Help! Need So Advice on Debt.

My family is following Dave Ramsey's plan as well. We love it! It's true that with a budget, you "find" more money than you ever you knew you had. It's a great, logical system.
Don't feel guilty. At least you recognize what got you to the point you're at. Now you can begin fixing it!
Good luck!

First off, don't beat yourself up. We all make money mistakes, put that energy into wanting to make it stop and live a better life for you and your family. I'm on the Dave Ramsey plan, and so far have paid off 3 ccs this year, 5 more to go. Go to your library and check out "total money makeover" his book. Very easy read, inspirational. There's also info on daveramsey.com
It's a 7 step plan, and it has made bill paying a good day of the month for me now. Every month everything I can muster goes to paying off debt. When one gets paid off, it is a happy dance! It's set up so you pay smallest debt first, so they are done and out of your life. woohoo! so you feel the momentum right away and you want to do more. You then take what you were paying on that debt and roll it up to paying that much to the next debt, so on and so on.
Anyway, good luck. Pat yourself on the back for wanting to make a change!

I highly suggest Dave Ramsey as well. You can buy the book online or in a bargain book store and it is an easy read. We paid off my graduate and undergrad school loans, 2 cars, 1 credit card, a timeshare and had money in the bank within a couple of years (about $70K total). When I went into a car dealership and wrote a $22,000 check for my new car and walked out with a lien free title in my hand....it was AMAZING!!! I won't say it is easy as paying off debt and changing your habits is never easy but I will say that the steps are logical and make sense and give you a clear path on how to handle it.

I will always recommend this book as it was a life saver. Unfortuntaely, I am going through a divorce right now but because we went through this program we are fighting about assets and not about debt because we don't have any. I hope you never go through what I am going through but I just wanted to say because of Dave Ramsey....I am in a better position with what I am going through than I would have been without. Good luck!

Hi lisa,
I've gone thru the same thing. It's amazing how it adds up! I used a self-help book. I usually don't care for them, but this one I saw on Opera and it made a lot of sense for me. Especially since we couldn't afford a financial planner or classes of any kind. It's by Dave Ramsey and it's called The Total Money Makeover. It really breaks things down and organizes it for you. There are plenty of charts to use. It basically gets you to budget every month to pay off your debt and get back on track. It also gives some financial insight and doesn't make it complicated. Hope this helps and hang in there!

If you want some advice with a Christian viewpoint, check out crown.org. They offer expert advice that is in aline with God's Word in managing money and debt. Part of the plan is paying the lowest balance card; then continuing to apply to the lest lowest, etc. until all are paid.

Hi D.,

DAVE RAMSEY! DAVE RAMSEY! DAVE RAMSEY!!!! I know many other posters have already mentioned Dave Ramsey....and they are exactly right. If you are TRULY COMMITTED to get out of debt (and your husband is onboard as well), following his Baby Steps will get you there. Go to the library and check out his book TTMO (The Total Money Makeover), you and your husband both read it. Don't worry, it won't take you long to read it...he has a way of firing you up, sucking you in...to where you will read it front to back in a matter of a few days. Then you will be so excited to start your plan and get out of debt. I promise you, if you are willing to sacrifice now and make MAJOR changes in your spending habits....you and your family will quickly see the benefits and rewards for doing so. I wish you the best of luck...and as you can tell from my post I HIGHLY recommend Dave Ramsey. :)

Take Care!

A friend of mine is a financial consultant the name of her comnpany is Budget in a Binder in Naperville.
If you want more info, let me know.

Her story is that she was in financial ruin. She finally had enough..... she bailed their family out of debt and she now teaches how she did it.

Go to www.tdiw.com I used that system and it works great...you basically make the minimum payments on everything (prioritized...the system tells you how to do that.) When that debt is finished, you use the money you had been paying on that and add it to the minimum you've been paying on the next priority...it's all computerized and easy to use and it works...John Cummuta is the guy. He also advertises on Wbbm 780am...try it..

I would recommend calling each of your credit card issuers to see about getting a lower rate. I would advise against consolidating right now until they're paid down. But some banks might work with you on lowering the APR. This should help offset some of the interest costs you'll incur.

Hi, Lisa,
I just scanned all the good advice you've gotten so far, and I have something different to suggest. How about a 'green' home business to help with the family finances, and involve your children in learning about working together toward a goal?
I just heard financer David Bach, author of 8 best sellers on finance, speaking on a panel last week, and he told us that the 'green' revolution is going to make the computer tech revolution look like small potatoes.
If you'd like to check out the oldest 'green' company, visit www.goshaklee.info, password DS00579, and you'll also be entered in a monthly drawing for $200 of nontoxic home products!
wishing you the best,
N.
www.shaklee.net/nan_c

Do not feel bad. So many of us had to get things for our children or pay for food or something that we didn't see how this mounted up.We were not buying ridiculous things, necessities and ex husband wasn't helping. Next thing we knew we were so in debt we had to take out a home equity loan Do not do that if you have to, although the interest rate was so much lower than the credit cards (which is where you can get beat). Try Emily's advice. My son wrote about it recently paying off the littlest first.

I also recommend Dave Ramsey's Financial Peace University. www.daveramsey.com In 18 months, my husband and I have paid off over 15,000 in debt using his plan. Don't take this on alone. Get the support of a class/ group to help you thru it. It is duable and the peace of mind that comes with managing your money instead of letting it manage you is WONDERFUL!
good luck

D.:

Don't feel bad. Under the circumstances right now it is happening alot. Nobody mention Bankruptcy but it might be a way out and nothing to be a shamed of. Negotiating the credit card debts might not such a good idea after all, escpecially when you do not have the money, let alone reading a book. Credit counseling just sucks you in and you still have a debt to pay in the end. If you are worried about your credit, it is already shot if it has gone to collections. Bankruptcy, if you qualify, will let you rebuild your credit, you can still keep your home and your car. Bankruptcy lets you start fresh. With no obligation, I encourage you to contact Attorney Dean Matsas w/questions. He does bankruptcies and he also negotiates credit card debts, if he feels that is what is best for you. He is very honest and does not charge for a consultation. He will even discuss your situation w/you over the phone if you can't go to his office. He works on payment plans also. Give him a call no obligation ###-###-####.

Dear D.,
Congratulations on recognizing you have a debt challenge. That is the first step towards making a change.
I don't know if you just have lots of debt or if you are behind there is a big difference. If you are behind and the creditors are calling then my recommendation is to go to a credit counselor. Not someone who will charge you to fix it but one of the non-profit organizations. In Will county it is Community Service Council. They will sit down with you help you work out a budget, contact your creditors and work out a repayment plan.
If you are current but just have lots of debt and don't see any end to it. In this case the "stacking" method will help. List all your credit cards with the amount and the interest rate. Then contact each one and see if they will lower your rate. Next set aside a monthly amount that will cover all minimum payments on the credit card and as much as you can extra to help pay off the debt. Let's say for illustration sake it is $50. Now here is the secret: take the smallest amount with the highest interest and add the extra $50 to that one along with your regular minimum payment. All the other ones only pay the minimum. Next when you have paid off that card take all of what you were paying on the first card and apply it to the second card until that is paid off. If you do this historically in 3 years you will be debt free. But only if you cut up all your cards and only maintain one for emergency. If credit cards are an issue for you have your husband hold the card.
Hope this helps! I have a website called www.crossingyourbridge.net Here we help people who have various challenges. I have also written an e-book on Building a Financail House - money management 101 that can be purchased on that site. That not only talks about getting out of debt but how to stay out.
M.

I wonder if your working or looking for a home based business. I have a number with free info, you can check it out and leave a message if your interested in more info. I would say to get a plan together and move forward in a positive direction quickly.

Is it a gambling, drug, or alcohol problem? How about habitual shopper? There's help out there for almost anything nowadays.