how can i get out of debt?

Question

i owe nearly 2 thousand dollars to my bill collectors and i finally have job to start paying but they are asking for too much per month and they arent really listening to my suggestions for a payment plan.

what should i do?

Answer 1

Live on less than you make. Cut up your credit cards and use only cash.

Prepare a zero based budget, "spending" all of your income on paper every month. Pay for food, clothing, shelter, utilities and transportation before you pay the creditors. Then pay the current amounts due on all of the loans.

Build you a $1,000 emergency fund. Use it only for emergencies.

Get an extra job. Make extra money.
Pick the smallest loan and pay the extra money on this loan till it is paid off. Taking all the money you applied to that loan, pay it on the next smallest loan. Keep doing this - snowballing these payments till you are out of debt.

Listen to Dave Ramsey at daveramsey.com.

Answer 2

So have I been dealing with the creditors.
I finally got very tired of the browbeating they were giving me and the demands and very little respect to me or my privacy.
I just quit paying them, answering the phone, and since I cannot meet their demands I don't have a credit card anymore.
Funny how I just don't care. I did feel bad about the debt but after what they have done to me all these months.???
What will happen is if you decide not to pay them they will finally sell you out to some collection agency in another state who will pursue you like crazy... then maybe if you are as unlucky as me you will go to arbitration that will get a judgement against you... that is where I am at now. I have seen many lawsuits against these arbitration forums and the collection agencys who use them..
You might get a personal loan once you start receiving a pay check... go to your credit union once you are established for about a month and the cost for the interest will be alot less than the cc are charging you.
Whatever you do, don't let them jack up the interest to 24% or more... You also can call the banks and settle for one price and make sure you get it in WRITING from them paid in full.
Then you will be done.. Good Luck to you!

Answer 3

I was once in debt. Creditors at my door in the mail and on the phone. The amount was around $16,000 in todays dollar's would be about $30,000.
I had a good job but was overwhelmed after my wife left me and I had to take care of our son and work.

I laid out a plan. I paid current bills first; rent, utilities, child care, etc.
Then I paid down my credit card as fast as I could. I kept out about $80 per week to pay old bills. I would write out two checks for $25 and two checks for $15 every week.
Starting on the first of the month all my old bills went in a shoebox. Every payday I drew out four bills the first two out got the $25 checks, the next two got the $15 checks. All 4 bills were set aside.
At the end of the month all the bills would go back in and start over. If the box was empty before the end of the month, any remaining money went to pay off the credit card.
Once the credit card was paid off I tripled the money being paid on old bills and hired a lawyer to handle my divorce.
It took me 14 months to pay off all my debts, including the lawyer and court fees for the divorce.

Answer 4

Pay your tihes. Give to God not to expect, but give to be a blessing and He will return it to you and also add more. His
word says He adds riches and no sorrow. He even promises
to rebuke the devouer for your sake. A devouer could be your debt, or it could be a stronghold in your life. Give a tenth of your first fruits to God. That which is clean and holy. Give the money from your first. The first is the best. That does not always mean just money. It can also mean giving your time.
Example; when you wake up in the morning the first thing you should do is give God your time before you do anything else.
Stop doing it the worlds way and try it God's way. Have the faith to believe it, do not doubt it for a second. God can and will turn any situation around. According to your faith be it unto you! Please apply these prinples and watch how God
show up!

Answer 5

Good for you that you want to pay off your debts. You have to remember that the job of the debt collector is to collect the debt. They generally try to do this at any cost. I would avoid debt consolidation companies if you can. A better alternative is to try to join a credit union, if possible, and attempt to take out a loan to cover the debt. This way it doesn't appear on your credit report that you used a debt consolidation company. As atated earlier, give what you can but be consistent. Hope this helps a little.

Answer 6

Heres what you need to do:

Do a budget with all your expenses not including the $2k debt you are speaking of. Once you see how much money you have left divide it up amoung your debts. Call and tell the collectors this is all you can afford and they will accept it. Now for a long term plan heres what you need to start doing to get back on track and stay on track.

Carry a piece of paper and track all your expenses. Even the .50 and $1 items write them down. Do this for a few weeks.

Next sit down with your paycheck, bills and that list. Figure out how much your bills and expenses are figuring the minium on your debts. The extra money you have should go to your highest accuring debt or in other words the debt drawing the highest interest. Pay all your extra to it, once it's paid off take that amount you where paying and add it to your next debt and keep doing that until everything is paid off.

Next look at what you can downsize on or cut out of your budget completely. Things to look at are cell phone, home phone, cable, internet, car payment(get something for cash), etc.. Usually you can cut quite a bit off your expenses just by downsizing and getting rid of a few things. Now look at that list and see what all you wasted money on. You can take a lunch to work, take drinks to work, make your morning coffee and take with you, make 2-3 days of food at once, eat alot of soups, vegatables and pastas. If you smoke quit smoking.

They save you should have a 3-6month of living expenses emergancy fund. To do this start saving 10% of your take home pay and remember this is for real emergancy not to go shopping or out to eat with.

Remember to live frugally so you don't get into debt again. Your debt isn't much at all and you should be debt free in no time. Once you are debt free take the amount you where paying to debt and save it, you will already be used to spending that money anyways. Get a book by Dave Ramsey called "The complete Money Makeover". Best of luck and happy holidays

Answer 7

They are trying to get their money out of you. They will take what you send them. Start with the bill that you owe the least amount of money on and send that one the most. Send all of them some but send the most to that one. It will not take long for you to pay them off.

Answer 8

Call a bill consolidation company and let them deal with it for you...they can get them to lower the payments but they will charge a fee....always a devil in the details.....read this and you will know if it is the way to go for you or not...

http://ezinearticles.com/?Bill-Consolidation-Company-Basics&id=87938

Answer 9

Pay them what you can on a consistent basis and that will slowly get them off your back.

Answer 10

borrow 2000 d from another fridend

then pay the first one is ok