how do you get financially out of debt without getting further in debt?

Answer 1

Pay off all your outstanding debts by using your earned money and not borrowing more.

Answer 2

Generally, you can't get out of debt quickly. Even bankruptcies now hold you more accountable for some debts.

Another means would be to get another job and stick to a budget of adding that job's paycheck to whatever you were already using to pay off debt. So if you were paying $300 a month to the used car dealer and $100 a month to credit cards, and earned another $400 a month after taxes from another job, you should continue to pay $300 a month to the used car dealer and $500 (100+400) to the credit card companies.

Another loan means you are not out of debt and should not put you further in debt. If you have credit card debt, that is generally the highest rate possible so a lot of times you can get loans with a 0% or lower rate to pay off the others, thus saving you on interest, thus allowing more of your monthly payments to paying off your debts.

Unfortunately, there are companies that work around the usury laws. Don't let yourself ever fall for them. They will take more of your money as fees and interest thus getting you deeper in debt and taking more of your money that should have been going to pay down debts. They include pawn shops, payday loan centers, and tax refund centers. Used car dealers do it too by charging you interest on top of charging you a "credit price" instead of the "cash price." If you need a car, a bank that will work with a car auction would work best.

Answer 3

First, figure out how much income you have coming in for the month and how much debt you need to pay out each month. Only include in your debt necessities such as your mortgage, car payment, electricity, food, etc.

Then figure out how much extra money you have so that you can make more than the minimum monthly payments. If you make only the minimum monthly payment, you will never get out of debt.

If you owe more debt than you have coming in, you should contact a money manager to help you figure out what to do. Good luck!

Answer 4

Get a higher paying job, rob a bank, get an inheritance windfall, declare personal bankruptcy and have the debts cancelled. I think you're starting to get the drift.

Be careful with the bankruptcy angle-the IRS sees canceled, forgiven, whatever, debt as taxable income. You may end up owing them something at the end of the day.

Answer 5

people are living on less than you make. You have to live below your means. Automate some savings - have the bank move $ 25 per paycheck into savings. Go on a spending diet. Companies spend billions trying to get you to spend money on things you don't need. They are very good at what they do. You have to be smarter. You don't need a car with a moon roof, coffee from Starbucks, premium cable channels, women getting their nails done, you don't have to have drinks after work, or have drinks with dinner out, -- so look at what treats you have turned into necessities and cut most of them out. If you save $10 bucks by cutting out cable premium channel - increase the money moved from checking to savings. Good Luck

Answer 6

Debt is like weight principal wise ,
Both are the product of deposits and withdrawls ,
If you want to gain $$$$ ( get out of debt )
Deposit more than you spend ( spend less than you make ) .

Debt is more spending / loans than you make ,
So the deficit costs you principal plus % ( interest) .
Learn to minimize / avoid % like the plague .
I did 2 jobs for several years just to get rid of debt with % .

You will see your banks account get fatter from depositing more than you spend .

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Answer 7

Start saving a little money each month, after a few months of saving use the money to start paying off your debt.

Answer 8

Two approaches I can think of:

1. Pay it off. It may take years, but people do it all the time. See the link below for an example.

2. Bankruptcy

Answer 9

Stop spending more than you earn. After paying for everyday living expenses, start making higher payments to credit cards. The more you send them monthly the lower the finance charges will be.