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Do you have debt? How are you getting out?

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Anonymous

Asked by Anonymous at 7:11 PM on Feb. 24, 2009 in Money & Work

Answers (3)
  • I HAD debt. I got out when my daughter (now 9 months) was 2 months old.

    I called the collection companies one at a time. I made settlements with them...it was a goal of mine and my SO's to get me out of debt (around $20,000) so we were willing/prepared to cut back living expenses for a while.
    When I called each company, I told them that this was a long standing debt, that I now had a means to pay it off, and needed their help. Many set me up on a payment plan which included cutting my debt with them almost in half if I paid it within "X" amount of time.
    Once one bill was paid, I would call the next company. Whenever I had extra money, I made sure to put it toward that bill, and that takes a LOT of discipline to do.
    I started with the smallest bill first, and worked my way up.
    Whatever bills I had that weren't in collections yet, I made sure to keep current on the min. payment for it to keep it out of collections.
    Good Luck!
    CarolynBarnett

    Answer by CarolynBarnett at 7:23 PM on Feb. 24, 2009

  • I sold my home 18 years ago, paid everything we were in debt for (house, land, 2 cars, medical bills, personal loans-even from family) and began fresh and new by scaling down and renting a small home with nothing but a room ac unit, but in a nice enough neighborhood, and put our budget into the ranges that fit our income. We saved all the money we could and then bought "up", and still stayed within our income level. I have lived like this ever since and I can sleep easy at nite. Of course, I worry about other silly things....LOL
    lifeasinoit

    Answer by lifeasinoit at 9:28 PM on Feb. 24, 2009

  • We have been climbing out from under debt for a few years now. Here's a quickie on how we did it -

    No more new cars, keep a used one, pay it off, keep the lowest insurance possible on it (once it is paid off you dont need full coverage anymore and that saves money!)

    Learn how to cook and make food stretch in the kitchen. Bring your leftovers for lunch. Food is a huge drain on your pocketbook!

    Live within your means. Get creative, have a garage sale, sell stuff you can't afford ("toys"), stop using credit cards, use taw refund to pay off debt.

    All we owe is our student loans and our mortgage now.
    Anonymous

    Answer by Anonymous at 6:00 AM on Feb. 25, 2009

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