Your Questions About How Do I Get Out Of Debt Quickly

Mandy asks…

What are some suggestions on getting out of debt quickly??

I am 21 and have accumulated some debt…not including my school loans it’s about 5,000. I have had some issues with jobs in the last 6 months, but have now resolved that issue and have even taken on a second job making my grand total of hours to about 70. What else can I do??
Also, what are some tips on how to negotiate with collectors? I have one bill in collections, and need to either settle or get a payment plan started.

richmama answers:

You can start by getting all your financial records in order and see exactly what you have to work with. If you are working 70 hours each week then you should be able to put at least 20% of what you make toward bills. Call the company that you owe the most to and work out a plan and negotiate a reduction in interest rates. They want to get their money and will work with you.

Paul asks…

I’m 21,000.00 in debt. How can I get out of debt quickly.?

I have a car that was repo’d years ago that was 17,000.00 and other past dues bills that I‘m working on slowly but surely, I was wondering did anyone have any advice for me so far as getting my credit on track.
The date open for my car was 9/1/2000 on my credit report. Next month will be seven years can I dispute it to get it off my credit report or do I have to wait for the last active date, if so how do I find out the last active date .

richmama answers:

Ok. If you are not working two jobs. Start as soon as possible. The problem you have now is that you do not have enough income to pay off your debts.

Also, the debtor can resist having this wiped off your record if you had agreed to pay an existing balance. If no such agreement exists, then yes.

Donald asks…

how do i get out of debt quickly and legitimately?

richmama answers:

Getting out of debt takes time and committment. It can be done legitimately by paying off your debt. It just takes time. Ask yourself, do I need it or do I want it when spending and then if you want it, don’t buy it. Don’t put too much pressure on yourself and just operate in cash only now. There is a light at the end of the tunnel.

Maria asks…

Just married, & in debt. How to wipe out debt?

I have been married a month now. We bought our 1st home (a 2 bd/1ba fixer-upper which btw turned out adorable) about 2 months before we got married. We remodeled a little, but put about $2500 on our visa. Throw in a few wedding expenses, a honeymoon, furniture, & previous debt which comes to a grand total of about $13,000+/-. IS this a lot of debt for our age (24 & 25)?? Between the both of us, we make about $52K a year. I have great credit, but does anyone have a good method of paying down our debt quickly?? Never made a late payment in my life! We are not strapped for cash & don’t live payday to payday… Just want to get out of debt so that we can buy my hubby a new truck.
I have 4 credit cards that I owe on: 1st = $6000, 2nd = $4100, 3rd = $2300 (furniture cad with 0% interest until Feb ’08), 4th = $600. We also have 2 savings accounts that total about $1,500. Don’t know if I should apply that to one of my cards or keep it for a nest egg.

richmama answers:

OK, first thing, stop using your cards.

Second thing, Save up a few hundred bucks in case you hit an emergency – washing machine packs in, that sort of thing – so you don’t have to put anything on the cards.

Third – make a budget and work out how much you can put to your debts every month. Call that figure X.

Fourth – make a list of your debts with the account with the highest/worst interest rate on top and going down.

Pay minimums on all the debts except the one at the top, at which you throw all the rest of X. Keep doing that until the first card is paid off.

Then move onto the second card but DO NOT DROP THE AMOUNT OF X. Pay minimums to all the card except the new top one and so on and so.

This is called “the snowball method” because as the cards/debts get paid off, the amount available to the next card down gets bigger and bigger. It ensures you pay the debts methodically and in a manner which ensures you pay as little interest as possible.

When all the debts are paid off, start putting X in a savings account you can use to pay for the new truck. Once you do that, not only do you end up with either the full amount or a decent down payment but you also get used to budgeting for a substantial payment every month, except now X is the truck payment.

Powered by Yahoo! Answers

Be Sociable, Share!

Speak Your Mind