HELP! I'm in $15,000 in debt? What should I do?

Question

I'm in $15,000 in credit card debt ( mostly from putting my college bills on there and spending carelessly) What is the fastest way to pay it off? Should i take out a loan? should i go to credit counseling? or should I try to pay it off myself? my current apr is 32.2% I only have one job and I cant see myself getting another one because i start school soon and I can only have one job

Answer 1

If a person has accumulated a large amount of credit card debt due to multiple credit cards, the need for a proper counseling for credit card debt consolidation can't be understated. Credit card debt consolidation counseling helps a person get vital insights into the facts that can help him get control over the credit card debt.

Credit card debt consolidation counselors are experts with a good knowledge of debt management, budgeting and behavioral patterns of credit card holders. These services are vital for those struggling to manage their credit card debts. Also called credit counseling or debt counseling the credit card debt consolidation counseling brings immediate relief to a credit card holder.

A person seeking credit counseling can get it from two types of organizations. The professional or commercial organizations, and the non-profit organizations. As depicted by its name or categorization, the commercial organizations charge money for their credit counseling sessions and consolidation help on the other hand the non-profit organizations offer free of charge services. Just because the non-profit organizations are free, it doesn't undermine their quality of service. The persons associated with such organizations are thorough experts and have lived the trauma of being under credit card debt themselves and hence bring their vital experience to the credit card holder.

When a person approaches a credit counseling agency, the first thing it will do is to take stock of the situation and get various facts about the credit card debt. The credit counseling agency collects data about the income, expenditure and spending habits. It will guide the credit card holder about budgeting benefits and try to inculcate good financial habits. Read more from: http://www.credit-card-gallery.com/article/353,Credit_card_debt_consolidation_and_credit_counseling_great_tools_to_get_rid_of_credit_card_debt

Answer 2

First of all quit using the credit cards. You need to stop adding to it. You may want to consider reducing your schoolwork and work more. I just quickly figured up one year of interest on $15,000 it comes to $4,830. And that is right now based on a balance of $15,000. You may want to strongly consider on getting a loan. Hopefully you are paying more than the minimum payment on your credit cards. I would seek financial help at your school talk to a counselor quickly.

Answer 3

Try finding a credit card with a lower APR, and put it on that one. Start paying as much as you can each month. The longer this goes on the more that it will cost you in the long run.

Answer 4

Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.

Answer 5

1) Never take out a loan. It just repeats the mistake. EVERYONE thinks that a loan is a GREAT idea.

2) Save and save some more. Downsize, work that second (and possibly third) job and work it off. Get onto a monthly payment plan and get it paid off. My husband had $12,000 in student loans when we were engaged, and I told him that he had 2 years to pay it off or no wedding. He paid it all in 18 months.

Answer 6

Two things you must do:
1. Increase the money coming in.
2. Decrease the money going out.

In other words, take an extra job and quit spending money on crap you don't need.

Then start the snowball effect.
Pay extra on your smallest debt and pay minimums on your others. Attack that smallest debt first.
Then when that one is eliminated, attack the next smallest debt.
Each time you eliminate a debt, you have more money to attack the next one with. ie snowball gets bigger rolling downhill.

JP

Answer 7

First, don't fall for people online telling you they are personal lenders. They aren't.--stopinternetscams. net Second, I would recommend eating cheap. Not fast food, and even though walmart is a terrible corporation, I would recommend shopping there or Target for food. Use whatever you would spend a week on food towards paying off your bills. Move back in with parents would be a secondary option.

Answer 8

There is a great place to go with this. I was in a very similar situation.

This is getting help from real people without the use of banks or credit card companies. Good Luck!

http://www.prosper.com/join/lzc5wh

Answer 9

Get a copy of Dave Ramsey's "Total Money Makeover". It will revolutionize your way of handling money. DO NOT go to "credit counseling". That is as bad as filing bankruptcy. You should also consider taking a year off school to clean up your mess.

Answer 10

yep just like danielle k said. cut up the card stop running up the debt. commit to only purchasing what is truly needed, food and shelter. once you have some of this under control, then manage a budget and keep your debt to a minimum.