How can I get out of 20K of debt ?

Question

Okay. I've been in debt for 20 years. From 2,000 to 20,000 Been up and down and still in the hole. I have no assets except a job. Paycheck to Paycheck. Short of living in a car and the Y to get ahead I need a serious sage or person whom can send me the answer from on high. IM not a flake and I do not intend to file bankruptcy. If there is clean fast way to clean the slate and help me start to save instead of paying 500 in interest on Credit Card debt Let me know. Any idea is welcome short of selling pot or something of that sort. I have no relative so I can't borrow from them.

Answer 1

First, you have to realize and accept the fact that there is and won't be any easy way out of your debt without certain consequences.



Here are a few suggestions from someone who's been and done that:



1. Go to a debt consolidation company, they will make negotiations on your behalf with your creditors for a lower monthly payment. Basically, you will make a agreed upon monthly payment to this company and they will in turn disburse the money to each of the creditor each month. You can call them and tell them your situation as far as the amount of debt and your income. I can suggest one I;ve used in the past, Debt Options in FL, 800-523-0102. It will have a negative impact on your credit score, but at least you will be able to pay down the debt in a fairly short time, and you will only have to repay a small percentage of the actual debt, maybe around 10-30%.



2. File bankruptcy, this is the fastest and least painful way, you can file for Chapter 7 and just walk away from all of the debt. Even though the laws have changed, you can still file for a Chpater 7 or 13 bankruptcy depending on your particular situation, you would have to speak with a bankruptcy lawyer. The fees are probably around $1000 to $2500.



If you have been in debt for 20 years, then you really need to review your situation seriously and make a decision if you truly want to regain control of your life and finances. It sound that at your current pace, you will still be in debt another 20 years from now!



As painful as my suggestions may sound, it at least provides a way out for you and then you can start all over with a clean slate, no debts! Trust mem there are millions of people filing bankruptcies every year, so it is not a life ending move, but rather a way to give you a new start.



It's your life, you can decide as you wish...good luck!

Answer 2

No easy answers on that one:



*Pay off the highest interest first. Concentrate on that. You can make minimum if you have to on others....BUT you can't keep doing that...you will never get out.



*Is there anyone that could co-sign on a low interest loan?



*Have you gone to school? If you have a really low income you can grant money. PLus, you will get a higher paying job in the long run.



Good luck, it's tough...I'm still working on it. It takes a long time. But...you can do anything you put you mind to.



And PEOPLE, come on...that don't offer 0% to folks that have crazy debt. They just don't. Oh, and one last thing....YOU MUST STOP USING THEM! That is the big mistake people make, they pay it down then charge it back up. You have to be on a CASH ONLY SYSTEM OR NEVER PUT ANY MONEY ON YOUR CARD THAT YOU ARE NOT GOING TO PAY OFF IN FULL THAT MONTH!!!! THERE IS NO OTHER WAY!

Answer 3

Like a previous poster said, switch to a zero percent interest card (but watch for the ones that charge you to do this (see if you can find a no fee transfer card) maybe CHASE?) Any extra $$$ should be poured into your credit cards. If you can't find a card for a good match or even apply for one, call your current card company to see if they will lower your current rate. You might be suprise! If they think they are going to lose that $500 a month they will lower it quickly! Good luck - stay strong! May even need a 2nd job that you could quit when you are paid up! PS - Quit using your CC!

Answer 4

You don't have the option of filing bankruptcy anymore. They changed the laws on it last year.



Different states have different laws regarding debt. Your best bet would be to go to a credit counseling service. Most of them are free for the counseling and if they help you consolidate your bills it's about 5 dollars a month to them. They will also help you come up with a realistic spending plan and walk you through holes in your finances.

Answer 5

One of the first things I'd do is get that credit card balance transferred to a 0% interest card (usually 6 mos to a year) and pay like crazy on it to get it down.

Answer 6

OH MY GOD, I am so sorry that you are in such trouble, please do me a favor and find Primerica in your phone book, and call them. Go to one of their career nights and see something that might make you cry. NO BS, I swear to the lord above.

Answer 7

Drop me a line.

Answer 8

your all alone on this one