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  #1  
Old 05-06-2011, 02:46 AM
2FAST2BROKE 2FAST2BROKE is offline
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Join Date: May 2011
Location: australia
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Default what to do

ok guys i got a shit situation and i want to make the best out of it and would love some input please

my senarion is i dont have a house (sold it in devorce went badly)
have numerous credit cards,store cards,car loan
totals about 50k

i do have a good job take home $1400-$1500pw
but with all the repayments and child support and living iam finding it very hard to shake and get in front

now ive let things get behind i cant qualify for any debt consolidation loans and i really want to kick this bad spiral

this is the good spot iam about to recieve 25k approx long service leave and tax brake what should i do

obviously iam thinking pay off the highest intrest rates cards/loans first but is this really the right thing to do ?
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  #2  
Old 05-09-2011, 03:38 PM
clintdavis clintdavis is offline
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Join Date: Feb 2011
Location: Fort Worth, TX
Posts: 13
Default Re: what to do

Hi 2fast. Thanks for sharing your situation.

The first thing you will want to do is save back $1,000 as a beginner emergency fund.

Then, you will want to list out all of your debts in the order of the smallest balance to the largest balance. You will begin paying them off in this order. The reason you pay them off in this order is that it creates momentum. Paying off these smaller balances will free up some of your income which you can use to attack your larger debts. I wrote a blog post about this method, entitled, "How To Work The Debt Snowball And Get Free." you can find it at DavisCoachingSolutions. com/blog. That will explain the process better.

The main things you will need to focus on are getting on a written budget, living on less than you make, and committing to not borrowing any more money. Cut up your credit cards and commit to a life without debt. I know you can do it! Let me know if i can be of any help!

Thanks again!

Clint
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Old 05-10-2011, 08:22 PM
FinancialGuy FinancialGuy is offline
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Join Date: Jul 2010
Location: CA/San Diego+USA
Posts: 40
Default Re: what to do

I would seriously look into speaking with a credit counselors organization. Before you speak a credit counseling agency, keep these tips in consideration:

-Speak to a consumer credit counseling agency that's non-profit.
-You should also make sure that the credit counseling agency discloses all fees and monthly fees associated with their debt management program
-Make sure that your credit counseling agency has some good reviews online; check to see if they're members of the BBB.
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Old 05-11-2011, 08:27 AM
Ronnie2 Ronnie2 is offline
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Join Date: May 2011
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Default Re: what to do

Nice suggestion. I was thinking the same to suggest.
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  #5  
Old 05-28-2011, 08:43 PM
jmckinstry jmckinstry is offline
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Join Date: May 2011
Posts: 29
Default Re: what to do

Whatever you do, just make sure that you stop using the cards and do not take out any more debt. I took out a debt consolidation loan once and ran the credit cards back up and was really in a mess.

Consumer Credit Counseling Service would be the perfect place for you. They are very reputable, non-profit and genuinely want to help people.

Good luck!
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  #6  
Old 06-03-2011, 06:51 AM
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pink_briefcase pink_briefcase is offline
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Join Date: Jun 2011
Location: Perth, Australia
Posts: 24
Default Re: what to do

get out of debt as quickly as you can honey...That's the right and the only right thing to do...^_*

Keep on keeping on...
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Old 06-23-2011, 08:13 PM
socialpark socialpark is offline
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Default Re: what to do

start saving and stop having debts...
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  #8  
Old 08-03-2011, 01:47 AM
Fredy Atwater Fredy Atwater is offline
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Join Date: Aug 2011
Posts: 516
Default Re: what to do

Quote:
Originally Posted by 2FAST2BROKE View Post
ok guys i got a shit situation and i want to make the best out of it and would love some input please

my senarion is i dont have a house (sold it in devorce went badly)
have numerous credit cards,store cards,car loan
totals about 50k

i do have a good job take home $1400-$1500pw
but with all the repayments and child support and living iam finding it very hard to shake and get in front

now ive let things get behind i cant qualify for any debt consolidation loans and i really want to kick this bad spiral

this is the good spot iam about to recieve 25k approx long service leave and tax brake what should i do

obviously iam thinking pay off the highest intrest rates cards/loans first but is this really the right thing to do ?

First

Keep that job. Like glue.

Second

Get a lawyer

Third

While you find a trustworthy lawyer. One that does not ask a bunch of money up front, talk to the people and businesses that need your money.
Tell them you are facing a divorce and that you will pay them but in a less aggressive way.

Caveat : If you can't reach an agreement avoid a conflict at any cost and tell them your attorney will contact them. Consider filing for bankruptcy.

Fourth

Don't forget rule #1. Keep your job


Best Wishes,
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