How to escape from debt?

Many years ago, when I was married to my first husband, he had accumulated a few debts. They didn't amount to a huge sum, but, he was paying interest on all of them. What he did, was get one big loan, to pay the whole lot off at once. That way, he was only left with the one debt, and one lot of interest. It worked, and the one debt left was paid off within months. Good Luck.

The only thing I could suggest you do is get in contact with a Debt Consolidator. All you have to do is pay the company one amount each month and they could have you out of debt within two years tops. The name of the company that I'm currently working with is called Ligthouse and there web site is www.lighthouse.com and let them know that Sharon sent you.

It sounds like you're pretty stuck. I have a couple of thoughts - I've read the other comments and your responses, so I understand that you're limited in what you can do, with two kids. Once your wife gets a job, or you get caught up with your mortgage, you'll have more space, I should think. 1. While your wife can't take a lower paying job, because it's kind of pointless with daycare costs, is there any way she can babysit another child as well as take care of your own? 2. I've made bits of income online, which has sometimes been the only difference between us paying the bills and not paying the bills. Besides mylot, I've done reviews on reviewstream and some writing (I found writing jobs on freelancewriting.com and craigslist). If you or your wife can do this, a bit each day, it can bring in maybe enough to buy a few groceries or pay one bill. For us it pays for our internet access. 3. Is there an Angel Food Ministeries (I think that is what they are called) around you? They have very affordable food packages for anyone, not just low income, but anyone who signs up. 4. I wouldn't stop paying cards. The late payment fees,etc, will just make those things bigger and the companies will be calling incessantly. I hope things turn around for you soon. We are also working our way out of debt, and it's an uphill climb.

Well it sounds like you are in over your head for sure and I know how that can be. You may have to consider a debt consolidation company. First of all they can call and have the interest reduced on your cards, then you need to get rid of all but one and never let that one go over 50% of it's value then you have to contact old debtors and see if you can get penalties and interest knocked off or a settlement amount. Then you have to pull your credit report and verify that you are responsible for all the charges. You can refinance your house with all the payments in mind because that's what a debt consolidation company will do for you. I wish you luck and I hope something works out for you.

I recommend you start listening to the Dave Ramsey Show. You can download episodes via Itunes or go to http://www.daveramsey.com and go to the show archives. Dave is one of the only financial people I have been exposed to where I agree with 90% of what he teaches. For your reference, I was in a similar situation in the beginning of 2006, and in the past 14 months have paid off over $22,000 in debt. I make less than $45,000 currently. I had been laid off several times and got to the point where I was also having to do cash advances, etc. each month because I just didn't have any money. The best summary and direction I can give is in an article I wrote a while ago, titled "How to cope with being flat broke." http://www.helium.com/tm/169868 If you really "get" it, it will change your life. It has changed mine. Draven the Respectful Atheist http://dravenwriter.blogspot.com

hmmmmmm maybe I'm not the one to ask down 17K on cards myself, still floating though Strange choice to buy a house with all that going on financially I think. Can you go to a bank and get a consolidation loan, against the house maybe? Make sure you have food money, thats first. Some tennants maybe? Add up what you need. Add up what you have. Then pay off the fee incurring things and high interest things first. If I saw the whole picture and what sorts of debt, what sorts of bills , maybe I would have more to say. Sounds grim, don't let it et you down, its only money. Maybe keep telling yourself, its only money.

I am in a similar situation hun and the first thing I would say is do not try to get yet more debt trying to consolidate, it costs a lot more in the long term. Contact your credits and tell them you are in difficulties and ask them to accept a lower repayment rate for the time being and get the highest credit card bill with the biggest interest rate paid off first. Form what I have been told, credit card companies are obliged to accept payments from you, so long as you keep them advised of the situation and make the minimum payments possible in order to clear the biggest one first. Once the first one is paid off, then you can concentrate of clearing the other bills. Good luck hun

my parent has those big debts before and even right now..and still paying those debts and interest..maybe we have to settle all our accounts first and then lets be contented on what we have and discipline..

We live in a greedy little world. To earn as much as they can possibly,then turn around and spend it foolishly. We created us a credit card mess,we spend the money that we don't possess. Our religion is to go and blow it all. All we ever want is more,a lot more then we had before. I have no credit card,no debt and money on the bank. I didn't need the song of Shania Twain Ka Ching! for it,but I really agree with it. My neighbour have a new car,I need a new car too isn't my lifestyle. Maybe some people bought a lot more then me ,but I'm free of debt and most important I'm happy.

If you have a hard time with bills and cant balance your check book than you need to get rid of the checking account and go straight to getting money orders. Its way too tempting to write that check and hope you can get the deposit in be4 it bounces on payday than it is to just stick with using money orders, that way you remove that temptation. Also I dont know who you have your loan thru and it could be because you hadnt been paying on it long enuff but most companies will allow you to differ a couple payments and you are only required to pay the escrow and interest. They really dont want to take back your home and are usualy willing to work with you any way they can. A bill consolidation loan is only good if you can significantly lower your current interest rate on your home. Most people think because their home rates are lower than credit card its better but you are paying on it longer so it could cost you more (provided you are paying more than the minimum on your cards). If you are still having a ruff go of it and cant figure out what to do call someone. There are non profit and free debt consolidation companies that will deal directly with your creditors and work with you to come up with a plan for repaying your bills.

You can never star right as long as your in deep trouble with your finances, much more if your only way of paying is by loaning money from credit companies. One thing bad about loaning money from credit companies is that debtors are "in" for big interest rates. As interest accumulates, you'll end up paying only the interest and not the principal amount. One thing that should be in the mind of any debtor is that it is inappropriate to pay your outstanding credit bills by applying for another loan. If this routine goes on and on, you'll end up paying high interest plus the principal amount. One thinf that we forgot to this is that we have people whom we can ask for help whenever, wherever -- families and friends. Good thing about borriwng with faliy members, especially parents, is that they can loan you the money without the interest. With a good and clear intention of getting our of debt in mind, they will surely lend you the amount that you need to pay-off your bills. Just be sure to pay them off as soon as you have the money or on the date that you agree to pay. One thing though, having trouble with debt and credit should not be a lifestyle to anyone. A quick way of checking this is by closely examining your monthly finances. If your total monthly bills, plus other payables is more that what you are earning, you're in deep trouble. It's high time that you change your lifestyle. The ideal financial status should be: your earnings (assets) should be more than your payables (liabilities). Please feel free to contact me at d_ben2t@yahoo.com.

I hope the following will help alleviate your debt problem if you choose to any of it. You must pay off the balance on the credit card with the highest interest rate first. Then get rid of the credit card and next month do the same with the card that has the next highest interest rates. Continue until you reached the credit card with the most favorable terms such as low interest rates and keep that one only. You must evaluate your living situation. Your housing cost should be no more than 33% of your household income including mortgage payments. You must avoid borrowing money to get out of debt especially consolidation loans. Many people think this is the way of helping them get out of debt. However consolidation loans are simply a means of combing debt. You could end up losing everything because you tied it all up in one loan. If you must borrow, see if a friend or a family member can lend you money, since the interest rates should be low or non existent. You should contact your creditors and try to work out repayment plans. Many creditors are willing to work with you in a manner that will help them get their money without having to resort to debt collectors. By the way, please create a realistic monthly budget for your expenses, you must learn to use cash and have one credit card for emergencies only and should not accept increase in your credit limit. Also you must cutdown on your discretionary expenses such as dining out and other unnecessary expenses. Goodluck

dear gleznov, banks can give you relif in extra charged intrest,even they can offer u installments,this scheam is called as "one time settalement scheam".if u take debt from one single agency and pay the debt of other members then u will have to face one single agency.it is easy to face single person rather than ten.always go directly to debt agencies.take them in confidence assure them and something will come out of this.thanks.alhad kashikar

I know you say you dont have much extra but I think if you want to keep away from consolidation you should try snowballing, by paying the aboslute minimum off of every debt except one, towards which you throw all the extra, then when one debt after another is eliminated your financial situation will quickly improve.

I would try and pay off one credit bill at a time. Use any extra to make a payment toward one bill and try to eliminate it. Then use that money to pay on another after you get the first paid off. Taking out more credit to bail yourself out can backfire. Especially if it is another credit card.

all you need is to manage your money.if you have money.you need to budget it.and lessen your expenses.thats is very big help for you

First thing, do not consolidate the credit cards, as a bigger principle will bring about a bigger interest amount. Maybe you can speak to the banks, to change the repayment dates, this way, you won't keep paying the late fees. But if it cant be done, speak to your company for a special arrangement on pay. I dont have much info on your loans and repayments, so I cant advise you more. Hope it gets over soon.

Try Lynnette Khalfani www.themoneycoach.net; she is real good; has good ideas and her books should be a help. I wish you the best.

we are in the same sinking boat as you....and i cant bail fast enough...we moved went from two incomes to one....was awarded custody of my step-daughter so that i couldnt go to work...so we just keep falling further behind....we choose the smallest bill and are concentrating on paying that one off...then we will go to the next...it might take years but eventually we will get there

Gleznov- I totally understand where you are coming from! I won't bore you with my dilemma, but I too understand the financial crunch that you're facing: Having just enough money to get by and wanting to get yourself back on solid financial ground, but it seems like you can't because your credit has been trashed by unforeseen circumstances. The first thing I suggest is that you take a deep breath, have a seat, and truly look at your financial situation. Write it down on paper so that you can look at the solid numbers if you haven't already. Get a look at the big picture. The second is to contact a credit counselling service who can honestly evaluate your situation with you and truly help you be in a better place. You should only look into non-profit agencies, such as www.nfcc.org, but there are many agencies out there so choose one that is right for you. You may be eligible for a financial hardship forberance on your personal secured loan, you should contact your lending agency about that and see if they can do anything for you. Contact your credit card companies and see if they can do anything for you. My credit card company went a long way to provide help; my take is that they are a business and they want to get paid just as much as we want our balances to be cleared. They may be able to help you out somehow. Talk to a professional, see what they say. The most difficult thing is to notice that you are in a bad situation and to seek help for it. You've already cleared that hurdle! Good luck my friend. It seems like you've got a good head on your shoulders and your priorities are straight, so I'm sure you'll come out of this better than you went in. -Matt