How do I get out of debt?

[e-lie]

How would one go about getting out of 11,000.00 worth of debt for me consolidation is out of the question.Do I just pay it down ?Any programs you guys can offer?:rock:

 

[Evzone]

How would one go about getting out of 11,000.00 worth of debt for me consolidation is out of the question.Do I just pay it down ?Any programs you guys can offer?:rock:

Ouch! Goodness gracious, $11,000 USD? Could you provide us with some more details as to what this came from? Please tell me it's not gambling debt.

But pretty much, yeah, you just pay it down. Sorry man. There's really no quick fixes. Cut back on the late night Taco Bell runs and see if you can trim some expenses. People end up wasting a lot of money on things like that, and it does add up. It won't get you out of your situation completely, but everything helps. What is your income like?

When you get some time, read The Millionaire Next Door. Although retrospective, it will help you from not getting in this situation again.

 

[SmoothTalker]

My advice, which is effective but a bit unorthodox, is this.

Put every spare penny towards the debt. If you have any investments, sell them and put them against the debt (unless they are stocks that are currently waaaaay bellow purchase price but you expect to rebound). If you have savings, obtain a line of credit and pour the savings against the debt instead.

Why? Because depending on the type of debt you're paying interest at 5-20+% per year, GUARUNTEED.

Tell me an investment that gives that kind of return every year for sure?

And as for not having savings, IF you run into trouble you can borrow money and then pay interest on it. Isn't that better then already paying interest on your loan while having savings that are essentially just sitting there? I know savings accounts pay interest, but its always much less then interest on debt.

 

[insidious]

$11,000? Holy crap.
OK, when an alcoholic embarks on sobriety for good, the first thing they tell them is to stop drinking.

In your case...stop spending!

You'll never bring your debt down if you keep adding to it. If you're serious about this, you need to change your outlook and expectations.

Learn to grocery shop and learn to cook and learn to stay home and be content with what you have. Until you dig your way out.

I hope there is no one named "Guido" involved in your debt

 

[Maxtro]

Stop spening, lock up your credit cards.

Decide on the most amount of money you can spend towards your debt. Pick the card with the highest APR and attack it and pay only the minimum payments on the lower APR cards.

Here is a rough outline. $100 towards monthly payments

Card A $10
Card B $10
Card C $80

Once card C is paid off, keep using that $100. Pay the minimum on Card A but put $90 towards Card B. Once card B is paid off, then put $100 onto Card A.

I'd also suggest calling the credit card companies and asking if they can lower the APR. It never hurts to ask.

 

[e-lie]

I was a victim of credit fraud.I hear that this website www.tdiw.com is good I also here that my situation is not uncommon and can be dealt with by a credit counsel .Credit cards suck any other advice?

 

[Maxtro]

Credit fraud is a whole different matter. You should be fighting as hard as you can to get the debt wiped of, if you haven't already.

 

[backbreaker]

i saw on NBC this morning this doctor and lawyer got married and they were combined half a mil in debt. they had paid 12k of it off. wow.

that kinda defeats the purpose of becoming a doctor/lawyer.

their output for loads and debt was 4100 a month and I that doesn't sound like a lot of principal payment either at 500k.

talk about spinning wheels

 

[speakeasy]

i saw on NBC this morning this doctor and lawyer got married and they were combined half a mil in debt. they had paid 12k of it off. wow.

that kinda defeats the purpose of becoming a doctor/lawyer.

their output for loads and debt was 4100 a month and I that doesn't sound like a lot of principal payment either at 500k.

talk about spinning wheels

Yeah, given that we're talking a doctor and lawyer, they probably spent 6 figures on their wedding and have 2 leased luxury cars in the garage. People think making more money is the answer to their problems, but all that does is give them carte blanche to spend more. Parkinson's law at work.

 

[e-lie]

I have already filed a report but what do u guys think of that site www.tdiw.com ?

 

[r0cky]

I think you're getting a commission from that website.


My advice:
Stop spending money on useless crap and be more responsible.

 

[IsiMan84]

If you were a victim of credit fraud wouldn't the credit card company have some sort of account protection program where fraudulent charges are wiped off the account if the card is lost/stolen/etc. (like you see in the commercials). But in any event, do not take the advice of the guy above who said to wipe out your savings and use credit cards instead. That is stupid because credit cards can have anywhere from 10-25% APR, and your savings is the only real money you have. You need that money for a rainy day. And you may think it's raining now, but a simple freak accident could easily leave you with medical bills in excess of $20k, so $11k is chump change in the grand scheme of things. Your best bet is to cut a few costs here and there and put it towards the debt, slowly but surely chipping away. No more TCBY or strip club visits or whatever your vice is. At least for the time being while your report is filed. Best of luck.

 

[e-lie]

bump

 

[e-lie]

Hey whats else can I do?

 

[Alle_Gory]

Credit fraud? Why would you be paying a debt you didn't make? This doesn't make sense.

Don't spend money you don't have.

 

[azanon]

Yeah, given that we're talking a doctor and lawyer, they probably spent 6 figures on their wedding and have 2 leased luxury cars in the garage. People think making more money is the answer to their problems, but all that does is give them carte blanche to spend more. Parkinson's law at work.

or.... they went in debt to pay for medical and law school. I hear medical school is especially expensive. I presume they also have day-to-day expenses during these schools which they most likely wont have a job to pay for.

 

[azanon]

OP -

Put all extra money towards the debt and cut out unnecessary expenses. Are you wanting something that sounds more eloquent and is no more accurate?

Next, cut all your credit cards up. Try a bank debit card that comes with a checking account.

 

[OzyBoy]

Create a budget, cut back on everything you can, get a second job and just throw every last cent you have left over each pay day. You will pay it of very quickly if you do this. I speak from experience. :d

 

[spider_007]

this is how you do it.

Pay the highest interst rate credit first, in another words, pay minimum payments on averything else, and the rest pay to the highest interest card.

Once you pay that off, go down the line. Take that money you would be paying for that high interst card (that you just paid off) and add it to the minimum payment that you ware making on the second highest card....

and keep going.

The more cards you pay off, the more money you have to pay the remaining cards/bills.

If your impationt kind of guy, you could start with the card with the lowest amount, that way you'll pay it off sooner, and you'll feel satisfaction and motivation to keep going.

 

[MascaraSnake]

two words...CHEAP OUT.

I do with the smallest things (I'm a poor college student). Try to not ever sacrifice quality for price...there are high-quality products that are bargains everywhere.

The basic stuff is easy...use coupons, don't eat out that much, make a budget, etc., but here's a few suggestions I use if I'm in a pinch...again, I'm a tightwad artist so you might not take to these.

- Save every bit of change you get, and I mean every bit. Keep a jar or piggy bank and empty it out when it gets full...one time I had 20 dollars in mine, and that was only about 4 months of change.
- If you buy pre-packaged or deli-sliced meat, don't. Buy a mid-sized ham/side of beef/turkey breast and have the deli cut it for you. Haven't tried this with cheese.
- Use public transportation as often as you can if you're in a good-sized city. I wouldn't ditch the car unless you're in a very well-covered area.
- Cheap out on toiletries and buy in bulk whenever you can. My skin and hair are in great shape, and I do all of the morning rituals with bargain basement products. Cologne's a different story, but there are still deals to be had with your favorite scents if you look for them.
- Sell your CDs, and rip all of the songs to a cheap MP3 player to tide you over (it's technically illegal, but nobody will care and you can always buy the CDs again). For DVDs, get a cheap NetFlix account. For books, dust off your old library card. My local library (Minneapolis) tends to have a pretty good selection moviewise too.
- If you have basic and premium cable, think of getting rid of it. Premium is a no-brainer, but you can buy a lot of the TV shows on basic on DVD nowadays. You can make up for the news programs by subscribing to or reading a few different papers online.