In So Much Debt

Hi. First (if you haven't already) you should work up a budget to see what income your family has and then write up all of your bills and see how short (if you are short) you are. You might find that you aren't as short as you think and maybe it's being spent in other areas and you can cut back on some of those areas (eating out, extra groceries, etc).. Once you have done the "budget" you will know how much extra money you need and maybe where you can pull it from or if it's a small amount maybe you could work something part time (say at night if your husband works during the day). Also some people don't think coupons help but they really do as well as buying some store brand products instead of "name brand". Also look at grocery stores and see what sales they are having and if they offer buy 1 get 1 free on some stuff on your grocery list. You might have to make an extra stop but it might be worth it. My husband and I thought we couldn't make it and couldn't figure out where our money was going but when I did our budget (and everything I've mentioned here) we realized how much money was being wasted or spent on needless things. If you want anymore help or want to talk feel free I'm here and hopefully I can help. Also...one thing I've done is I have a calendar JUST for bills and in RED INK I write which ever date they are due and on a piece of paper where the month is I write down all of the bills for the month and how much they are and when they are due and then I check them off as we pay them and scratch them off the calendar but this way you always know what's left for the month and what has already been paid. Also if you (or your husband) get paid on certain days (like my husband only gets paid 2x a month) I go ahead and pay any bills we have that way the money doesn't get spent otherwise (even if they bills arent due yet).. Again if you need any other help or want advice feel free to email me. Take care!

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Mai,
You can come through this with your credit...My son went through the same thing and he would not settle for losing it... He tighten up and really struggled but he has over come it and now has prefect credit and can but anything he wants. He just turned 26 with 2 children, just bought a home and went through a divorced but He has won that battle.... You can too Just hang in there...... It will get better....
L.

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I wish I could be more help but as far as getting out of debt...your guess is as good as mine. I do feel the need though to tell you whatever you do....make your min. payment. I'm going through a divorce and when I got overloaded I just gave up! My cards were very close to their limits so as soon as I stopped making payments, my cards quickly became over the limit. Now with all the fees I don't know how I will ever resolve my debt. My credit is totally ruined. Looking back I wish I would have tried harder to make at least the min. payment. I feel so stupid for not trying harder to pay the little bit that I could. I was just overwhelmed and made a very bad decision.

I hope someone will be able to give you some advice on how to consolidate your debt but please take my advice to heart.

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I'm not sure what you've tried already, but there are options. You could get a consolidation loan at a lower percentage than your credit cards, thereby reducing your monthly payment and lowering it to only one payment. (Of course, after you pay off those credit cards from the loan, SHRED THEM!) Next you might have to try getting another income for a short while until you can pay off some of your debt. Put anything that comes in from the extra income (it could be a babysitting job, a pizza delivery on weekends job, telemarketing, etc.) toward the loan pay off. Next, go online and find a site that will help you make up a realistic budget that you can follow. My husband and I use the 'envelope system'. Each paycheck we take money out and put it in envelopes that go toward our expenses. There's envelopes for everything (gas, rent, date night, clothes, bills, misc., dine out, haircuts, etc.) We had to do this when I left my job to have our first child. It's worked great and we know if there's no money in that envelope we'll have to wait until next month for what we want, but the bills are always paid. I hope this helps a little. Good luck!

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Hi Mai,
I was excited to get this message today, as I have just started a new business venture and think it would fit you and help you get out of debt working from home. It has certainly helped me tremendously.

Please go to this website: http://www.workathomeunited.com/S.
and check it out.

Read Financial Peace by Dave Ramsey. I think his website is www.daveramsey.com He even did a seminar in Chattanooga one time -- It is definately worth goiing to if he comes back. Good luck!

When i met my husband he was in debt badly. If your credit cards are you main problem try refinancing your home to pay them off and cut them up but don't close the account that will hurt it. if you don't own your home try to get another card with a lower interest rate and transfer your card to it and then pay as much as you can a month and do not charge anymore on them until they are paid off. Then when you start over always only charge what you can payoff in 2 months by splitting the payments up into 2. But if you have to use them more then you like still try to split the payment up where you pay them off quick to save that interest...

What helped us was Dave Ramsey.. our own modified version.. it takes time and effort and a little sacrifice, but now after 4 years and a total debt of over 40,000.00.. we are debt free besides the house. I recommended Financial Peace by Dave Ramsey.. he also has a talk radio show 990 am in Memphis at 3. (I think)

C.

You are getting great advice from those that want you to check out Dave Ramsey.

You might also want to check out www.crown.org - likeminded with Dave Ramsey. And they provide FREE counseling. Look for the section of their site that talks about the Money Map Coach. You can talk with someone online...or find someone in the area that will work with you - FREE. It is a ministry and I have used them in the past, have friends that trained with them to help others, etc. Start right away...they are compassionate wonderful people. Listen tomorrow to them on the radio (a.m. 600) at 2:30 p.m. You see what I mean about wonderful, compassionate people.

DON't file for bankruptcy. Don't Don't Don't. There is such a thing as the courts making you if some creditor will not work with you (Money Map Coach will help with that)...and that is a totally different story. Don't you do it.

J.

I am sorry to hear that you are in debt but I know exactly how you feel I used to owe several creditor money and was only able to pay the minimum amount if even that but then I heard about Novadebt and gave them a call... They were really great they call all of your creditors and get lower interest rates and put them all into pne payment that you pay to them and they distribute it for you and they get creditor to stop calling and hassaling you.. I loved it and then after a couple of years I used my income tax money to pay off the remainder it was a great feeling.. I think theyre website is www.novadebt.com but they are worth giving a try...

I would recommend looking into following a debt plan. My hubby and I went to a talk given by Dave Ramsey a couple of years ago. For various reasons, we have a lot of debt (credit cards, student loans, etc.). We never thought we could make a dent in it, and felt very helpless in our situation. We started following his plan (getting out of debt, no credit cards, living by a budget, etc.), and we've made tons of progress lately! It's a process, and it will take us a while to be debt-free, but we're no longer accumulating debt ... and we have two children now and I am a stay-at-home mom. Dave Ramsey has several wonderful, easy-to-follow books, seminars that are offered in various towns, and a Web site. I would recommend his approach to getting out of debt to anyone! Good luck!

Ever heard of Dave Ramsey? It totally worked for my husband and me. Look him up and follow his plan - if you think it will work for your family. Any plan you choose, stay committed. That's the key! Good luck!!

Have you heard of Dave Ramsey? He offers a common sense plan to get out of debt. Go to his website at www.daveramsey.com. There are no gimmicks. He gives you a plan to follow with baby steps. It's hard work but doable. My husband and I are almost debt free. Read his book Total Money Makeover.

I am so sorry that you have to go through this, but you know that you are doing the best that you can. The only option that you would really have is to go and speak with a bankruptcy lawyer; to either wipe out all of your debt or pay a portion of it back. I know you said you don't want to hurt your credit, but if you can barely make min. payments on your cards you will be trying to pay those off for years. There are options out there for you, are you able to consolidate your bills all into one? Trust me, I have been here; I am still here.... I don't think God will give someone more than they can handle, I don't go to church or anything like that, but I am a FIRM believer in that, I have seen it work for my husband & I. Good luck & I hope that you can find a solution to your problems soon.

Mai,
I have worked very hard to eliminate all debt from my life and it is a wonderful feeling! I would be glad to share with you my vehicle for creating a Part-Time income equivalent to my Full-Time salary and creating a residual income that can be bequeathed to my children.
If you would like to learn more, visit my site:

http://www.momexecs.com/cgi-bin/team.cgi?id=La24791&a...

Hi Mai, I can totally relate, when my husband and I got married we had two student loans, two credit cards and a car payment and we were both making hardly any money since we were recent grads in two low paying fields.
Anyway, I don't know if you have heard of Dave Ramsey, but he helped us get out of debt. He has a sindicted radio show that is on around the country you can check out his website at daveramsey.com to see if it is on near you. He also has some books. We used the Total Money Makeover. The main premise of it is you take babysteps to get out of debt. Obviously you pay your needs first like houseing, food and utilities, and then you cut back on any and all extra spending. Get rid of the credit cards too. You also want to have a $1000 emergency fund so you don't need the credit cards if an emergency arises. Then you line up all your debts from largest to smallest and pay the minumum on all of them except the smallest which you pound with all you have. When that one is paid off take all you were paying on it plus what you are paying on the next smallest and slam it. You do that on down the line. It becomes what Dave calls a debt snowball. Each time you pay off a debt you throw the amount you were paying on that one and add it to the next one. It is not an overnight fix, but I promise it is the best way. It got us out of debt 3 years ago which was such a blessing since we had to move to Tallahassee Florida for 2 years and it is crazy expensive there.
You can also look at your budget and see what you can do without. things such as expensive cable packages or going out to eat and anything you don't really need. also look around your house and see what you have to sell. Have a garage sale. Dave says sell so much stuff that the kids fear that they are next. I know it is scarey to think about selling stuff or doing away with things you think you need, but right now what you need to do is "Live like no one else, so later you can live like no one else." I promise it is doable.
Hope that helps, I will check our your myspace page too.

I agree what most of these woman are saying. DAVE RAMSEY< DAVE RAMSEY, DAVE RAMSEY. I am very fortunate that I have no debt excpet for my car payments. I have had to learn that the only credit card I need is my back issued one that goes directly to my bank account. If I want something and dont have the money then I save for it until I do. If you are here in the Memphis area I believe that there is a Dave Ramsey seminar coming up at St. Ann's in Bartlett. I hope everything works out for you and your family.

Dave Ramsey is awesome. He is a Christian financial guru. You can find his book, The Total Money Makeover, at the library. You can also visit www.daveramsey.com, or listen to him on AM 760 in the afternoons. He changed my financial life.

I agree with Courtney and Tracy - Dave Ramsey is great. You can get his books "Total Money Makeover" or "Financial Peace" at a library or bookstore. His offices are in Cool Springs and he has a radio show broadcast all over the country - in Nashville it runs from 1-4pm on 99.7 (I'm pretty sure). Local cable also televises a portion of his show, channel 49 I think from 1pm-3pm. If you're not in the Nashville area you can search his website for a radio station in your area, or download some of his broadcasts off the website to your ipod. If you like his ideas, there is a class called "Financial Peace" that meets once a week for a couple months and will teach you and your husband everything you need to know, plus keep you motivated and help you set small, reachable goals. If you call up his radio show he will frequently give away copies of his books or send you to the classes for free! You will be amazed at how much debt people pay off once they get on a plan, and how they start feeling HOPEFUL instead of scared. Best of luck for you and your beautiful family!

I would suggest that you STOP using the card and get a REALISTIC budget quick. Limit spending to only necessary items (if that means canceling extras on your phone line (caller ID, Call waiting, etc.) giving up cable TV, eating out, etc. Perhaps even a part time job for you if you stay at home, or maybe babysitting for other people you know.

Best advice I ever received! (The same you have received): Check out Dave Ramsey and the Financial Peace program.
Baby Steps to getting out of debt. He has a lot of great advice and plans to help you get completely out of debt.

One thing I (and Dave) would encourage is sell your stuff. Have a big yard sale. If you can pay down a good chunk of your card balance the minimum payment will drop some and that can get you started on the right track.

Hope that helps,
L.

Mai -

You might contact your local Family Services Center. They can help direct you to the people who can help you.

There are a number of non profit charities available to help, just look them up and call.

Best of luck..
P.

I highly suggest Dave Ramsey. My husband and I just started the system to help us pay down our debt that we have. We learned through setting a budget that we were blowing 500-600 a month, when we could have been saving or paying more toward our house or any other debt we have. He has a talk radio show that you can call into and get advice as well. He has a book called: Financial Peace, Revisited. It is worth the $$ to have that book to get you started on paying off your debts and to let you know that you are not alone in the world with your debt. Everyone has debt, its just the way you handle it.

Hope this information helps!

I filed bankruptcy and bought a brand new car 1 1/2 years later and a house 2 years later. This is the best way if you can get around the new laws

I have three words for you: Total Money Makeover. It's the name of a book by a man named Dave Ramsey, and it has changed my life.

I know you probably don't have the money to buy it, but check and see if the local library has a copy you can borrow. It's worth it!

mai,
PLEASE CONTACT CROWN FINANCIAL MINISTRIES!!
they are soooo wonderful!!! you can go to www.crown.org to see their website. other contact info is:
Contact Crown
By Phone
Products and Materials, Donations, Customer Service: 800.722.1976.

By Mail
Crown Financial Ministries
P.O. Box 100
Gainesville, GA 30503-0100

This place REALLY cares about people. they are not here for the money.
PLEASE call them. they are great. Debt enslaves you. i have been there and am working my way out right now. they have helped me sooo much. please contact them.
good luck. oh, and get a financial coach!!! look on the website.

In this case, you have three options; 1)refinance your home, if you own it and IF you have equity. But, in order to get the best rate you need to act BEFORE you are late on the credit card bills and it hurts your credit score. 2) Go to Credit Counseling, but beware, there are more scams that legit agencies out there. Look for one that is not-for-profit and accredited. These plans often fail, so do your research. 3) File for Bankruptcy. This will ruin your credit for a few years. The bankruptcy will remain on your credit report for 10 years, but you will only have a poor credit score for 3-5 years. And you will only have to pay a portion of the unsecured (credit card) debt without paying interest.

No matter what you decide. Stop using the credit cards NOW. You are only digging a deeper hole.

Hi Mia, we were in the same boat and we went through a debt management program, they consolidated all our credit cards, got us a lowere interest rate and in a couple of years they will be paid off. Now the only down side is you cannot use them while on the program, and you cannot apply for anymore. So far it is really working for us, and the phone calls stopped almost immediately.

Have you considered transfering all balances to a 0% credit card? My credit union is running an ad for 0% interest on all transfers for a year. Then, if you still haven't paid off your credit, you can simply find another 0% credit card to transfer the balance to. My friend did this and it worked really well for her. That way, all of her payment was going to the principal instead of interest. Good luck!