Debt has haranged me to within an inch of my life.... anyone else live through bad debt?

Question

I'm so stressed about my debts, my money hungry boyfriend, my contant collection letters and phone calls i just want to shoot myself... that way NO ONE can get their stupid collections money.... it seems like i'll never be able to get out of it. Anyone else ever lived through a time like this?

Answer 1

Yes, there is life after debt.

I've been through it, I was almost homeless at one time, due to debts I ran up.

Number one thing, is to look at your debt's and make a budget. I know budget is a bad word, but it is really the only thing, that will help you get on your feet. If you don't know where your at, you can't know where your going.

Number two, if your boyfriend is sucking money out of you like an Alabama tick, you need to cut him off and cut him off now. He needs to earn his own way, if he's mooching off you, you need to assess your relationship and where you fit in. If he can't accept being cut off, ditch him, all he wants is your cash.

Take care of the basics first:

FOOD = Basic home cooked foods, doesn't include going out to eat, gourmet foods or star schmucks.

SHELTER = Self-explanatory / rent or mortgage payment.

UTILITIES = Electric, gas, water, basic phone service, no cable / satellite. No internet, sorry YA.

TRANSPORTATION = Car payment or maintenance costs. Go to the highest deductible you can on your vehicle insurance.

CLOTHING = Clothes for work and their cleaning, no fancy dud's, your going to Wal-Mart or Goodwill for a while.

You've taken care of your basic needs. Your eating, the lights are on, your sleeping in your own bed, your clothed and you can get to work. The worlds not too scary now is it?

Now, that we have that under control, how do we make any headway out of this mess?

# 1. Pay the absolute minimums on what you owe. Move to step 2.

#2. Get an emergency fund together of $1,000. This is for the Murphy problems that pop up at the worst times. Things like car repairs, appliance repairs, etc. This isn’t a go to Jamaica fund, or those cute shoes are on sale fund.

#3. Once you have the $1,000 in place, start the debt snowball.

You look at your debts, just look at the amounts you owe on each bill, forget about the interest rates they are meaningless. Anyone tells you different about the interest rates, tell them to prove it. The time span involved will only amount to pennies and if you go by interest rates, you’ll get stalled.

O.K. here’s the process.

Pay the minimums on all of your bills, except the smallest one. The smallest debt is the one you want to hit with all the cash you can.

Once the smallest bill is paid off, go to the next one; apply everything you can to that one, while still paying the minimums on the other bills.

Continue this process until everything is paid off. Believe me, it will happen faster than you can imagine. I know I was surprised.

When you’ve reached this stage, go back to your emergency fund and build up 3 to 6 months of living expenses.

That’s how I did it and I used Dave Ramsy.s method. Here’s his website for more information. I know you’re in a scary place right now, but if you take control of this situation you can take control of your life,

Good luck, I know you can do it.



http://rds.yahoo.com/_ylt=A0geu9qyM1ZHCmkAj0pXNyoA;_ylu=X3oDMTE4YWo0cWFsBHNlYwNzcgRwb3MDMQRjb2xvA2FjMgR2dGlkA0Y4MjRfNzIEbANXUzE-/SIG=12bek8u08/EXP=1196918066/**http%3a//www.daveramsey.com/etc/cms/baby_steps_2867.htmlc

Answer 2

OK. First, Lets get this out right up front....debt will not kill you and the people that call constantly...well, thats their job! Just think how bad a job like that would be.

Now, for some friendly advice.

1. Don't ignore everyone.
2. Figure out who you owe and how much. Create a spreadsheet if it helps.
3. Call each company and explain that you are having financial difficulty but want to pay them back. You just need more time. Ask for a "hardship" program.
4. Be nice. You get a lot more flys with honey than with vinegar.
5. Once you make a payment agreement with any of the companies, stick with it. So, this is key....DO NOT PROMISE MORE THAN YOU CAN HANDLE. If all you can handle is ten bucks a month, put that on the table.

Most companies would rather work with you than pay a collections agency to keep harrassing you or not get any money from you at all. Just do the best you can and keep moving forward. Eventually each one will get paid off.

As for credit counseling, debt reduction, etc., etc. stay away from all of them. The fees are high and they don't do much of anything that you can't do yourself by calling each company, being nice and asking for a hardship program and then making the payments.

Good luck.

Answer 3

You are my best friend because im living through that right now, even with the very computer im typing on. im like 4 to 6 months behind and dell want 400 up front but i don't answer they call and put they letters in the garbage. I even owe AmSouth money but see I got a soon-to-be 11 month old so I send them what I can when I can and that's usually no more than $25 at a time so don't shoot yourself. Just ignore it.

Answer 4

yes, it is awful - yesterday i went to the store with my four children and just wanted to buy some milk, bread and cheap ground beef to make some food. my credit card declined. the lady said she would hold the food for me while i went to the bank. i had $2 in the bank. so we had to go home, with nothing. luckily i had some noodles in the pantry and fed them. it is really awful just before Christmas. well, i didn't know what to do, so i prayed. this morning i found $20 on my way to work and was able to buy some things for supper tonight. my husband just rang me and told me his money came in from work. i had rung all our people we owe money to and asked for extensions as we have a tough time at the moment, they were very understanding. i have sometimes sold things on ebay if i have to.

Answer 5

yeah, it takes a while. you are either spending too much or not earning enough. when you realize it's that simple, and NOTHIING else, you will be halfway on your way to financial stability.

Answer 6

u are responsible for ur debts....call ur creditors and try to work out a plan..dont file bankrutpcy....