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Debt Discussions about debt and how to deal with debt.

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  #1  
Old 08-02-2011, 10:39 PM
kharaa kharaa is offline
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Default buried in debt need some advice

me and my family have fallen in to debt, we have over 8000 dollars in unsecured debt for one or another reason (the excuses don't matter to be honest, but here we are.)

the problem is our credit is shot, we've fallen on some bad times with the economy, and hours being cut at work ect, and we're drowning.

We need a way to consolidate our debt, to get the creditors to stop calling, and to give us a easy to make simple payment that we can afford.

We're trying to rebuild our credit so that we can move back in to a house and return to being homeowners.

any advice on what to do? filing bankruptcy isn't an option in this case due to circumstances. Is there any way for us to get a consolidation loan, even though we have bad credit? it seems kind of contradictory for debt relief to require credit when you're being overwhelmed.

what would you do in our case?
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  #2  
Old 08-10-2011, 03:33 PM
iMoneyCoach iMoneyCoach is offline
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Default Re: buried in debt need some advice

Hi kraraa,

Sorry to hear about your debt. It seems to be the norm these days - did you know the average family has about $9600 in credit card debt? You are not alone.

My advice to you would be to come up with a budget where you can eliminate any unnecessary spending and set goals for paying off your debt. Spending less than you make is a fast way to be able to put money towards your debts. Now, it may be necessary for you to make a little extra money, so you might think about ways you can do that... it could mean trying to find a new job or 2nd job. There are many places on the Internet you can make money now too (check out oDesk if you are good with computer-related work).

Now, I want to suggest one more thing, and it's not a commercial or trying to draw you in, but I work for a financial life coaching company that has an awesome online course that walks you all through getting out of debt and going forward so you can also reach financial goals you never thought you could. If you Google iMoneyCoach, you can learn more about it. And the iMoneyCoach University is the site where the online courses are. We are really trying to get the word out there so we can get this country back on track financially. And spending a little bit to learn how to get out of debt and stop paying interest and dealing with creditors is definitely worth it.

Instead of trying to consolidate (and probably ending up with a huge interest rate), focus on paying off your highest debt amount first (not the highest interest). Then go to the next amount and so on. Again, the iMoneyCoach courses and Debtinator workbook explain this system in more detail.

If you have any questions, let me know and I'd be happy to answer them. I wish you and your family the best of luck in getting out of debt.
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Old 08-11-2011, 09:50 AM
littleroc littleroc is offline
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Default Re: buried in debt need some advice

In early 2002 I made a lot of dumb decisions that led me to the point of near bankruptcy, but I quickly got wise and am debt free now. Here is how I did it. First of all don't worry about your credit score right now it doesn't matter anyway your not borrowing money. You can either try to negotiate with the CC companies yourself or you can go with a company that I recommend called American Consumer Credit Counseling. They setup agreements with the cc companies and arranged payments where all I did was send them one check and they dispersed them for me. The monthly charge was only $5 and it worked quite successfully.
Now the biggest thing is after you pay off all your debt you must change your habits or you'll end up in debt again. So, either plan on only owning one credit card and pay for everything in cash or pay for everything in cash. The only thing you should need to borrow money for every again is a mortgage. I buy all my cars in cash, furniture, everything. Good luck!
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Old 08-12-2011, 01:33 AM
Fredy Atwater Fredy Atwater is offline
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Default Re: buried in debt need some advice

I think that the two former responses were excellent. My wife and I relocated ourselves from NYC to Charlotte and we live on her pension check. It has made a big difference. When I met my wife she was already into deep credit card debt and she consolidated her credit cards. During that period she could not have a credit card. She also had to pay the law firm the equivalent of more than one monthly payment. We should have paid off the smallest debt first and then the next using the extra cash we had available.

If we have a credit card we run the risk of always getting in debt. We must be responsible and only purchase what we can afford . That includes our house. We bought a distressed home in Charlotte for 43 K instead of a new 140,000.00 thousand dollar new home. However, we have to make mistakes to value our need to sacrifice some luxuries in exchange of retaining our money. After, 6 years of hard work I have renovated our home using credit. We paid off all our creditors. Now we have plans of paying our mortgage in 16 months.

But sometimes I'm tempted to buy another car with credit to be honest with you. I simply think of my past mistakes and sure enough that cools off my impulses.
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  #5  
Old 08-22-2011, 07:22 AM
Lex Lex is offline
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Default Re: buried in debt need some advice

Quote:
Originally Posted by kharaa View Post
me and my family have fallen in to debt, we have over 8000 dollars in unsecured debt for one or another reason (the excuses don't matter to be honest, but here we are.)

the problem is our credit is shot, we've fallen on some bad times with the economy, and hours being cut at work ect, and we're drowning.

We need a way to consolidate our debt, to get the creditors to stop calling, and to give us a easy to make simple payment that we can afford.

We're trying to rebuild our credit so that we can move back in to a house and return to being homeowners.

any advice on what to do? filing bankruptcy isn't an option in this case due to circumstances. Is there any way for us to get a consolidation loan, even though we have bad credit? it seems kind of contradictory for debt relief to require credit when you're being overwhelmed.

what would you do in our case?
]

Using the web to make some money while you look for a permanent job is a good viable option you have right now.
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