I Need Help Getting Out of Debt I need help please?

Question

About two years i bought a new car, it is now repossed, and i owe a bank around 9,000 dollars, i then lost my apartment and not sure what to do to resolve my eviction with the company, my power bill did not get paid. i not only owe the power company, but around five to six other companies money. i really would rather not have all this on my credit. i really messed up alot and i would like to fix my credit and clear all of this up but i am not sure what or where to start i have over whelmed myself with my mistakes and debt. where do i start, should i claim bankruptcy? i dont know how to fix this if you can help me please...please ... any advice would be great. i am a server now on server wages plus tips. my average take home PER week is anywhere from 200 to 300 dollars plus a fifty dollar check every two weeks and my rent is 350 a month. PLEASE PLEASE help me if you can or willing in any way. I would just like to get out of Debt and soon live my life with out debt collectors & bills

Answer 1

Bankruptcy is not the answer.  Live within the income you earn and do what you can to increase your income.  Unfortunately there is not quick fix.  The repair will take focus and determination.

Get to the library and borrow a book from Suze Orman or other authors who guide people toward smart financial decisions.  You can get yourself out of the bad financial situation if you focus.  And once you do think of how proud you'll feel.

Answer 2

aw. first of all try to think positive..a negative outlook would just make things worse for you that they already are.. secondly, seek help from good companies. going online is a good idea, search for something like "debt consolidation" or "quick debt help" or something so you could fix your loans. i know of one site, http://instantloansearch.com try it. i hope it'll all be okay soon dear. goodluck!

Answer 3

Filing for bankruptcy cost money too and would not help you. You might try to make arrangements with the bank and see if the loan can be repaid over a slightly longer period, thereby decreasing the monthly payment even though you would have a small amount added to it. You might also try to talk to them about consolidating all the other debts you have, making it a single loan.  You'd  have to pay for quite a few years, but it would be manageable IF you brought all your other spending under control, which would mean living like a monk for a good while. But that would be the price: no easy solutions here.

Answer 4

i don't think you can declare bankruptcy on utilities. if your car has been reposed why to you still owe 9000 dollars? the united way has a credit counseling service. it cost like $30 but they'll look at all  your statement and make a plan for you.

my advice is to live more frugally, you probably didn't need a brand new car, and you should find another job if this one isn't paying enough.

Answer 5

I recently took a financial course by Dave Ramsey. I did not have any debt, but many of the people in the class did. I felt like he gave really good advice on just how to pay off the debts. It worked well and changed the lives of people I know personally.

These are the steps to follow not just for getting out of debt, but for long term control of your finances:

http://www.daveramsey.com/etc/cms/baby_s...

Start by doing a written budget every month, here are some forms to use: http://www.daveramsey.com/fpu/home/?Fuse...

It may be worth looking into if there are any classes in your area. http://www.daveramsey.com/fpu/classfinde... They last 13 weeks. If you can't take a class you could consider purchasing his course at a discount on his website or you can also check out books by him at the library. Look for 'The Total Money Makeover'. There is a new one out, but the one I used was from I think 2003, the principles should be the same.

Good luck to you. You are doing the right thing by starting to do something about it. There are many people who have been where you are and they have survived!

Answer 6

I lived in that situation where you need the conveniences (like a car), but really can't afford them with the current job.

Maybe public transportation or carpooling in someone else's car would help you save now.  I took on a passenger to drive to school with (paid half the gas). I got a better paying job with more hours. Got an education in a field that pays well.

Filing bankruptcy follows you for a long time.  I would try alternatives.  Consolidate debts if possible.  Reduce/eliminate all expenses where able (don't NEED cable TV).  Pay all extra money on debt with highest interest rate (end up paying less out in long run).  Make a spending pattern that will get you out of debt and keep you out of debt (I use CalendarBudget.com to understand how my present spending is going to affect me in the future and to correct any money problems).  There's a blog there too with other good money management ideas.

Get the better paying job and believe in your self.  Trust that you have the ability to succeed at anything ... you just CHOOSE to.

Answer 7

My fiance and I live off of $1000 a month and we pay $350/month in rent. My advice to you is to live within your means. For now, cut WAY down on your expenses. No new clothes, alcohol, cigarettes, makeup, etc. If you don't need it, don't buy it. Use coupons for groceries. Turn off and unplug appliances when you aren't using them. Buy 1 Compact Fluorescent Bulb for your apartment a week until you've replaced them all. This will lower your electricity bill significantly. If you pay for water, put a half gallon jug of water into the back of the toilet, you will save a half gallon every time you flush the toilet. Over a month, it will save you at least 30 gallons of water.

If after this, you're still struggling to pay the rent and necessary bills, think about getting a roommate.

Good luck!