AARP Members Enjoy Exclusive Discounts on Travel, Dining and More. Join Today

Reply
Info Seeker
Posts: 1
Registered: ‎09-10-2017

Getting out of debt

Message 1 of 52 (4,681 Views)

Any suggestions on getting out of 10,000.00 credit card debt. Curently unemployed, picking up side jobs my current heath conditions will allow to survive. I have no retirement,savings, or family that can help So I guess my main question is , Do you have any suggestions on bringing in extra money to get out of debt. Really looking for suggestions from those who have hit bottom financially and found thier way through.  Much gratitude for any wisdom.

Treasured Social Butterfly
Posts: 4,124
Registered: ‎04-07-2015

Re: Getting out of debt

Message 2 of 52 (4,667 Views)

The best way to get out of debt, is, of course, not to get into debt. One does this by creating and sticking to a budget.

 

That's for when you get yourself out of this current mess.

 

Right this minute I suggest you pull out your credit cards and cut them to shreds. Also close your credit accounts. Disconnect your subscription TV, cancel all newspaper and magazine subscriptions. Ask for a refund on any unused club memberships. (some are prorated) And start living on a cash basis. This way, you quickly get real about your needs and your wants.

 

You gave us nothing to go on in terms of your abilities, so I cannot offer a response relative to work other than to say, yep, you'll need to start making more than you spend. Meanwhile, perhaps a credit counselor can help you work out reduced payments for and or consolidation of your debt. 

 

Sorry I can't point you to a magic solution. You'll get out of debt the opposite way you got into it: one good money decision at a time. Good luck!

 

The key to success is to keep growing in all areas of life - mental, emotional, spiritual, as well as physical. - Julius Erving
Treasured Social Butterfly
Posts: 4,124
Registered: ‎04-07-2015

Re: Getting out of debt

Message 3 of 52 (4,650 Views)

I didn't want to mention this, but it is the easiest manner to jettison credit card debt: bankruptcy.

 

It isn't free. There are court costs, plus attorney/counselor fees plus who knows what else, and you might not be forgiven 100%. Bankruptcy rightly ruins your credit standing for years to come. That may or may not be a concern. For you to decide.

 

Wishing you very good luck,

Epster

 

 

 

The key to success is to keep growing in all areas of life - mental, emotional, spiritual, as well as physical. - Julius Erving
Respected Social Butterfly
Posts: 35,603
Registered: ‎02-27-2008

Re: Getting out of debt

Message 4 of 52 (4,631 Views)

venusv630053 wrote:

Any suggestions on getting out of 10,000.00 credit card debt. Curently unemployed, picking up side jobs my current heath conditions will allow to survive. I have no retirement,savings, or family that can help So I guess my main question is , Do you have any suggestions on bringing in extra money to get out of debt. Really looking for suggestions from those who have hit bottom financially and found thier way through.  Much gratitude for any wisdom.


Call the card company, hopefully it is just one.  Explain the situation.  Ask to set up a payment plan.  If you cannot do that, then is any of the debt secured by merchandise you could return or sell.  If you have no assets it will do the card company no good to sue you.  You don't have much to worry about.  If you have no assets there is no much they can do to you.

 

 

Life's a Journey, not a Destination" Aerosmith
Recognized Social Butterfly
Posts: 836
Registered: ‎09-03-2011

Re: Getting out of debt

Message 5 of 52 (4,602 Views)

Try to negotiate terms, payments and interest rates with your card company. Most card companies are willing to arbitrate with you about your debt.

 

If you do manage to have your debt cancelled the IRS will consider the entire amount taxable. Its income to the federal government and you’re expected to pay taxes on it. You’ll receive a 1099 C Cancellation of Debt the following year the debt is canceled.

Super Social Butterfly
Posts: 898
Registered: ‎12-31-2016

Re: Getting out of debt

Message 6 of 52 (4,445 Views)

What are your current living arrangements like? Can you get a roommate? 

Info Seeker
Posts: 4
Registered: ‎05-31-2009

Re: Getting out of debt

[ Edited ]
Message 7 of 52 (3,431 Views)

It makes absolutely no sense whatsoever to tell someone who is buried in credit card debt that they should never have gone into debt in the first place; and it infuriates me that someone would say that. This is an extremely common problem among Americans and it could happen to any one of us. We recently crawled out from under credit card debt with the help of Rocket Loans.

Good luck to you!

Info Seeker
Posts: 2
Registered: ‎09-17-2016

Re: Getting out of debt

Message 8 of 52 (4,130 Views)

The best way to pay down credit card debt is to get a consolidation loan. You will have a set term ( such as 5 years) and when the term is up, your debt is gone. If you continue to pay just the minimum payments on the credit card it will take you decades.

Highlighted
Valued Social Butterfly
Posts: 6,729
Registered: ‎08-27-2012

Re: Getting out of debt

Message 9 of 52 (4,099 Views)

The best thing I did when I was in your situation, was to go to Consumer Credit Counseling Services.  They're a non-profit and their service is to help people get out of debt.  They consolidated all my credit card debt and some other debts (I don't remember specifically what ones), negotiated payments with my creditors, then collected money from me each month to pay the creditors the agreed upon amount.  They helped me work out a budget that covered  necessities -- utilities, rent, student loan payments, food, medical care, etc. -- and left me with very little left over, but it was worth it.  My employer agreed to allow direct deduction from my paycheck, so there was never any temptation to skip a payment or to go further into debt.  It was several years of living very close to the bone, but well worth it.  I came out debt free, with tools to keep me that way, and with a good credit report.     

Info Seeker
Posts: 3
Registered: ‎03-03-2014

Re: Getting out of debt

Message 10 of 52 (4,037 Views)

I'm a lawyer who does bankruptcy cases in Massachusetts.  Bankruptcy is one way to get out of the debt, of course, but for many people in debt, their sources of income are "exempt from execution", meaning that, even if they are liable/responsible on a debt, they can't be made to pay that judgment by a Judge because their income stream cannot be taken from them (it's exempt).  In my state, for example, wages up to a certain level are exempt, plus an additional exemption for rent payments, utility payments, etc.  Though individuals can differ (based on how much they pay for rent and the amount of their wages, for example), most people making under $50,000.00/yr. cannot be held in contempt by a Judge for failing to pay a judgment; they're called "judgment-proof".  Unless a bankruptcy is filed, the debt continues to exist and the amount of the judgment will rise, but if income remains low, it will never have to be paid.