I need help with my finances?

Question

I make about 3200 a month after taxes. I have a mortgages that total 1600, utilities including cellphone 300-400 rest for credut cards. my cc bills are totaled up to 18000. How do I clear up these bills. We do not make an extravagant purchases such little purchases keep adding up every month and I feel like I am suffocating. Please help me with a budget and plan on what I should do. I would go to a financial advisor but I don't have the money.

Answer 1

Look into a home equity loan to pay off the credit cards.
Caution if you go this route you will need to throw away the credit cards or you could end up with a home equity loan and more credit card debt to pay off.
If this will work adopt the habit of only spending what you have, no more loans or credit cards. Pay cash for what you want, save until you have the cash.

Answer 2

Suggestion - cut up all of the credit cards but one, and use that one only for true necessities. If you are out of milk, that is very possibly a necessity. If you want a new shirt, it most likely isn't.

Then pay more than the minimum payment each month on the credit card bills.

You might talk to someone like Consumer Credit Counseling -they won't charge you, and they can help lower your interest payments substantially on the credit cards. The catch is, you have to stop using them. Be careful not to get involved with a credit counseling company that charges you a fee and promises to cut down your debt - many of them just take your money.

A financial advisor would mainly advise you on how to invest your money that you have available. That doesn't sound like your problem.

Answer 3

First off make a budget and figure out how you can get out of debt and how long it will take. Try to be aggressive on how quickly you can pay off the debt but be realistic too. Then, put the credit cards away - I mean take them and put them somewhere where you cannot easily get at them (cut them up if you want) so you won't use them anymore. Pay all expenses with cash, but only necessities and always within your budget. Then go ahead and start paying off the credit cards as quickly as possible.

You may want to get a debt consolidation loan if this would save you money, and be sure from your budget you can even pay these off. You also may want to get a 2nd job to supplement your income. Worst case, if you just flat out can't handle the debt load, you would have to declare bankruptcy. I don't think your situation is that bad yet, but you may be headed there if you don't get your finances under control fast.

Remember, key to plan everything out with a budget and stick to it.

Best luck.

Answer 4

I know how you feel. Most of us have been there.

You need to follow the other advice, set aside money for groceries and clothing, plus some "reward" money, so you don't feel too deprived. Look for sales, cut coupons ( I saved $10.60 on $45 worth of groceries with coupons (it would have been almost $60, if the items were not on sale too).), try to minimize expenses.

That said. Take any extra money that you have and apply it to either the card with the highest rate or the card with the lowest balance. There are two schools of thought on this.

First school:
By paying off the lowest balance first you free up some extra money quicker and you feel as if you have accomplished something.

Second school:
By paying off the highest interest rate first, you save on interest charges. You do slowly reduce your minimum due as well.

I would also say that you treat this extra money in one of two ways. If your minimum payment is $50 right now, and after this payment it goes down to $48, you either continue to pay the $50, or you take the $2 and put it into savings.

Answer 5

Credit card debt is very expensive. Speak to your bank about getting a loan and use the money to pay the credit cards off. The bank load will be a lot cheaper to repay
If they won't give you a loan, speak to your mortgage lender and try to negotiate a "payment holiday" - just for a couple of months and pay off you CC debts with the money you would have paid there
Next, cut up your credit cards. For now, pay only with debit cards and adopt the philosophy "if we can't afford to pay cash, we can't afford it"
Lastly, go through your utililties and other fixed-expenses and see if you can make savings. Sometimes switching to another provider can save you lots over a whole year
Like a lot of things, this takes dicipline
Best of luck!

Answer 6

It is called financial discipline-

If you can’t afford it, you don’t need it…..

We as humans can adjust to income hazards….

1st- Watch your expenses….
2nd- Relies on the 1st (stop trying to live in luxury)
3rd- Adapt to your needs (I can’t afford a steak today for lunch, or the rest of the week) maybe payday will be a better day for a steak…. I will settle for the dollar menus until my financial state is better… Anyways a sandwich sounds better…
4th- Tear up those Credit Cards (avoid every seeing them again) Promise thyself that the only contradiction with Credit cards will be paying them off…
5th- Live off your personal accommodations (Why a new set of towels, I just purchased some two months ago- Hummmm! They are durable, washable and last) Maybe I should hold back on purchasing a new set until I REALLY need it….

Look for you inner financial voice, they really do come in handy….

So the next time you in this situation, ask yourself- Should I? Do I? Nah!

Good Luck!

Answer 7

First, cut up the credit cards! They are only making things worse. Always try to pay the minimum balance due plus the finance charges on the highest balance card to get it paid down quicker. Make sure you are paying at least the finance charges or the minimum amount due (whichever is larger) on the other ones, so they will not increase anymore. Do not close the credit card accounts until they are paid off, but do cut them up so you can not add to them anymore. When you get them paid off, keep one, call the company and have them lower your available credit amount to $700 - $1000 and only use it for emergencies (car breaks down, tow bill, etc..) When you get one paid off, switch this tactic to the next highest balance card. Good luck and don't get stuck in the credit card trap again.

Answer 8

Cut out everything that isn't absolutely necessary.

Stop eating out altogether, if you do, even for your lunch. Brown bag it. Make meals from scratch instead of buying ready-made or from the deli section. Leftovers are your friend. Buy generic. Don't buy name-brand clothes. Cut out soda, chips, cookies, beer, cigarettes, etc. Bye-bye internet and cable tv/satellite tv. Cancel magazine subscriptions. Cancel the Y or club membership. Turn down the A/C or turn it off altogether. Save on gas by walking or biking, or carpool if you can. Bye-bye cell phone - there was life before them.

See if you can combine some of your cc bills into a lower interest bill.

Check your phone book for a non-profit agency that has fiscal counceling.

Good luck

Answer 9

Chapter 13 bankruptcy. You can reaffirm on what you want to keep and chunk the cc debt. The bankruptcy payments are paid into a plan so you don't hafta pay anything upfront. After the bankruptcy is over don't feel the need to get anymore credit cards to keep from having this problem again.

Answer 10

????? yikes I can't help it but say good question.