How do i manage this?.. It is taking my life away?

Question

I don't know how to manage my debt. I owed the credit cards and have to make the monthly payments to them nearly double of my monthly earnings. The payment that i made each month includes interest which is of course a higher portion than the principle amount. To be able to cover my debt payment each month, i have to make the payment for the credit card one by one so that i can withdraw (borrow) the money again to make the paym for another credit cards. It'll take me 5-6 years to be able to clear the debt if i continue to make it this way (that's also only if i do not have any additional expenditure - which is impossible). I have no other way to increase my earnings. Do you have any suggestions for how to manage the credit card payment? I'm just tensed and don't know where else to go to, so i am just writing it here to let it out, and just incase i can get any advise from you. Many Thanks

From a discouraged friend...

Answer 1

You are in a tough situation. While it is much easier to get into debt, it is much harder to get out of it. But in most cases it is possible to get out of even heavy debt - with some discipline. I suggest you take two steps right away.

1. Get on a budget. Think about all of your monthly expenses except your credit card payments. Deduct these expenses from your income and determine how much money you can use each  month to pay off your debt. If there is not much left over, try to cut back on some expenses when you review your budget. (For more on this click on http://www.vilkri.com/pubreader.php?page...

2. When you know how much money you can use to pay off debt, call your credit card companies. Explain your situation to them and see if you can work out a plan to pay back the debt at more favorable terms. Be very clear when you talk to them. Make sure that the credit card companies realize that you may not be able to make any payments if you cannot work out repayment scheme with them.

If you cannot get an help from the credit card companies, post another question to see what your other options are.

Good luck!

Answer 2

Start budgeting. You want to pay off the card with the highest interest first, and that should take up no more than 50% of your total income. I'm saying this because you can't go out of budget again, which seems to me the cause of your credit crunch. You really need to discipline yourself to keep within the budget, or else the payment's going to go on forever. The other way, of course, is to increase your income. It's risky. But what's life without a bit of risk? If I were you, I'd borrow from a bank and look around for a property worth investing in. I'd start leasing it out, and make some steady income from the rental. I'd also keep investments of gold, silver and oil, since their prospects are looking good.

Yes, I'm recommending you to get FURTHER in debt to get OUT of debt. Don't expect this to be easy or quick. But by trying to invest, it will prove beneficial to you in the future, I can guarantee that much.

Answer 3

Well, I hate to say this, but you may want to consider settling on an amount to pay back and closing the cards. It will hurt your credit, be warned, but desperate times call for desperate measures.

I don't exactly recommend doing that! But it sounds like it's your only and best option for the time being.

good luck...

Answer 4

Call the CC companies.  Tell them you are afraid you will default on this debt, which is true.  Ask them if they will help you with a low interest rate for the purpose of getting the debt paid down.  They will very likely do this for you.  If they say no, call again tommorrow and ask again.  Once you don't have the interest accruing you can get this under control.  STOP adding debt on to these cards.  If you can't afford it out of your checking account, then you can't afford to charge it either, period.

Answer 5

Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.I came across this company on NBC News Special Edition.Check it out here:

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