Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Suggestions for getting out of debt?

I am over my head in debt, mostly old hospital bills, and I have no idea how to get out of the hole I am in. I'm struggling to get by as it is. Most of my debts have been transfered to the collection department. I was young and stupid back then, I didn't pay attention or attempt to make payments. Now I'm realizing the consequence of my actions. I really want to start over, if that's even possible, and get back on my feet without this weight pulling me down. It's so depressing! Should I file for Chapter 11 Bankrupty? How does that process work? Is there any thing else I can do to relief myself of this fiancial burden? Help!

Answer Question
 
Anonymous

Asked by Anonymous at 3:24 AM on Mar. 31, 2009 in Money & Work

Answers (8)
  • First take a deep breath. Second daveramsey.com will help and here is what I would do.
    List every bill you owe and next to it whether or not they are actively collecting. Some go to sleep. Then write a written budget. See how much you have left at the end of the month and that is your debt snowball. You use that money to get current, save an emegrency fund and then pay down debt. The emegrency fund is amazing. When we didn't have one it seemed like everything in the world that could go wrong did. Now we are okay.

    Also you would not file Chap 11 unless your a business. You would file Chap 7 to completely wash away all debt or Chap 13 to reorganize. Both are costly so unless your home or cars are involved or medical bills are in hundreds of thousands it probably won't be worth it.

    Good luck
    partiesbyjan

    Answer by partiesbyjan at 4:34 AM on Mar. 31, 2009

  • Forgot to put you then pay active debts smallest to largest. Bigger ones especially if they are not bothering you try to hold off and save money so you can call and offer a settlement.
    partiesbyjan

    Answer by partiesbyjan at 4:35 AM on Mar. 31, 2009

  • I agree, find Dave Ramsey! I recommend his book The Total Money Makeover. He recommends exactly what the previous poster said, he lays it all out for you in a very easy to understand way. Its a book about getting out of debt in a common sense way. Also there is a group on here called Dave Ramsey Fans, join it and ask questions. Definitely get the book though, check it out at the library, no point in spending money you don't have when you can get if for free at the library.
    slw123

    Answer by slw123 at 7:52 AM on Mar. 31, 2009

  • I work from home and love the fact that I can be home with my kids and make an income!! Checkout my website www.MomsGoneGreen.biz
    MomsGoneGreen

    Answer by MomsGoneGreen at 8:26 AM on Mar. 31, 2009

  • Dave is great. Also, you might be able to contact the hospital or collection agency and work on a reduction of the bills and a bill paying agreement.
    Anonymous

    Answer by Anonymous at 10:14 AM on Mar. 31, 2009

  • www.uanditrade.com to trade items such as cookware, outgrown clothes, etc. And Freecycle.org in your city.
    BingsMommy

    Answer by BingsMommy at 2:55 PM on Mar. 31, 2009

  • I have a girl on my team who was having your problems and was able to pull herself out of the debt and now she's making good money with me and doing well. I am an Avon Unit Leader and would love to hire you to work with us. Email me for details and we can get you started!
    usbornebooksdh

    Answer by usbornebooksdh at 8:21 PM on Mar. 31, 2009

  • I'm glad that you are trying to get out of debit. It can be very scary, and most people avoid dealing with their problems until they are in to deep. My suggestion would be make more money! I have been running a internet business from home during my kids nap time. I have had success with this business, and it is something that the average Jo can get into and start making money pretty fast. I'm am actually trying to pay off debit too. All the money that I make I have been paying off hospital bills. It is so nice feeling like i'm getting ahead. I hope that you can find away to do the same thing. If you would like more info on what i'm doing ,message me ,or here is my website. http://AmmyWilkins.MyWorldResults.com
    Just keep trying!!:)
    zipitty

    Answer by zipitty at 12:38 AM on Apr. 2, 2009

Join CafeMom now to contribute your answer and become part of our community. It's free and takes just a minute.