How did you get out of debt?

Question

I'm looking for some ideas and encouragement. I know it'll take hard work, determination and focus but looking at 50k of debt can be overwhelming.
Tell me your success story!

Answer 1

ME AND MY HUSBAND HAD ABOUT $29,000 IN DEBT THAT WE WERE WORKING ON. WE CALLED A NONPROFIT ORGANIZATION, CALLED INCHARGE, WHICH PROVIDES PROFESSIONAL CREDIT COUNSELING, EDUCATION AND RESOURCES TO HELP THOSE BURDENED WITH TOO MUCH DEBT, REGAIN FINANCIAL HEALTH WITHOUT A LOAN OR BANKRUPTCY. THEY WORK WITH YOUR CREDITORS TO LOWER YOUR INTEREST RATE AND WORK OUT A PAYMENT PLAN THAT WILL REDUCE YOUR PAY TIME BY YEARS. WE PAY THEM A SUM EACH MONTH AND THEN THEY TURN AROUND AND PAY THE CREDITORS. WE HAVE NEVER HAD ANY PROBLEMS WITH THEM AND THEY ARE ALL VERY CONSIDERATE. OUR DEBT WILL BE PAID OFF IN 4 AND 1/2 YEARS WHICH WOULD HAVE TAKEN 21 YEARS IF WE WERE TO PAY A LITTLE BIT OVER THE MINIMUM PAYMENT EACH MONTH. THE ONLY DRAWBACK IS THAT YOU CAN'T APPLY FOR ANY CREDIT CARD OR PERSONAL LOANS AND YOU CANT USE YOUR CREDIT CARDS THAT YOU HAVE ENLISTED ON THIS PROGRAM. THIS PROGRAM ALLOWS YOU TO ADD AS LITTLE OR AS MUCH DEBT AS YOU CAN. YOU CAN CONSOLIDATE MEDICAL BILLS, CREDIT CARDS, PERSONAL LOANS AND ETC. THERE ARE ALL KINDS OF OPTIONS. GIVE THEM A CALL AT 1(800)565-8953OR CHECK THEM OUT AT WWW.INCHARGE.ORG .THEY HELPED US AND THEY CAN HELP YOU.

Answer 2

You can't make progress until your after-tax-income less expenses is enough to pay the interest on your debt PLUS some contribution to reducing the principal.

Thus, you want to increase your income, reduce your expenses AND minimize the interest on your debt. You do the latter by renegotiating the debt with the lender or by borrowing from some source at a lower rate of interest and paying off the original debt with the proceeds.

The interest rates on debt can be very different. The highest rates are for credit card debt and these should be paid off first and even other debt added so long as the interest rate is less ( and there aren't off-setting penalties or fees ).

These days, $50K of debt isn't unusual and people incur that much and more in the course of getting a college education. It shouldn't be discouraging so long as you analyze your situation, redress the fixable parts and have the discipline to earn more and spend less until your debt is under control.

Answer 3

First, I was in 50k of debt also. So, I feel your pain. Second, you ARE going to get out of debt. Feel it. Own it. But seriously, we hooked up with a debt management program called CareOne. They cut our payments dramatically and they debit our checking account early in the month and pay our bills we want on the program (everything from credit cards to personal loans) They say they will have you debt free in 5 years. And guess what. After 6 months of payments on time, my credit is awesome!!! I can't believe it. Anyways, we pay $485 a month for about 50K. Hope this helps

Answer 4

Just pay it off a bit at a time, plain and simple. Start by paying off some of the smallest accounts first, will help you to see progress. Cut your lifestyle back as much as you can, put some money towards debt repayment, some into emergency savings so if something comes up you won't need to go into further debt. ALWAYS pay more than the minimum payment- if your credit score is decent, see if you can transfer balances to lower interest rates on credit cards (READ to see when rates go up and what they'll go up to).

Answer 5

Congratulations on your decision! Many people close their eyes to the debt and simply think it will go away, which will never work...