Getting out of DEBT?

Question

Ok I am in debt about 8000.00 my income had been decreased by 50% how do I pay this off at this point everything is behind and collections is calling. This is due to job lost

I am currently using what I had in my 401K to eat with I get unemployment but that it I have two kids

Answer 1

takes time and work but it can be done.

get on a budget, a written budget. tell you money what to do, it works harder that way.

take care of food, clothing, shelter, utilities, transportation first... then the credit cards. etc... collectors.

you can call them and work out a deal/plan for payment. all deals must be in writing before you send money. don't give them access to your bank accounts and dont' send post dated checks.

Answer 2

You can give a non-profit debt counseling service a try.

Pro:
>They have pre-setup agreements with most companies to bring your interest rate down and bring the monthly payments down. Some companies will offer you this too- but they will offer it to them more often.
>they make sure the payment is on time- so you don't' have to worry about it being late
>You can get out of debt in a few years- and they make it possible

they are non=profit, but charge about $30 a month- not too bad


con:
THEY tell you how much you live on. They make you detail everything you spend money on- and tell you how much you should spend. they will make you give up almost everything. you pay them most of your paycheck.

If the company you choose is not a good as the one next to it- and they don't' start a payment plan soon enough- it's YOU that pays with late fees- not them. You are trusting strangers with your finances.



You don't have a 401K anywhere do you? Maybe you can borrow against it.

Answer 3

First, pay your mortgage (or rent) FIRST, then lights and utilities, then home phone. Put your home phone down to the bare bones (no fancy callwaiting etc), if you have internet seriously think (do I need it?). Cut your cable or satellite OFF (that is a luxury). Then what do you have left per month. See what you have in credit card bills etc., and call them asap. Tell them what is going on and be honest and cut your cards OFF. They will work out a payment plan where you pay the same $ every month. If you are behind on your car payment call them asap otherwise they WILL come and get it. Or sell your car for the payoff amount (before you miss a payment) and go out and get something you can afford. If you do not pay the credit card companies they will file a judgement against you (I speak from experience here) and they not going to go away. Call everyone of your creditors and tell them what is going on. Otherwise your credit will be in ruins. It is not worth it.

Answer 4

Can you get a low interst loan and combine all of the debt into one low payment? If so, do that. It will save your credit and when your income gets back up, you can pay it off faster.

If it's too late for that, make arrangements with them that involve your credit getting the best possible reportings. Tell them I can't pay $200/month, but I want to pay something and keep my credit intact. I can afford $50, can I pay that, just for now until I get on my feet, without this going on my report?" Also, if you are going to do this, negotiate in that they take off the negative credit against you, if possible.

Good luck.

Answer 5

file chapter 13. read this weeks readers digest. great info in there about credit card companies and how they just keep uping your apr, despite the fact you are getting poorer (you have this GWB and the current administration to thank for that) in addition, something as simple as a payment getting to your account 5 min late can now drop your credit score.....it's getting rough out there. with chapter 13 you do pay a lump some to a trustee, it's done in 3-5 years and then you can rebuild your life back. in the meantime, the creditors go away (except secured credit like your car, mortgage,etc), but the sneaky bas tards like credit card companies will leave you alone. good luck....and find a good bankruptucy lawyer

Answer 6

Have you ever considered doing work online? A few months ago, I started getting my wages garnished, they were taking $500 per month (ouch). I came across these free opprotunities to make money from home. I have made $2000 in 2 months. If you are interested in learning how I make money, feel free to check out my blog. If you have any questions, please ask. Good luck and hang in there. Everything will be alright.

Answer 7

Call them all - re-negotiate payments. Explain that this temporarily and that you are lookking for employment. If you have a mortgage - make that your #1 payment

Evaluate your life-style and see where you can cut expenses.

Answer 8

DONT STRESS UR SELF OUT OVER IT EXPLAIN TO EVERYONE THAT UR DOING THE BEST U CAN AND U MIGHT WANT TO GET UR # CHANGED BECAUSE COLLECTIONS CAN BE A BIT RUDE......ALSO SEE IF THEY WILL SETTLE WITH YOU ON A LOWER AMOUNT

Answer 9

I know where you can buy your non-toxic household products from, since you have kids, and this will save you a lot of money. Jennifer

Answer 10

takes time.
had similar experiience in the 80s and now I am very comopfrtable. but change of life style and live on the cheap repair the problem then you can save again and move on.