of 500 to do it yourself. And there is not always a way to ensure that you would not owe alot of your debt anyway, when all the marbles stoped rolling. LOL How bout being 150 grand ? If I can help with any information, Please get in touch.

Answer 10

if that 8 grand is in credit card debt then call your credit card company. tell them you want to do a payoff or to work to get your interest rate down very low for a limited time. they will want you to promise to pay a minimum amount to them on certain dates and do it! Tell them what you can afford to send to them now. They will want it like yesterday but do it to show you are serious. Tell them what you can afford to spend and work hard to make these payments. This might be your only hope!