I need to get out of debt?

Question

im not that far in only bout $6,000. but im pregnant & gonna be taking time off work & i only get paid a % of wat i made which was pay check to pay check & still owing. i need something that wont damage my credit report. ive heard about debt consolidation but im not sure.

Answer 1

See if you can listen to Clark Howard on the radio or search for his website. He is great with money.

Talk to those you owe and work out payment plans. It is better if you do it yourself and show that you are willing to pay. Pay all future bills on time. This will help your credit score.

I don't recommend consolidation for several reasons. You can do this yourself. Many of those companies will charge you money, which is NOT what you need.

Hey, and congrats on your pregnancy. Take good care of yourself and try not to stress too much. Just look at dealing with your money situation as a part time job and pick at it every day.

Have anyone who can help you a bit? Remember, emotions run higher when you are pregnant (she says from experience!).

And enjoy your pregnancy and your new baby. This is a special time in your life.

Best,

JJ

Answer 2

Jeff's answer is 100% "on the money" (sorry for the pun).

check out daveramsey.com and the total money makeover

Answer 3

Congratulations on trying to stay clear while it's still a relatively small amount! Make sure you keep paying at least the minimum balances on the debt while your paycheck is reduced.

The kicker to debt-consolidation services is that most of _those_ wind up on your credit report, just like bankruptcy does! And I believe it stays on there just as long. Which drags down your credit score HUGELY!

Instead, try to see if you can make a little extra money even while you're home: maybe do a little writing/copy-editing on the web for a few bucks? Or, once baby's here, maybe you can do some baby-sitting? After all, you'll be looking after ONE baby already, what's one more? :)

Just make sure you're at least making minimum payments on the debt - that's the easiest way to keep up your credit rating. Baby adds some expenses, so make sure you budget for that as well!

Congratulations on the baby! :)

-LBF

Answer 4

Debt consolidation is NOT a scam. It helps to consolidate the debt in to one peice of debt as opposed to 6. They will also accept lower payments than your current creditors are accepting.

Answer 5

Debt consolidation is a scam.

Instead of owing six people $1,000 each, you end up owing one company $6,500.

You need a detailed written budget, so that you write down on paper, before you get paid, where every dollar you'll make next month is spent on something.

For more info on it, go to www.daveramsey.com and search "budget"