Digging Out Of Debt...

I'm lucky in that the only debt I have is my car payments, and the end is in sight. I've actually been able to make a few advance payments, as I'm trying to finish paying it off about 6 months prior to when it was scheduled to be done. I'm really looking forward to having that bit of extra money, which will hopefully start going into savings. My real temptation has been to just blow a chunk of my savings and get it paid off NOW, rather than spreading it out for a few more months. I've been resisting, though, as the savings is supposed to be a safety net, and though I don't anticipate needing it, it's still a nice cushion to have. Of course, I realize I'm an odd situation, both in having little debt and having the option to pay it off quickly. That's just the attitude I have toward debt, though. I don't like the idea of building up debt if I can help it!

Hubby and I are both do-withouters not go-in-debtors, so although we did use mortgages as tools to buy our homes, and auto loans through our credit union at the beginning of each auto purchase, there is nothing else that we ever bought on credit except for ordinary purchases that we could afford to pay off within the grace period on our credit cards. We paid each mortgage and auto loan off as soon as possible, using principal only prepayments to steadily reduce the overall amount of interest paid. Anyone who has a mortgage needs to know that unless small prepayments to the principal are made on a regular basis, they are paying out hundreds of thousands of dollars just to interest and that does not build their equity in that property. So when one takes out a home loan it should never be a stretch on the budget; one always needs to leave wiggle room. Because we did without many things when we were younger, now we can afford what we want. Others we know ridiculed us for our frugal habits and spent lavishly on themselves with money they didn't have, and now they are panicking.

I wish "slow and steady wins the race" applied to debt, it would give millions of people hope. Unfortunately credit card companies don't seem to like slow at all. They pile on the late fees and over the limit fees and the "we just don't like you" fees. Arrg! It's impossible to get out of the endless cycle of fee's for some people. We have been working to be completely debt free and it's a great feeling to pay off a loan or credit card. We have a few more years of hard work and budgeting but then we'll be totally out of debt. I will be so glad when it's over. Reading some of the responses about debt due to medical bills makes me so sad. I wish I was a billionaire, I would pay off everyones medical bills!

We have just more or less cleared up all our debts apart from the mortgage and so we own no one anything. I already see the difference in that my bank account is looking healthier and no where near the overdraft. Rewind back two years and we had a three grand overdraft so we have come along way. It definately makes life more bearable even though it means we cannot just have what we want, we have to save for it first. But it is more satisfying to know we have bought something and have paid it off straight away.

Well I have no idea what it's like not to be in debt. I've been in debt since I became an adult, and it's not your average debt. I do not, and never have had credit cards. I've never had a mortgage, and I do not have car payments, although we did have 2 cars reposessed a few years back. No, my debt is mostly medical bills that we either had no insurance for, or our insurance wouldn't cover it. I owe one hospital $4,000 for the birth of my toddler. Another hospital is filing a lawsuit for $500. Then there's one for over $10,000 when hubby had his appendix out and we had no insurance. Then there's some that have just added up, like co-pays and other fees I was unaware of and have now become $400-$500. All in all we're about $50,000 in debt, and 80% of that is medical.

Hi twoey68, Yes it is far too easy to fll into to debts when the banks and shops are giving credit cards left right and centre, and people thinks great lets go a spending and don't realize how much they have to pay back, don't forget its the interest that is crippling them and they have to work so hard to pay the cards and not getting any further because of the intersts they have to pay ontop. I don't have any credit cards just a debit card, I always take cash to do my shopping, I always say if you haven't got it don't buy it, I suppose I'm old fashion and maybe that is good for me. Tamara

For me, a lot of the problem is that it seems like it is going to take forever to get out of debt. Mostly because of the interest, my payments don't always seem like they are having too much of an effect.

My debt is what motivates me to work hard and do whatever I can to get out of debt. I went to college for a reason. I should be working in the field that I want to so that I could pay back my student loans. It just a little hard when they are so high and I have other bills that need to be paid.

It is slow and steady to get rid of credit card bills. That is what Im working on too. That interest can really get you! Im a SAHM but handle all the money and pay the bills, ect., We are doing alright although this last month was hard as we had inexpected bills and hubby doesnt make alot. If you want to do something I have found there is a way to do it.. if you want it bad enough.

I owe about $30 thousand in medical bills which my insurance and Medicard refused to pay when I moved from Puerto Rico to USA. This is a debt I cannot pay as I am on Social Security on a fixed income and there is not enough money at the end of the month for medical bills. I can't ignore the debt and I cannot pay it so I am hoping that I may be able to pay one bill at a time as I am attempting to do now.

I am not in debt. The key to staying out of debt is that when you are thinking of purchasing something, ask yourself this, "Do I really need this?." Many people buy to keep up with others all the time. That is a waste of money. Even buying a home can be something that is not a good idea. Depending on the situation, it might be smarter to live in an apartment. With insurance, taxes, trash, owning a house can be more expensive. If you are going to end up in foreclosure anyway, why bother?

Slowly, but surely, we're trying to get out of debt. Right now, I'm working on getting out medical bills paid off. I'm hoping to be able to do that once we get our income tax money. After that, we're going to just take it one step at a time. I know that by the end of this year, we'll have one of our cars paid off. I'm not sure what will fall into place next.

I think that most people are in debt somehow. If not for a mortgage, then it is something else, like a car loan or charge cards. It is pretty hard for a person to buy these kinds of things with cash so we have to borrow for them. but that is all part of life and if we want our own things than we have to do it the way we have to. I sure know I couldn't afford to buy a new car by paying cash for it. I don't have thousands of dollars available to me. But I don't have a lot of debt so I think I am luckier than others. I only have a visa card. No loans, no mortgage, or anything like that. So I am not too far in debt. Alrighty then, talk to you later my friend, Have a good mylotting day, Chris

Im sure that you are quite right Twoey,there are many people that are struggling to keep afloat,and are now drowning in debt,but there are many people who are able to help them Twoey,there are debt counsellors and debt advisors,and im sure if the while situation is looked at logically then the matter can be sorted out.If an income and expenditure sheet is drawn up,then the creditors have to take into account the amount that the family have left each month to survive on,and they can offere to repay those debts at a realistic level,most companies have little to gain by taking their clients to court,if the money isnt there to pay,the courts will only order a minimal repayment anyway.

I was watching a great segment on the Oprah.com show yesterday which had Suzi Orman...sort of the financial women's guru who gives advice about getting out of debt....the one problem is that she never addresses one issue...what about people on fixed incomes like me who get SSI benefits? What about we people who are on SSI or disability benefits? Our financial problems are a bit complicated and don't follow the norm of the issues that she often targets or discusses as we are on tight fixed incomes. Now I do try to earn a little extra income via writing articles for websites and off the books since if a person like me earns more than a certain amount our benefits are affected. It's a very frustrating situation to say the least. Recently I did come into extra money via money due my deceased mother but I was eligible for as personal representative. With some of that money I opted to buy vital necessities I would not have otherwise afforded and opted to pay off in full my one and only credit card (which had a max of only $750). Unfortunately, my grand plan to be credit debt free backfired, as now my cost of living has skyrocketed, so by the time I pay all my bills in full I'm actually in the minus. I receive $724.00 a month...my money goes for rent, electric (which is the bill that has skyrocketed), gas, phone, and yes of course my internet service which I view as a necessity as it does help me earn money through my writing. By the time I pay my bills I have nothing left. Thank goodness I get food stamps. But now since my cost of living expenses have gone up so drastically, I've now had to use my credit card just to pay my bills. So I guess the bottom line question is....how does a person on such low benefits survive? Believe me I did NOT want to use that credit card again...but what can I do?? I'm going nuts as it is trying to crank out articles to earn a tad more

This is why I have decided to stay away from credit cards ,and start concentrating on buying only what I can afford.

I find if the interest rates where not so high I could get out of debt faster. I also do not like the credit card people who keep upping the credit limit. I got a Gottchalks card. It is a store like Macys. Well they give me 1150 credit limit. I paid off the debt right a way and do not want to use it. I only applied because of the 15% of if you get a card. I have not activated the card yet.

When it comes to debt,slow and steady is the only way. You must stay at it and knock it down one step at a time. It is not going to go away on it's own.Keep at it and you will see a end in sight,that is the only way to go.You did not get in debt over night and you will not get out that way.

I know how hard it is to get rid of your debt. I am currently having quite a big credit card debts that I need to pay off. Somehow, the minimum monthly payments do not help to resolve the debt. For as long as I keep on using the cards, then the debts would still be there. So, I have taken a bold measure and started to cancel off all my credit cards and make arrangements with the bank to pay them back accordingly. Currently I have managed to close all my cards except for two more that I am expecting to close by the end of this month. Starting next month, I would be living without a credit card and would start paying and buying stuffs using cash as well as debit cards only. I am looking forward for next month to see how tough it is to manage my money while paying all the bills and the debts without accumulating more debts. I am anticipating that it's going to be tough but I am prepared to take this challenge and be out of that in a few years time. Wish me luck!

what keeps me going? i don't want to go to jail because of debt.. is there really a law that could send a person into jail because of debt? im not sure about it,but i'm working as hard as i could to pay off all my debts.. i learned that we should be responsible enough in handling our money so that we wont end up feeling lost and down.. that's what im feeling right now..