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3 Bumps

Need options-over our head in debt?!

My husband and I have accumulated debt over the past years. We are only in our twenties but between school loans, and stupid mistakes by getting credit cards when we were just 18 and things we ended up with alot of debt. I know there is debt consolidating and claiming bankrupcy out there but I've never known anyone who has done either of these things. Dont get me wrong Ill gladly pay back what we owe but with fees ontop of fees what they are billing us for is much more than we should owe. Any ideas about how to go about doing either of these things? I am just looking for any friendly advise. Thanks :)

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Anonymous

Asked by Anonymous at 5:44 PM on Jun. 27, 2011 in Money & Work

Answers (9)
  • The two options you mentioned are the only ones you have.......consolidation, gives you the option to pay at a lower interest rate or within your means of paying.
    older

    Answer by older at 5:50 PM on Jun. 27, 2011

  • This is what I did. I am not sure if this is the best idea, but maybe you can grab an idea or two out of it.

    My SO went to school and I didn't so we have only his school loan. I had a lot of debt from stupid errors I made while I was young. He went back to school to get the minimum amount of hours needed so that it would go defferred. I did not go to a debt consolidater or claim bankrupcy. I pulled up a credit report and called the lenders individually when I had the money. I started selling things I could do without in my house on craigslist and ebay: Clothes, Jewelry, Camera, Camcorder, ETC. My family actually gave me things they did not use anymore and I sold them. I earned $3000 and used all of that to pay off $8000 of debt. You can always hustle the lender down!
    In the mean time, rent and bills always came first. We downsized big time!
    His loan will be all that is left.


    Gingerwheel

    Answer by Gingerwheel at 5:56 PM on Jun. 27, 2011

  • Ditto Older's answer ~ pay off the lowest balance, highest interest debt first. See if you can work a deal with the school loans ...
    tasches

    Answer by tasches at 5:59 PM on Jun. 27, 2011

  • You can always try to work directly with the companies for a compromise, I did. I made an offer and they took it. Also I work from home, for a great company if you are looking to earn extra money. My business is incorporated into my life & doesn't consume much time.
    1northwestmom

    Answer by 1northwestmom at 6:15 PM on Jun. 27, 2011

  • I understand. Who doesn't have debt these days? Have you considered trying to work in your spare time from home to help pay off your debts faster? I am a stay at home Mommy to my 9 month old daughter. I work with a great team of Moms; we are dedicated to helping other Moms work from home. We have free training, and unlimited support. NO Selling, NO Parties, NO RISK!!! It's an enjoyable and flexible home business.

    I would love to give you more information and help you reach your financial goals!

    Natalee
    Proud Member of Internet CEO Moms! Helping MOMS Work from Home since 1999!

    Visit my website:www.FamilyCEOMom.com

    Get to know our Team on Facebook: www.LikeInternetCEOMoms.com

    We are the largest group of Moms working from home online!

    Kaye924

    Answer by Kaye924 at 9:11 PM on Jun. 27, 2011

  •  



    Hi Get Excited & Stay Excited™!  I can relate to this! I have a lot of debt from credit cards, student loans, medical, etc. Luckily I found a program that I started in Dec 2010 & I've already paid off 2 cards & should be finished w/in 12-24 months. The program is part of my FreedomPass Card I have, but you can get that program separately if you want. I also got a Financial Coach who has helped me to keep on track (listen to her recording: 218-936-7995 code 569139).  Very affordably priced both the program & the coach.  I highly recommend you looking into them.  HTH Blessings


    blessed2behome

    Answer by blessed2behome at 6:05 AM on Jun. 28, 2011

  • Hi Get Excited & Stay Excited™!  Oh sorry-- to answer straight I am doing debt consolidation, but its actually more than that... financial education, credit repair, bankruptcy counseling & more.  Bankruptcy should be your last resort and if your situation is really dire.  But you should seriously click on the links previously provided for the program & listen to the coach's recording... you'll get some great help that way.  Said a prayer for you-- much success... Blessings

    blessed2behome

    Answer by blessed2behome at 6:09 AM on Jun. 28, 2011

  • Check out Dave Ramsey's book "The Total Money Makeover" from your local library. He explains it all. Do these steps in order:

    Step 1: build a baby emergency fund so that you can stop charging on credit cards
    Step 2: Put every extra penny toward paying off your debts, lowest balance to highest balance. It's called a debt snowball.
    Step 3: Increase your emergency fund to equal 3 to 6 months worth of expenses (in case of job loss, layoff, or severe illness.)
    Steps 4, 5 & 6: Contribute at least 15% to your retirement fund, contribute to kids' education funds, pay off mortgage.
    Step 7: Enjoy your wealth and give!

    These steps are PROVEN to work. Check out the Dave Ramsey Fans group here on CM for more tips and plenty of support!
    michiganmom116

    Answer by michiganmom116 at 8:19 AM on Jun. 28, 2011

  • I second the Total Money Makeover! You can also check out www.daveramsey.com/fpu for a Financial Peace University class in your area.

    The two big keys are to minimize your expenses as much as you can, and increase your income. Cut out anything that's not necessary to survive (shelter, food, basic utilities and transportation so you can get to work are necessary, cable TV is not). Pick up extra jobs like delivering pizzas, cutting lawns, babysitting, maybe even consider direct sales. Sell everything you can to the point the kids thing they're next.
    NooraK

    Answer by NooraK at 9:53 AM on Jun. 29, 2011

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