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what would you do if you had more bills to pay than what you make and those bills had to be paid?.

we are really struggling we have way more debt than what we make. I have been over and over the bills and I don't just wanna up and file for bankruptcy we made a few bad choices w buying my husband a truck which we no longer can pay the payments I've put it up for sale we still have my car payment and a small personal loan we had to have to cover expenses and a few credit cards w good interest rates but canceling will hurt our credit which i don't want we've worked so hard to build it up where it is now our rent is ridiculous $900 per month there is nothing cheaper in the area I use the internet for work from home for extra income we have another small loan we have to pay I'm just pulling my hair out trying to figure out what to do because anyway we do the budget we end up in the negative we have had to do payday loans to help pay for some of this idk what to do anymore what would you guys do in my situation?

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Anonymous

Asked by Anonymous at 1:17 PM on Mar. 26, 2010 in Money & Work

Answers (7)
  • Were in that situation every month and we end up playing the juggling game. First off, STOP getting the pay day loans, I know it will be hard, but youre gonna have to tough it out and stop getting them NOW. They are just a vicious cycle and will drive you firther in debt. Is there anyway you can pay off some of your stuff with a low interest credit card so that you can reduce several payments just into one? That might help a little. Maybe go through your guys stuff and see what you no longer use or need and try selling some stuff on craigslist,ebay or have a yardsale to make some extra cash. We've pretty much eliminated all the unnessary bills that we had, sold one car and kept the one that we already have paid off. No credit cards,if we can't pay for it with cash, we just don't buy it. If there is an item we want or need and don't have the cash, we use layway plans when possible. Good Luck,take a deep breath and start again.
    kimberlyinberea

    Answer by kimberlyinberea at 1:31 PM on Mar. 26, 2010

  • When I was in that position there was no home net or cable. I paid the rent 1st, bought what food i could, and then did what I could with the rest. Nothing but the rent ever got fully paid, but at least I knew we had a roof over our heads.
    Good luck
    mommymeg03

    Answer by mommymeg03 at 1:45 PM on Mar. 26, 2010

  • Cut up cards... PERIOD. If they aren't there, you won't use them.
    Cancel internet/home phone/cable, etc. They are not a necessity.
    Sell the truck for what you owe or have someone take over the payments.
    STOP the payday loans... they only get you further in debt.
    Collect anything and everything from around your home that you can sell and yard-sale it/eBay it ASAP.
    Go to store brand foods only, no eating out.
    Get a 2nd job, even if it's fast food or whatever.
    Call ALL the people you owe and tell them your situation. Try to work something out with them. Even if you pay $20 a month, that's better than nothing at all. Chances are, if you send it to them, they will take it.
    Call your local dept of social services and see if you qualify for any assistance.
    Try reeeeeeeeeeeally hard to NOT file bankruptcy... PLEASE. We literally had NO choice and STILL had to do all the above (DHs business partner embezzled a TON of $)...
    Luvmylilmonkies

    Answer by Luvmylilmonkies at 2:28 PM on Mar. 26, 2010

  • BK is NOT worth the money it costs and the struggles it causes.
    Have you looked into Dave Ramsey? Your local library may have some of his books.

    Good Luck!
    Luvmylilmonkies

    Answer by Luvmylilmonkies at 2:29 PM on Mar. 26, 2010

  • We've been there, we actually had a good friend/neighbor we confided in give us the Dave Ramsey book "Total Money Make Over."

    It really is a fast, easy to understand, read, and really has changed our financial lives. I totally recommend his "snowball" out of debt program.
    Anonymous

    Answer by Anonymous at 2:56 PM on Mar. 26, 2010

  • credit counseling is a step under bankruptcy and will harm your credit for years to come. I know you think you have great credit b/c you've made your payments on time, but when was the last time you checked your credit score. If you have more money going out than you have coming in that effects your debt-to income ratio which effects your credit negatively.

    There are other debt relief options out there.

    I am the owner of Dynasty Financial Services and

    Anonymous

    Answer by Anonymous at 10:51 AM on Apr. 7, 2010

  • Credit counseling is not for everyone. It is a step under bankruptcy and harms your credit for 7-10 years.

    I know you think you have great credit b/c you make your payments on time, but when was the last time you checked your credit score? If you have more money going out than what you have coming in and you are over 50% of your credit card balances your credit isn't as good as you may think.

    I am the owner of Dynasty Financial Services, if you would like we could discuss this further and I could help you find the option that is right for you, or at least lead you in the right direction. You could message me, or contact me @ 877-642-4812. You can also visit my website dynastyfinancialservices.com and learn about your options.

    I wish you the best of luck!
    DFSNIKKI

    Answer by DFSNIKKI at 10:58 AM on Apr. 7, 2010

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