Look into borrowing The Total Money Make-Over from the library. It's by Dave Ramsey. It explains how to pay off your debt quickly using the snowball effect (which is a lot like what the PP described to you). It works.
Also check out the Family Finance message board at www.babycenter.com there is a ton of info there.I am in terrible shape... I have bills and creditors calling all the time can anyone offer me any advise HELP!
You need to contact your debtors and let them know about your situation. In the end, they just want to be paid...even if it's $5 a month. Don't wait around and let them go to collection because the collection agency will continue to tack on fees. Close your charge card accounts and set up a re-payment plan with each one. They don't want to hassle you, they want to get paid.
I went to a consolidation agency and they helped me out quite a bit. Make sure it's a non-profit one. I had to pay more than before, but they got the interests rates down and my payments way down also. Sometimes you have to pay more, they will work with you. You might be broke for a while, but at least you won't have to file bankruptcy.
Good luck hun, I know its hard :)
Oh the memories. My advice is not a quick fix, I will tell you that. If you are in that much debt it will take a long time. First, I take my bills that HAVE to be paid. Rent, power, etc. These you can't ignore. Then I see what I have left over. Depending on that, I make a plan on what debt is the most urgent. The one with the highest balance, the one that has the highest interest rate......then I say ok, I can afford to pay them 50.00 a month. (I recommend taking the one with the lowest balance.) Now, at 50.00 a month I will have them paid off in X amount of time. Meanwhile, I pay the other companies like 15.00 each. They won't like that, but there is nothing they can do because you are paying something. Then when loan number one is paid off, you take that 50.00 and add it to loan number two (that you have been paying 15.00 to.) Now you are paying loan number two 65.00 per month, while the other loans are still getting there 15.00. When loan number two is paid off, you pay loan number three 65.00+15.00 so 80.00 per month, and continue this until all loans are paid off. This method will give EVERYONE some money so that when they call you can say ';I paid you 15.00 this month, that is all I have, I will make another payment when I have more money.'; If you are interested in doing this method I can give you more detailed info. nmskougard@yahoo.com. You have to be patient and VERY organized. GOOD LUCK.
Just be still, God will provide your needs, pay what you can,a little at a time before you know you will be fine. Gary
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