I am $5000 in debt and I'm only 18. What should I do?

Question

I really need so help. I don't know where to start. From phone bills to credit cards I am definitely over $5000 in debt. What should I do?

Answer 1

This is a hard question which involves a lot of steps to take care of.

First, you need a job. If you've graduated high school, your options of finding a very good job are slightly better. Most hospitals (for example) have Support Nurse positions which only require a high school diploma, and pay $12/hr. See if you can hook up something like that. This is a lot of money we're talking about, so if you can, you really need to work 40 hours a week and be a full time employee. This may compromise your school schedual, but, unfortunately, in this society, a lot depends on your financial history. It's best (in my own personal opinion) to maybe take some time off from school and dedicate your life to working at least for a year. You can always go back to school, you can't always run from debt.

You're 18. You need to not spend money where you can avoid it. If it's possible your parents will house you until you are financially back on your feet, that's something to consider.

Don't take out a loan. That will take care of some of your debt, but just put more debt in a different place, so it doesn't really help that much.

Also take some time to just sit down and work out a GOOD budget. If you're working 40 hours a week at minimum wage, you will have a health pay check coming in. But it won't mean anything if you can't budget it well.

What it really comes down to, though, is you. Hard work and determination is the only thing that will get you out of this one.

Answer 2

You've been living beyond your means.

Now do the opposite. Live below your means, and pay the difference to your creditors.

Dump the cell phone or dump your landline. God I don't know how ordinary people can yammer so much that they rack up monthly phone bills of $70 or more. Even on most plans, the minimum every month is like $40. My cell phone bill is about $6 a month, because I talk for only about an hour and have a prepaid plan.

If you have an expensive car, sell it and buy a cheaper one. Is your apartment an fancy one? Move to a basic one. Eat out less and cook for yourself. Don't go clubbing so often.

I know not all the above will apply to you, but probably some do. Cut back where you can.

Answer 3

Hì. Start looking for a job. Take any job that comes your way, even if it means working as a waiter or cashier. To earn extra money, you may have to work seven days a week to earn enough to pay of your debt. Sell those possessions which you don't need anymore and use that money towards paying off your debts. Phone the people who you are owing money and arrange terms of settling the debt. Act quickly, otherwise you might be handed over to attorneys which will only complicate things. - Ghøst

Answer 4

you need to control spending as much as possible and pay off your credit cards. Twice the minimum payment due each month would be a good start. I assume you are working ? At least $20 a week to pay off credit card debt, and thats going to take a while to get you clear.
You need to draw up a budget, all expenses for the month and your income.

Answer 5

Pay them. Don't talk on the phone so much. Quit using your credit card. Make as big a payment on your cards as you possibly can. Don't ever charge more than you can afford to pay off when the credit card bills come in.

Answer 6

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 7

There is a work book out that costs around 24.00. The author is Dave Ramsey. Excellent book. He helps you set a budget, but be prepared you will have to force yourself to follow and do what he suggests. He deals with realistic numbers, and shows you how to get out of debt and stay out. There is a book that goes along with the work book. I only purchased the work book. I have only been using it for a short time but it is helping me. Start while you are young,get out and stay out of debt. This book is tough, not hard to follow but tough in that it makes you take stock of your finances and take responsibiliy for your self. If you are serious then this book will help you.

Answer 8

Sounds like you need to enter the world of people working 2 or 3 jobs .
Do not know how you burned through $5K so fast ,
But now , you need to work a min of a 60 hour week to get it paid off .
Unless you want to be stuck on poverty row , getting denied jobs and apartments forever because your FICO sucks .
Get your act together NOW and get extra work and get it paid off .

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Answer 9

Stop spending and start paying ON TIME EVERY TIME. Don;t ruin your credit so young.

Answer 10

join the army they have a 20k sign up bonus!!!