Living paycheck to paycheck and have about $6000 in Debt have high utility's and bad credit what do I do first

Question

I work at a not profit and make about 27,000 that sounds like alot to some but I just can't pay for everything. I have debt and got behind on my bills as well as my house morgage and now I fill that I can't dig myself out of this pit of despare. I would just like to know what to do in some kind of steps order or who to talk to. I feel that this is making me go mad because money is all that I can think about. I just want to get this under control before I lose everything that I have worked for and make myself look like a fool... I have tried to live below my means, I have no cable or phone or internet. I just want to get out of debt but I think no bank will touch me for a loan and I have also not talked to a financial advisor at my bank yet would that do me any good or not? I just want to get back to a normal life help me in any way possable...... Thanks

Answer 1

that's not a lot of money in this day & age. & i dont know if it's a good idea to talk to a bank about your financial situaton. You may need to take out a loan someday & they may keep y;our informatioin on record against you.

i recommend a credit counseling agency. they are free, & will help you get a budget & call your creditors ,they will tell them your situation & soemtimes debts are even cut in half. & at least the interest dropped. & you may get a season moritorium, where you dont hav e to pay to get caught up.

in the meanwhile i'd check out getting a trade, & making a better income. It takes so much to get by these days. & if you have a trade, they are always in demand. like an electrical engineer, a welder, a technician, a computer analyst, a nurse practicioner. a tool & die person ( is what my husband is) & he got into a technical school for free cause of his low income level.

good luck & i hope this helps you.

Answer 2

Step 1 is ALWAYS to get a sheet of paper and WRITE a budget. Put your monthly income at the top of the page. List EVERYTHING you do with money below and keep a running total. At the bottom of the page, you should have $0.00.
It is not possible to FIX your situation until you know EXACTLY where you stand. If you are single, you CAN live on $27,000 and have enough left to pay toward the debt. I am proof of that. If you have dependents, you need more income.
Do you have a car payment? If yes, SELL the car and get a piece of c*** to drive around until you are out of debt. When was the last time you ate out? If you remember the answer, you eat out to much.

Answer 3

You need to do some math and some serious soul searching.

It may be that you have too much house for your salary. If that's the case, then its time to see if you can sell the house. Tough market but its better than letting it act as a boat anchor in your financial life.

The other problem is income. You don't make much so it surprises me somewhat when you state you have a house. You need to explore a second job in the evenings and weekends.

So if you think you can hold it together by selling whatever you have to sell and working a 2nd job, then have a go at it. If you decide that the numbers still don't work, then get the house on the market.

Answer 4

no loans are a good thing. you dont need more debt. you didnt mention if you have family---maybe rent out a room in your house. get a 2nd job. work nights overnights sell your blood..lol. whatever works. good idea living below your means. of course i hope that means no eating out and cooking all your meals from home and brown bagging your lunch.

One word a budget...
rent gas electric food min. on cc's etc.. then throw as much as you can towards that 6000 debt... i pay on my cc once a week. my min. payment is 15 month. so i pay 15 a week..i really dont miss it and my cc are getting paid down faster than i thought. try this. if you arent making enough to buy food pay all the min. on your bills my suggestion get a pt job. xmas season is approaching many places should be hiring. until you get your debt more under control. then quit spending more than you make in a month. that includes credit cards

Answer 5

Try your local United Way...they sponser Consumer Credit Counseling Service which is a non-profit that will help you pay your debt. They negotiate lower rates with your debitors and will help you pay off your debt a lot faster than you could on your own. They do charge a small fee each month but it you don't even notice it. My fee was only $20. I did it and it saved me five years and almost 4 thousand dollars.

http://www.cccsatl.org/

Good luck!

Answer 6

Check this site: http://www.nfcc.org/ . Consumer Credit Counseling Services (CCCS) offers free counseling. They can look at your finances and advise you on what to do. They also have a debt management program available, if you qualify, for no fee.

Answer 7

1) Consult w/ a reputable consumer credit counseling service.
Resources:
http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.shtm
http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm
http://www.debtadvice.org/

Or a reputable bankruptcy lawyer - such lawyers know how to work w/ creditors & protect your rights.

A good credit counselor will help you work out a payment plan w/ each of your creditors.

2) Research credit laws & consumer rights in your state. Link to legal publications for lay people: http://www.nolo.com/

Contact your local County Assessor's Office & see if your state offers homestead protection. "Homestead exemption is a legal regime designed to protect the value of the homes of residents from property taxes, creditors, and circumstances arising from the death of the homeowner spouse. Laws enacting such protections are found in state statutes or constitutional provisions which exist in many states in the United States." http://en.wikipedia.org/wiki/Homestead_exemption

3) Find out if you qualify for financial assistance from your utility providers & work out a payment plan.