How do I get out of debt?

Question

I have gotten myself into quite a lot of debt. I cannot afford my credit card payments--they are so high. I have done this before, and ended up refinancing my home, You think I would've learned my lesson, but I went and got myself into debt again.

Are there any suggestions anyone can give me to help me out? Is there a letter I should write to the credit card company about lowering my payments? Anything would be appreciated.

But please, nothing insulting or critical.

Answer 1

As far as i know,this is a question with many different answers,it is really depend on the judgement of yourself,provide a great resource here for reference though.http://debt-relief.expertips4u.info/debt...

Answer 2

Either you refinance your home again, or you go to your bank and ask for a loan ( a consolidation, with which you'd pay all your credit cards in one shot and end up with one manageable monthly payment to the bank) Or you continue trying to pay your credit card bills as best you can. In the meantime I would put these cards throught the shredder and try to start living moe modestly. Or (last option, perhaps, though you'd really have to be in a whole lot of debts:) sell the house, pay all those debts with whatever cash you get from the sale and live in a small apartment until you get back on your feet.

Answer 3

As you have found, shifting your credit card debt onto your home wasn't a good idea.  It sounds like you really need help with a realistic budget and learning to live within your means.

You can try to negotiate with your creditors but if you have nearly maxed out credit cards, it is unlikely you will be successful.

Check this site to find a Consumer Credit Counseling Service in your area:  http://www.nfcc.org/.  They will review your finances and advise you how to proceed.  They have a debt management program available if you qualify.  These are legit, non-profit companies.

Answer 4

very simple answer, stop spending more than you make and buy only what you need and not what you want.

Answer 5

Ok, I had the exact same problem. Im still dealing with it. Check out in your phone book and look up credit counselling. You will need to contact a program that will put all your payments into one payment. You will need to abmit to shame and deal with it. It will hurt your credit for a couple of years but it will heal just as quick.

Answer 6

Nobody is going to wave a magic wand for you because you are greedy.  

Go ahead and call to ask if they can lower your payment.

Answer 7

Your debt isn't a problem, it's a symptom of another problem: Over spending. Your underlying issue is that you do not have a budget. Most people see a budget as a negative, it's actually a positive. You cannot work all day, every day, every week and simply hope for the best. You need a plan, you need it written down, you need to do it today.

I build an excel spreadsheet and simply treated as if it is my checkbook balance. I have running out-go's and incomes and I can be sure I can cover all my expenses.

Write down all of your income, figure out what you can sell, where you can get a second job.

Answer 8

I think you just might try a federal  money grant ....check this http://draxoni1.fedgrant.hop.clickbank.n...

Answer 9

These folks have all of the answers you need about debt to put your fears to rest.

Answer 10

I also had a mountain of debt, unfortunately became critically ill and then disabled; couldn't afford anything more than the essentials on the SS Disability checks I received, so I was forced to declare Chapter 7 bankruptcy. I don't recommend this unless your in that situation, but because of the requirements to file the bankruptcy I had to go through debt counseling and debt management course that actually helped me immensely to live within my means!! (who would have thought!!) Any how, you must beware of all the numerous debt counseling agencies advertising out there these days, many are cons and swindles...my friend was taken for a couple of thousand dollars, and still had all her credit card debts on her record!!  Recommended by Suze Orhman is a great agency that is recognized by the federal government...go to www.nfcc.org , click on take the first step and it will bring up a page to enter your zip code, state etc...then it will give you agencies accredited by this program in your area....The debt counselor will assist you in many ways....Good luck.

Answer 11

I would recommend calling each creditor and trying to work our an arrangement because it will be much quicker than through writing. You may be able to settle some of your debts with them for a lower amount than what is due. Be aware that if you do get a settlement it will report to the credit bureas as a settlement rather than paid in full.. . but that may be your best option.

Either way, be sure to make payments every month, even if they are small... send whatever you can afford to establish payment history and prove that you are making a good faith effort -- they will be more likely to assist you.

Answer 12

I can relate to what you're going through and yes you can write a letter to your creditors negotiating waving the interest charges and lowering payments.  Just explain your present situation and write a repayment plan.  Credit card companies like it better this way than not being able to collect at all.

This site might be able help:  http://www.happygodebtfree.com