Your Questions About How Do I Get Out Of Debt Quick

Linda asks…

how can we get out of debt?

my fiance has a freak out every month i cant deal with it anymore. i need advice how to get out of debt quick. should i got two more jobs i dont know what to do?
yeah i should of mention. its not all credit card like we only have two. its our wedding stuff and my fiances schooling. he is getting his masters in oct. he is freaking about that already.

richmama answers:

I’d have to know more details on what kind of debt you have. If it’s a bunch of credit cards, You need to make a lot more than the minimum payment if you want to see any kind of result. Don’t use credit cards unless you have to- loans are much better. You sound like you have a problem with handling money. I’m not being mean, just stating a fact. My fiance is the SAME way. So we decided that he would give his paychecks to me, and I would pay all the bills. This way, I could budget, and I’ve gotten us out of debt now, and we’re saving for our wedding. So, if that would be okay with you and your fiance, have him handle the money and clean things up. I know it was hard for my fiance, but he wasted so much money in overdraft fees it was ridiculous! He’s much happier now knowing that I’m happy, and things are paid. I still give my fiance a little “allowance” every now and then so he doesn’t feel completely deprived. Lol

…and about the idiot that said to leave your fiance-don’t. That is just dumb. Me and my fiance are total opposites, but that’s okay because we compensate for each other’s weaknesses. Your weakness his handling money. His, is managing it. You can make it work. Use these differences to your advantage, and you’ll make a great TEAM.

Daniel asks…

how can i get out of debt?

i have a bad credit score and low on cash. how do i get better rates on mortgages and credit cards to get out of debt quicker?

richmama answers:

Pull your credit reports ( if you are in the US), get the report that contains items from all three credit bureaus, clean up the derogatory items by paying them off or disputing erroneously reported items (if the debt is valid, it cannot be removed for seven years).

There’s no magic bullet. If you have a bad credit score, it’s because you haven’t managed your accounts responsibly. Pay your obligations, then get a secured credit card from a credit union (go in, talk to someone about it and they will explain…this is not a prepaid debit card, it is a credit card guaranteed, not funded by, a savings account you open), use the card responsibly and in a couple of years, your credit score will start to recover to acceptable levels.

It takes time, diligence and responsibility to build a good credit score. It takes only a few months to ruin it.

Charles asks…

How do you feel about the debt settlement companys??

Hello to everyone,
I was wondering your opinion on the debt settlement companys.. The company we are considering going with so that we dont have to file bankrupt has an EXCELLANT report from the better business bureau….. I have read through all the sites and everything and this seems like a good idea so that you can “settle” your debts and get out of debt quicker…. we are in credit counseling now but Its taking forever and we cant afford it anymore… But we can afford the payment that the debt settlement is asking for… Just wanted to see some of your opinions.. Thanks

richmama answers:

I’m a bill collector for 10 years now. I’ve had 1000’s of people who have chosen to go with settlement companies. Some are legit, and some I’ve heard kept the money people have accumulated and not settled any debt, and also refused to send the money back to the customer. Like anything else, buyer beware! Do a full backround check with BBB with whomever you choose. Read their terms carefully, as well. I don’t know who or what type of bill you owe, however, I suggest settling with your creditors yourself. Settlement companies can’ t protect you from lawsuits, accruing interest or other charges. Basically they don’t care about that, it’s just a matter of getting around to your settlement when you have enough $ and if not there’s nothing they can really do for you in terms of protecting you legally. Their ‘power of attorney’ does not do much to help you except to direct all collection calls to them, not you. If a creditor is going to sue, they’ll sue irregardless of debt settlement companies involvement. If you live in a ‘wage garnishment’ state also be aware. Your state laws in regard to owed debt means the difference between lawsuits and liens, or protection from them.

Ruth asks…

transferring my debt to my parents?

i took a loan out for my parents in 2003 i‘m in a debt management plan and owe £15000 – i pay what i can a month – my parents owe £5000 of this debt and pay me £60 a month – i want to get out of debt quicker and would prefer to transfer my parents debt which is in my name to them so that my debt will be less and take less time to clear – i‘m pregnant with my first child and want to get on the property ladder within the next 5 years – how do i go about getting their debt transferred to them as it’s in my name – i found out by accident that they have over £8000 in their bank account and they don’t know i know this but it’s annoyed me a bit – the thing is i love them both unconditionally and don’t want to upset them but this is upsetting me

richmama answers:

There are some rather odd answers to this question indicating that some people have not much idea about how the loan industry works

It is indeed easy to transfer your loan to your parents – BUT it is going to need their agreement.

Unfortunately (even after your parent’s share of the debt) being pregnant, and owing £10,000 is not going to help you get on the property ladder – although I agree that parsing off their five grand will help.

My suggestion is to sit down and be totally honest with yourself. Take your income and that of your partner, work out what you will need to service your debts. Also take into account the cost of your baby and then work out how to get yourself the house or apartment that you seem to want.

I really hope this works out for you but you need to be realistic about what you can do and how soon. Goals are always better if they are realistic

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