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Debt How the hell can i get out of it???

23 years old & have 4 thousand dollars in debt, i am a single mom just trying to make i just feel so ugh......... Anywo the debt is from dental procedures i had to have done & school loans how can i start taking the steps to get out of this i live in Denver CO & let me just say the goverment programs suck out here!

 
Anonymous

Asked by Anonymous at 12:22 PM on Jan. 7, 2011 in Money & Work

This question is closed.
Answers (8)
  • A third here for Dave Ramsey. There is a Dave Ramsey Fan group here on CM if you would like to learn more.
    Candi1024

    Answer by Candi1024 at 4:23 PM on Jan. 7, 2011

  • A lot of moms here like the Dave Ramsey plan... you can check it out.

    Our debt management method? Write down EVERY creditor, amount owed and minimum monthly payment. Put those minimums into your budget (you can do this in an Excel spreadsheet) and figure out the rest of your expenses. Then subtract all those expenses from your income. Try to put SOMETHING into savings monthly. Then any extra goes to the creditor to whom you owe the least. Send that extra cash there with the monthly minimum. When that lowest bill is paid off, tackle the next lowest one. And so on, till they're all gone.

    If you make less than you owe monthly, look at what you can cut and what you can do to increase your income. Is Dad paying child support? Don't let him slide.
    gdiamante

    Answer by gdiamante at 12:27 PM on Jan. 7, 2011

  • Girl I hear you, I had a debt for about the same amount. I ended up picking up a part time job with crazy hours (early morning and late night while dh was home) so I didn't have to pay a baby sitter, I opened up a second checking account specifically for debt payment and used all of my income from that job to cut down on debt. I paid it all off in 8 months. It was hard, but totally worth it.
    Anonymous

    Answer by Anonymous at 12:38 PM on Jan. 7, 2011

  • You need to spend less than you earn. Be as frugal as possible. You may want to join the CafeMom Frugalistas group
    rkoloms

    Answer by rkoloms at 1:12 PM on Jan. 7, 2011

  • We are all in the same baot it seem like you will never get out from under the more you pay the broker youll get.pray and ask God to give you the wisdom to help you out on this.your not alone
    tinamarie1972

    Answer by tinamarie1972 at 12:29 PM on Jan. 7, 2011

  • I agree with gdiamante, check out Ramsey. :) The whole snow ball effect (tackling your smallest and then adding what you were paying to it on to what you're paying to the next one) is probably your best bet.
    Jessica157

    Answer by Jessica157 at 12:34 PM on Jan. 7, 2011

  • You are lucky thats all you have in debt. How is your credit? Are you in collections? If not call the dentist up and ask if you can make a payment plan. If you have decent credit and a job you can go to a credit union(not a bank) for a loan to pay off the Dentist. You can usually spread payments over 3-4 years. As for your school loans, have you filed for a hardship deferment? You just have to watch the money after that. No meals out. Cut or change your cell phone plan or your cable or internet. No extras until you get the bills paid off.
    itsmesteph11

    Answer by itsmesteph11 at 3:21 PM on Jan. 7, 2011

  • Discipline, honesty with yourself, and keeping track of every dime and having a plan for every dime.
    misses_nick

    Answer by misses_nick at 3:34 PM on Jan. 7, 2011