I'm deeply in debt over 70k!!! and i'm earning less than 3.5k per month! I'm in need of help..PLS HELP..

Answer 1

Have you written down a budget yet so you know where your money is going every month? Since you have so much debt you don't want to be wasting money each month on frivolous things like eating out, magazine subscriptions, etc.

All your extra money should be thrown at your debt starting with the smallest one first. After you pay off the smallest, start working on the next smallest and so on.

Some quick ways to make a little extra money are Ebay, yard sales, selling stuff in the paper (i.e big "stupid" purchase like hi definition TV's, video game systems, etc.).

If you bought a car you couldn't afford, sell the car because the money you are paying on it every month isn't worth it. Save up a little cash to buy an old clunker then sell your car, and payoff the car loan.

Most people getting into debt like this because of bad habits, so it's essential you change your attitude about money - and quick. Don't spend what you don't have. Very simple.

Also, don't worry about investing money right now. That's for later, when you've got extra money! However, it would be wise for you to save up a little money for an emergency fund. $500 to $1000 in a savings account will do it.

Look around your house. Is there something you can do without that you should NOT have bought? Probably. Start selling and putting the cash to work!

Oh, and try visiting http://www.daveramsey.com He's the best!

Answer 2

Without a lot more detail it's gonna be hard to give advice....but consider this.

You are gonna need at least $1000 a month to put toward these bills. That's almost a third of your income...and you will be paying for the next several years. Do you have anything close to that much money left after expenses?

Is this secured debt? Credit cards? Student loans? Deciding whether to file bankruptcy will depend on the type of debts these are.

Best advise I can give is see if there is a non-profit credit counseling agency near you. Many times if you have an outsider look over your sitution they may see ways to help you budget and maybe refinance part of your debt.

But $70k is gonna be a very hard task.

Answer 3

Been there done that! Not quite 70k though. You didn't mention what the 70k was for. Frivolous spending or are you trying to buy a home. Frivolous spending, not much options there. Especially if credit cards. If that's the case bankruptcy might be your only option. If you are buying your own home. You may have equity in it, which may be an option to pay off credit cards. Good luck to you. And people should only have one credit card in my opinion. More is a bad situation.

Answer 4

Here are your solutions:
1-Sell things that you don't need, perhaps have a yard sale.
2-Get a second job.
3-Get rid all of your credit cards.
4- Get rid your cable, cellphone, Internet (use library). Don't eat out etc...the un-necessity
5- Cut down your utility bills only use when absolutely need it.
6 -Get a line of credit through reputable bank. Consolidate all of your loans into one and make one payment a month.

It's all about discipline. You may not be able to pay it off immediately but if you start now, you'll be able to pay down lots of your debts. I don't know how you get into this situation but one thing for sure is that you don't need to impress your friends or anyone else. At the end of the day, you'll be the one you pay for all of this. $70.000 is a lot of money even people who make much more don't have this kind of debt. You may want to re-evaluate your life and set your priority. It's not easy but you'll feel good when you see your debt going down.

Answer 5

I was in debt of about $60K previously, and earning about $3500 per month. I used about 2 years to clear 99% of my debt.
This is how I go about it:
Cancelled all my credit cards, arrange a instalment plans with all the Banks, as far as possible, negotiate for a lower interest rate.
Ask for a composite full settlement whenever I have some extra fund, such as bonus.
Get a part time job to supplement my income.
Cut down all unnecessary expenses, such as sold my car even at a loss.

Yours is only $10k more than mine, thus I believe you should be able to clear all if you want to.

Answer 6

Hi, I have a masters in finance, currently entering medschool.

I wish to provide you a workable solution.

First, asses all of your debts, and prioritize them.

Second, forecast any future debts or hardships which you see might be on the horizon.

Create a plan to manage your debts, and place the most priority on your high-priority debts (you'd be surprised...)

Check the IRS website to see if there are any tax credits available to you (there are a few programs, if you qualify)

Come up with your own plan, and analyze it, and make changes.

If you think that the plan is feasible, then initiate the plan and MONITOR AND TRACK your progress.

Set benchmarks and measure your success at sticking to the plan.

If you're unable to do this, then I recommend going with a REPUTABLE independent certified financial planner.

Expect to spend about $500 to $1000 for a 2-3 hour talk with an experienced, qualified CFP.

Bring all your financial info, and come as prepared as possible.

It is good that you seem sincere about wanting to solve your problem, and please do not talk yourself out of taking logical advice.

You can email me at [e-mail]

I'm gladly available to help anyone with a sincere interest in managing their financial positions. I'm not as good as one that you can hire for good money, but I'm an excellent free source, to consult with prior to that.

Thanks and god bless.

Answer 7

Are these schools loans or what? I assume that you have, If not then I’ll assume you have an expensive lifestyle (nice car, nice place with a view downtown, gym membership). If so, please prepare to sell and get rid of these possessions that might have you in the position you are in currently. Cut back on shopping and eating at trendy clothing and restaurants. Re-evaluate on your daily routine. Do you commute by personal car? Perhaps go mass transit. This will be a long process. Figure out what or you wants versus your needs. Wants should now be tossed out the door. This will be a long process and unfortunately there will be several sacrifices you’ll need to make in order to be back in the black. Overall your goal is to cut your expenses and increase your cash flow (2nd job). You didn’t give us much information on your situation on what it is and why it is and if you have family or married. So I write situation if you were married. There are many ways to fix the problem but none will be a quick fix. Please learn from this situation on how it happened and be very patient as you work to fix it.

Answer 8

Cut up your credit cards. Pay off as much as you can every month on all of your debts. If you are paying really high interest rates, you may need to move the debts to one lower interest rate card, or a home equity loan. Pay cash for everything, stay on a budget, and save up for larger purchases. If you don’t have the cash, you need to find a way to do without the item. You didn’t get into this much debt over night, and with interest it’s going to take you longer to get out of it.

Answer 9

Before asking for help, you may wish to ask yourself how you got into this situation. If it was your own fault, then you need to re-evaluate your spending habits. If it was something beyond your control, that is different.

Regardless, you will allways find that your creditors are willing to listen to your story, and perhaps to negotiate with you.

In a worst case situation, you can consult with a lawyer who specializes in bankruptcy.

You might also spend some time looking at ways to develop a second income.

Answer 10

Hi,

You should go for a debt consolidation. It will greatly reduce your debt burden as you can have better interest rates and some time to resume your repayment of all debts. You can get very valuable info on debt consolidation from http://financeguru.consumerspot.info . Good luck for a debt-free life soon!