Getting out of debt

[venusv630053]

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.

[ChristophK635547]

Better be careful next time when planning your finances. I still have some debts to pay since my college times. But if you will work this out without having a job you can teach people your skills. What's your side jobs btw? I heard that Uber drivers can make up to 1000 per week if it's possible for you. But better be careful with that, because some passengers are total douchebags who report you for being drunk when you are not. So Uber blocks you, but you still need money, so you have to take loans at paydayloanstexas-tx.com and that's really uncool. 

[JanieS712835]

Just live within your means, if using credit card, pay it off immediately when getting the bill.  Do not spend unless you have the money to cover everything.  In other words, just live within your means.

[igorsmom2015]

Dave Ramsey has written many useful books on this subject.  Check them out at a book store or your library.

[AlisonM199724]

learn what items are luxury items rather than necessities: cigarettes, booze, soda, snacks, cable TV, unlimited data cell phone plans, wi fi, are all luxury items when you have debt. Most towns have a public FREE library where you can use computers/wi fi without spending a dime.

[jk55656468]

i m in the same vote your in. all we can do keep trying to do the best we can do.

[mendel4]

I paid off over a thousand dollar credit card bill over ten years just by putting my nose to the grindstone and making about the minimum payment each month. It's not something I would recommend but it can be done. I'm living proof. Now I try to keep my credit card debt under 100 dollars total or very close to. I haven't run into problems since.

[l658347c]

Preparer early or before retirement to get out of debt. Be creative and make something you could sell on line. Baby siting or tutoring children, (reading, math), Grocery shopping for the elderly, or the home bound. Drive a school bus or be a crossing guard. Tutoring a foreign language or teach how to play a musical instrument.

[c804104w]

Consumer Credit Counseling.  They work work with Credit companies to reduce interest. Sometimes 0%. Paid off over 40 Grand Credit cards

[honyb64]

When my 1st husband passed away, I hit the trifecta-his medicare supplemental had been cancelled-with his sudden and unexpected demise, I forgot to pay the bill, we had just gotten off the road (we drove truck together for over 30 years) and lost our company term life insurance and he had just started a part time job, so no benefits, and we started late in life with saving. I was only 57 and I had  found out that I would not be eligible for survivors Social Security until I was 60. The mortgage payment went up and I made $20 more than that. The final medical bills pretty much wiped out my 401K. I knew then that there was no way to go further with what I had. As much as it hurt, I filed a Chapter 7. I lost the house, the car, and pretty much all we had worked for. Did my credit rating take a hit? Of course it did. But when you are faced with the bare minimum to live on, and more bills that you can pay for, take advice from some of the other answers here. Cut up your credit card(s). Call all the people who you owe money to. I had what I called my honor debts-the funeral home and a few other bills-and I told them that because I was filing a chapter 7, technically, the debt would be erased. but I made a promise to pay each and everyone back. I did. Through hard work and being very cautious, I did it. I repaid over $12000. It took me 3 years, but I did do it. Good luck to you. Sometimes there are no easy answers.

[nyadrn]

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@honyb50 wrote:

>>> I had what I called my honor debts-the funeral home and a few other bills-and I told them that because I was filing a chapter 7, technically, the debt would be erased. but I made a promise to pay each and everyone back. I did. Through hard work and being very cautious, I did it. I repaid over $12000. It took me 3 years, but I did do it. Good luck to you. Sometimes there are no easy answers.

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@honyb64  That is wonderful!   Great job in getting everything paid off.  I hope all is now well!

[honyb64]

It is, thanks for that. Gave up driving and went back to school. I am now a bookkeeper and miracle of miracles, I met a man who lost his wife the same time I lost my husband. We think that our first spouses picked us out and made us meet. That is another story. But we are married now and building the 2nd half of our lives together. 

[mebunny097]

Contact Consumer Credit Counseling. They will interview you, shred your credit cards, arrive at a manageable lump sum you pay them monthly, and they negotiate with your creditors to accept the smaller amount, waive (or at least reduce) interest charges, etc. They charge about $30/month for their service. Worth it, I think. You also have the option to exclude any account/s that you don't want to be part of your plan.

[FREEMASON]

I contacted the respected creditors.  Banks are usually the issuers.  American Express is a separate entity. They all made settlement offers for amounts lot less than the total owed.  They are still making money in the form of paying lower income taxes.  I spoke about it earlier about mortgages.  The offer is a pay one time payment meaning that it must be paid in the full.  The remaining amount is accounted for as a bad debt expense which is in turn deducted from their gross income giving them their taxable income which means that are paying lower income taxes.

[mebunny097]

If you have a home, consider taking in one or two lodgers. Just be sure you're compatible and emphsize during the interview that rent MUST be paid on time, without fail. Check references, especially job security.
If you don't have a home, consider BEING a lodger in someone else's home. Utilities are usually included in the monthly rent and can save you quite a bit. Try to be flexible, clean up after yourself, watch volume on TV, etc. Pay rent ontime, without fail.

[retiredtraveler]

"....If you have a home, consider taking in one or two lodgers. Just be sure you're compatible and emphsize during the interview that rent MUST be paid on time, without fail. Check references, especially job security....".

One may 'consider it', but it's not that simple. You need to check local ordinances and codes. You need to be sure you are covered if your tenant steals from you, really trashes the places, or causes a fire. You need a clear, concise, legal contract.

   You can 'emphasize' paying rent on time all you want, but a common scam these days is for someone to come in, pay the security deposit, pay rent a couple of months, then stop. You then have to go through legal means to get them out through a legal process. That's your time and money, legal expenses for a lawyer, and those tenants often staying there, for 6 months, on your dime.    

[nyadrn]

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@retiredtraveler wrote:

"....If you have a home, consider taking in one or two lodgers. Just be sure you're compatible and emphsize during the interview that rent MUST be paid on time, without fail.

 @retiredtraveler

Pacific Heights. A great movie about lodgers you cannot get rid of!

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[mebunny097]

Thanks again. I'm sorry I ever broached an opinion. None of those negative possibilities have occurred in my life, but, of course, they could happen to me or to anyone else. I stand corrected. I will be very alert in future.
Yes, I do remember this movie. It was horrifying.

[mebunny097]

Thx so much for your wisdom. I've rented to lodgers for 17 years and only had one failure, but he moved as soon as I told him. I guess I've been lucky, or I've been thorough in checking references, or I'm an astute judge of character, who knows?

[FREEMASON]

If you do rent out rooms then be sure to consult with the IRS.  Unless Im mistaken, while you may have to declare the rental of rooms, you might be able to deduct household expenses.  For further information please look at the following:

https://www.irs.gov/publications/p527

[LeoAscending]

I've been through similar circumstances.  It's an embarrassing situation for anyone.  I was always cautious about credit card debt, but when things get really bad, it's easy to slip into paying for essentials on the card thinking "things will get better."

Credit counseling can be very helpful.  We actually end up imprisoned to our debt, emotionally and the stress can even further damage our health.  A non-profit credit counselor can be amazing.  They don't patronize, but help you take things from where you are today.  They can not help with secured loans like car or mortgage, or student loans though.  

Bankruptcy can clear consumer loans and credit cards, but again not the secured or student loans.  It isn't cheap either.

This is painful and embarrassing, but you are not alone.  It's actually expensive to find yourself at the bottom.  It's easier to make mistakes that were tough, but not as daunting when you have a descent income.  Now a small mistake is amplified by preditorial bank service fees that can slam you like dominoes.   We have a society that pushes too many people to live beyond their means.  Everyone wants the American dream, but things will never honestly make us happy.  Take a deep breath, get out of debt and rethink what is really important.  You can do this!

[truthseaker]

As I read the comments, the question is what can this person do to earn more income.   But, this person didn't say what they can do and indicated they are limited.   Therefore, hard to answer the question.   

[Epster]

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@truthseaker wrote:

As I read the comments, the question is what can this person do to earn more income.   But, this person didn't say what they can do and indicated they are limited.   Therefore, hard to answer the question.   

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Right, and this is why the answers are what they are: people's opinons and experiences with debt. 🙂

[FREEMASON]

Let me preface my comment saying that I never professed to be a Mr Know It All.  My statements are based solely upon my own experience declaring bankruptcy.  I am not offended by anyone's coments.

Regarding my comment on work; if you are, like myself, on Social Security Disability then there are limitations to how much money you can make in a year but not on the type of work that you may do.  You must contact The Social Security Administration for clarification.

Second.  I had an educational loan for $15,000 financed by the U. S. Department of Education which was excused on the basis of the disability information that they had received from the Social Security Administration.  If I suddenly return to work, the income of which is taxed, then the loan will be activated not by me but by the government meaning that I have to pay it as I  am working.  For clarification please see The Social Security Administration & the U.S. Department of Education.

[nyadrn]

You got some great suggestions.  Are you feeling more confident about taking action?

[FREEMASON]

One thing that I strongly recommend is to sell, donate to Goodwill &/or give to charity as much clutter that you can keeping only those items that you actually use &/or need.  When my wife died I went through our closet, 75% of which was hers.   More than half of her dresses still had the price tags attached.  She had purchased large candles & placed them on all the tables in the living & dining rooms.  None of them were ever lit.  I have given a LOT of items to the veterans She had purchased about 5 different coloured dining room table cloths.  How many table cloths do you need for one dining room table?  We had three different sets of kitchen silverware for only two mouths.  I gave 2 sets to my Masonic lodge.  The more clutter that you get rid of the better you will feel.

[wischeese1]

i do that a lot the last 2 year now get rid of it the clutter . also clothes have 10 days worth of cloths and that it if you haven't have a yard sell or give to good will. Clutter no good.
If you haven't **bleep** that shirt of pants in a year get rid of it.
Mitzi havlik

[FREEMASON]

Yes I do! The vast amount of debt was accumulated while my late wife was dying from Ovarian Cance Type 3B.  Initial disagnosis & operation was in 2007 resulting in a hysterectomy together with a complete debulking.  From then until her demise 10 September 2010 she was unable to work since she had to undergo chemothereapy 3 weeks of every month, treatment that totally incapacited her.  I couldnt work as I did what I thought husbands are supposed to do by remaning home to care for her.  It is interesting to note that chemo is poison. So poison is being used to kill a disease that is already killing the patient.  It is also interesting to not that when you include your care on a job application employers will say that it is not a job & then dismiss your application for work.  Should you be in your fifties or older no one wants you or if they do then they offer a salary so ridiculous that it doesnt begin to pay the rent & put food on the table. My wife died at age 50.  At 64 I am a cancer survivor having survived thyroid cancer (a pain in the neck) & prostate cancer (a pain in the tuchus)!  My mother died in 1981 at age 65 from systemic cancer & my father from esophageal at age 95 in 2007.  Given my fathers age everyone tells me that I have good genes & should live a long life.  The only thing that I am confused about is whether they are refering to Levis, Lees, Jordache or some other design jeans.

[sl61013229]

I can speak from personal experience about the bankruptcy approach. As stated, it is not easy, but when it is used as a learning experience the benefits are endless. Over 7 years ago, my wife and I filed for chapter 13 and began making the payments without fail. Yes, we went to the required classes and managed for at least four years with no credit usage.

We started rebuilding credit with a credit card from our bank. First I applied and received one. Then so did my wife. Yes, this was while the bankruptcy was still on record and not yet dismissed. We applied and received multiple credit cards since then. It was truly interesting to apply for an Amazon (Chase) card with only a couple of months left before the bankruptcy was removed and it was declined.

The moment that the bankruptcy was removed, my Transunion score increased 39 points and equifax went up 31. Now that the bankruptcy is no longer on record, both credit scores are excellent. My wife's credit scores increased even more, and she is a homemaker. Yes, this was because the credit cards received have been properly managed and wisely used.

If you are committed to it, bankruptcy can work for you. In the class, we heard of people who defaulted on bankruptcy because of spending the payment on televisions and other wants. It was that kind of thinking that put them in the bankruptcy position in the first place.

Whatever you decide to do, keep a close eye on your credit scores. TransUnion and Equifax scores are free on Credit Karma. To stay on track, follow the excellent budgeting advice that has already been given. Some people take a simple "envelope" approach where cash goes in an envelope dedicated to a certain expense category and once it is gone, there is no money left for that expenditure until next month. Others use MS Excel or Intuit Quicken (yes, that is what my wife uses for ours). As I have heard many times, "there are only two legal ways to overcome debt - make more or spend less." An excellent way to spend less, in addition to a strict budget, is to use coupons whenever possible and buy store brands when coupons are not available.

With proper planning and a commitment to the plan, you can get out of debt.

[JudyBauchspiess]

If you are in debt, resolve within yourself that you are going to find out why.  For instance, are you a hoarding personality?  They're out there. Are you medicating by making purchases? It happens.  If you are in debt because of poor decisions, you MUST decide and resolve that you will not buy that thing unless you actually have uncomitted cash to make the purchase.  

Probably the best way to get out of debt that I know of, besides not getting into debt in the first place, is through a program called Financial Peace University.  There are classes being held all over, so log into Dave Ramsey, or Financial Peace, and you should find a link taking you to where groups are having the thirteen week classes. You must pay the cost of attending, often near $90, but it is very worth it.  You learn so very much and what you learn can be passed on to younger members of your family.  If you stick diligently to the principles of the program, you will find yourself in a much better situation even after just a month.  

If your debt is medical, you may want to speak to the places where you owe money to see if you can work with them to pay your bill over time and possibly get a reduction of your bill.  Owing money is such a struggle! Owing taxes is very scary. I found out that there is a program called "currently not collectible" for a person's very overdue tax base.  Because of my husband's job, we must pay into the IRS our quarterly taxes. So we pay a bit more than we should so that they can claim what would have been the refund. 

Like I said, resolve with yourself that you are not going to keep that monkey on your back!  There are things you can do. Working with a credit advocate is really only necessary if you are in so deep that you can barely subsist.  Otherwise, you spend a good chunk of money for those services and may not learn anything.  So plan to learn techniques and tips for keeping yourself solvent and win the war over debt. Best of luck!