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How can I pay off my debt...I owe $7,640...and my credit score is 531...I need help!!!!

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Asked by Anonymous at 12:33 PM on Dec. 3, 2010 in Money & Work

Answers (8)
  • Contact a nonprofit credit counseling service.

    Answer by ballewal at 12:34 PM on Dec. 3, 2010

  • Skip the counseling service and work with your credit card company to pay off the debt. Ask them to CLOSE the account so it is more managable to pay off. It will take time, but it can be done. You can also work with the credit card company to see if they will forgive some of the interest. If you let the company know what is happening, they will work with you.

    Answer by tyfry7496 at 12:39 PM on Dec. 3, 2010

  • One bill at a time. Pay everyone at least the minimum... but pay the most expensive debt first.

    Pick the most expensive interest rate (and, truly, call and see if they're lower it, or stop the accrual --they want their money and they don't want you to go bankrupt, so they're often willing to change what they do) and add as much as you can to that until it's paid for. When that one's done, pick the next-most-expensive one and continue until you're done.

    Where to find the money? Take a hard look at your life: are you working as much as you can be? Is there something you could do in the evenings or on your weekends that you could be earning more? If your hobbies paid you money instead of costing you, you'd be doubling your money.

    Are you spending more than you need to? Why? To make you feel better? To fit in? How's that workin' for you?

    Stop eating in restaurants, including coffee shops. Shop frugally, buy used, sell stuff.

    Answer by LindaClement at 12:41 PM on Dec. 3, 2010

  • Google the name of your state and the words "credit service bureau" and see if there is a state agency that can help. Make sure it is through your state. Read anything you sign very carefully. Make sure any money you repay is going to the creditor and not a company taking a fee. You should be making the payments to the creditor. There are a lot of ripoffs out there. GL

    Answer by elizabr at 12:42 PM on Dec. 3, 2010

  • First I would cut up the credit cards. You can't get out of debt if you keep getting into more debt.
    Then get on a budget and cut your life style. If you still can't find money to put towards debt, have a garage sale, work an extra job, shovel a side walk, mow a lawn, sew on a button... find something that you are good at and start working at it.

    I personally would pay off debt from lowest to highest amounts NOT interest rates. It is hugely motivational to go from having 10 credit card bills a month to 9, and then 8 and then eventually 1. This is something that will help keep you motivated. Plus it will free up more money faster since eventually you won't have that payment anymore.

    Do call and see if they'll lower your interest rate. But remember at the end of the day interest rate isn't as important as just paying off the debt. And to pay off the debt you're going to have to have to sacrifice and work hard.

    Answer by Erica_Smerica at 1:10 PM on Dec. 3, 2010

  • Continue:

    If you can't pay off your credit cards or even pay on them right now, don't worry about it. The most important thing is for you to feed your family, pay your rent/mortgage, and then your utilities. Luxuries are obviously last, but credit card debt is NOT first. Make sure your family is taken care of.

    They will (and probably already have) called and gotten angry. You set the terms for when they call and the tone of the conversation. IF they can't accept that just hang up on them.

    Legally they can sue you the day you are late. But they probably won't get around to it for a while. In the meantime you're working on the budget, looking for extra jobs and selling everything you don't absolutely need.

    I'd also recommend Dave Ramsey's book, My Total Money Makeover. You can check it out from the library. Hope things get better for you soon! Sorry you are going through this.

    Answer by Erica_Smerica at 1:14 PM on Dec. 3, 2010

  • Tackle the smallest bills first and get those out of the way. Scrimp, scrape and save every penny you have to pay the bills off. No more Mani Pedis, eating out shopping or leisurely things until the debt is paid off. I wish you luck and hope that one of these answers i f not mine has helped you.

    Answer by Jguevara at 2:05 PM on Dec. 3, 2010

  • ANother great author on eliminating debt and gaining wealth is David Bach, books like his "Smart Couples Finish Rich" are very informative and will help you get a plan down to eliminating all your debt as quickly as possible. Look at the library, online or just walk into a book store and sit down and read it there.

    Answer by Mom2Jack04 at 2:09 PM on Dec. 3, 2010

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