Getting out of debt..

[Jupiter]

Any suggestions other than pay more than the minimum? We accumulated a lot of debt, mostly credit card, and I see no end in sight. Has anyone used those debt consolidates? I saw one that was non-profit.

TIA

[HannaAddict]

Just pay more than you can, it works. If trut no hope, talk to a reputable bankruptcy attorney. But there are no quick fixes and consolidators are often a scam or profit based and people end up back at square one or worse (run it back up).

[Melaine]

have you read the total money makeover by dave ramsey?

[boltfam]

have you read the total money makeover by dave ramsey?
:yeahthat:

[Katigre]

have you read the total money makeover by dave ramsey?

Yes to this! He breaks down how to get our of debt using the "snowball" method. I know a lot of people with consumer debt who have really benefited from his stuff. There are seminars too if you want irl accountability.

Sent from my Android phone using Swift Key Flow (http://www.swiftkey.net/flow/)

[boltfam]

Yes to this! He breaks down how to get our of debt using the "snowball" method. I know a lot of people with consumer debt who have really benefited from his stuff. There are seminars too if you want irl accountability.

Sent from my Android phone using Swift Key Flow (http://www.swiftkey.net/flow/)
And classes like Financial Peace University

[ang79]

I just started using the You Need a Budget (YNAB) program to try to control our spending better. We don't have credit card debt but are paying loans on two vehicles that I really want to pay down faster. We are mostly living paycheck to paycheck and I want to get out of that rut and start putting money into savings, so I'm hoping this helps. It helps you set up your budget so that each dollar you earn is marked for a certain goal (ex. electric bill, mortgage, groceries, vacation savings, etc.). Right now we're stuck on the 3-4 week floating period that you have with credit cards (buy now, pay off in a few weeks), so I'm trying very hard to only use credit cards for online purchases and gas, and using cash for all other purchases, to help get into the mindset of only spending what we have in our account at that exact moment. Its hard to give up my credit card rewards though! Like my Target Redcard, I shop at Target a lot and I like the additional 5% off I get on every purchase if I use my card. I think it will take a few months of the no credit cards or limited credit cards to get on track and in the right mindset of spending only what we have at that moment, then maybe I can go back to using my cards, as they are very convenient at times.

[marymoo86]

1) Depending on your credit card interest rates - call and see if they will reduce your % interest rate.
2)Depending on what kind of savings you have and can part with some of it, Dave Ramsey has also counseled to offer a settlement but you need to get that in writing.

[DietCokeLover]

We went through Financial Peace University (Dave Ramsey) and we are now debt fee. His methods are common sense, but they do work.

[gamma]

Dave Ramsey is my hero! His program is really life changing! Since there are only 7 steps, it is so easy and uncomplicated which makes it easy for anyone to stay on track. I have been using his program and have been out of debt for 10 years!

[dogmom]

You need to take a honest look at your expenses, fixed and unfixed, and figure out if it is possible to get out of debt. If you are borrowing just to get buy it's different that if you racked up costs doing things you didn't have money for (vacations, new clothes). You also have to take assessment of your money earning potential and you risks for unexpected expenses. If you got yourself into a hole, if your paychecks could meet your expenses if you trimmed, and one of you can take extra work every once in a while I think David Ramsey is a great idea. However, if you are borrowing just to put gas in your car and food on your table, if one of you is in poor health and could have a health emergency at any time, and you don't have the potential to bring in more income you need to look at bankruptcy. My MIL declared bankruptcy years ago at my suggestion around the age of 63. She "only" had $10,000 in credit card debt, but it was all on high interest store cards that she had already paid for the stuff she bought several times over between interest and fees. She had a car loan she couldn't afford ($300/mo) that wasn't going to go away with bankruptcy, and she had not been going to the doctor or buying her meds regularly because of cost. Her BP was 220/120. She wanted to work something out and I was, "Why? So you can keep stressing and have a heart attack about this and then have to declare bankruptcy because you have to stop working for a month?" It was completely the right decision for her. I think a nonprofit consumer counseling organization is a good idea, as long as they can look at the whole picture and not be dedicated to keeping you out of bankruptcy. I'm not saying you have to go that way, but you need someone to help make an honest assessment of your situation with all the tools available, not some place funded by credit card companies that have a vested interest in making sure you pay the most $ possible. Just because they are non-profit does not mean they are out for your interests.

[lhafer]

Call the cc companies and see if they will reduce the interest rates. Some will, some won't. We tend to pay off the cc that has the highest rate off first. Then the next highest, and so on.

[vonfirmath]

Any suggestions other than pay more than the minimum? We accumulated a lot of debt, mostly credit card, and I see no end in sight. Has anyone used those debt consolidates? I saw one that was non-profit.

TIA

Sell everything that isn't nailed down...
Get a job at a pizza delivery place in the evenings.

[niccig]

You have to stop adding to the debt. Stop using the cards, cut your spending so you can put everything extra to the credit card. Bring in extra money where you can. If you get a tax refund, it goes on the card. Everything goes on the card.

DH has moved balances to a card with 0% interest for 12 months. You have to pay as much off as you can before that time is up, as then the interest rate can be high.

[Jupiter]

Thanks all. I have not added to the debt in awhile. I will look into your suggestions.

[amatahrain]

I just wanted to add that I did use a credit consolidation company several years ago. I think it was called Advanced Debt Solutions or something like that. I had 3 credit cards and they all had high balances and VERY high interest rates. Part of their terms were that I had to let all 3 go past due then they called and negotiated with the credit card companies. I also had to close all of the accounts. I told them what I could comfortably afford each month and they worked with me on the length of repayment. The biggest negative was the impact to my credit score and the biggest positive was that my payment was a little over $200 a month and I was done with it in 3 1/2 years. I did pay $10 per month for their services but that was a very small price when you take in to account the interest saved. They also did auto payments from my checking account so no forgetting to send the payment. If I would have continued to pay what I was paying at the current interest rate it would have taken at least 20 years to pay it off. I knew I wasn't going to be purchasing a house or car anytime soon so it was worth it at the time. Fast forward several years later and we had to put a large, unexpected medical bill on a credit card and it was taking forever to pay off but our credit was good enough to get a loan through a credit union for around 3%.

Weigh all your options and check with your local credit union. They might surprise you. We hadn't had a relationship with them before taking that loan. We now maintain savings and checking with them.

I also hear Dave Ramsey recommended a lot and I have a friend that did his program and speaks highly about it.

[kijip]

Anything the more scrupulous debt consolidation orgs can do is actually stuff you can do on your own. Call and see if they will settle or lower the interest rate in exchange for you closing the card and putting the payment on autopay (you can still snowball this and make extra payments as you can.) Because of the increase in bankruptcies and foreclosures due to the economic situation, most credit card companies are willing to do for customers now what they previously would only do for debt consolidation non-profits.

[kijip]

Once you see what you can do on settlement and/or lowered rates, the main ways to get out of debt are common sense:

-sell unneeded stuff. sell any luxury items you can. Send all this money right to the credit card companies.

-decrease other expenses to direct more money into payments on debt. Cable, cell, subscriptions, unused gym memberships are all places that often be reduced or eliminated. Eat out less if that is a part of your current spending.

-increase income until the debt is paid off by doing any job you can on top of what you do now for income. Deliver pizzas, babysit, work nights at a grocery store- anything you can get for extra money within the parameters of the law and your ethical code.