Comments on: Tips On Debt Elimination?

By: Ronald L

Ronald L — Sat, 13 Feb 2010 15:20:28 +0000

There’s no easy way. You have to cut your expenses down to bare bottom nothing. Then pay off the loans as fast as possible starting with the smallest first. After the smaller ones are paid then put more money towards the next one and just keep going.
This method works for man, many people. There is a national radio show by a guy named “Dave Ramsey” that gives this advice. His callers call in about a year later and scream “We’re debt free!” Its hard work and you have to “Live like noone else so in the future you can live like noone else.”
Look up Dave Ramsey on the web and find some show clips and you’ll get the message. It may not be what you want to hear but its the truth.
if you’re driving a $20,000 car then sell it and get a $3000 car. Eat beans and rice and other low cost meals. Put aside a $300 emergency fund to prevent another financial crisis that can set you back. Write down every penny you spend. Spend only cash and don’t use debit or credit cards. The list goes on. If you do these things then you’ll be living like a king and queen within two years.
DO NOT call any debt negotiators. They are a rip off. You have to PAY them installments. More money, more debt. You can call and negotiate your own debt for free. I had an old debt from a credit card that was 4 years old. I negotiated a 40% payoff and they cleared the account. All honest debt advisors will tell you avoid the “reduce your debt for three easy payments” scams. You can do the same thing they do for free. They have no special powers with your creditors. Creditors will negotiate a lower settlement because when the debt is seriously dellinquent because they fear losing all of it. So YES, a debt negotiator can reduce your debt. But you can too without paying lump sums to someone else. One thing to remember is always get it in writing from your creditor before you make a negotiated payment and NEVER ever give them your personal bank information. They will drain it. Negotiate a settlement and get it in writing. They’ll even take it off your credit report in order to get the payment from you.

By: rayt721

rayt721 — Sat, 13 Feb 2010 15:17:41 +0000

One sure way is to cut all your credit cards into half, divide the total by 10 and start paying that amount. Stop applying for any new card until you have paid them all. As for other loans, you’ll have to down size. For example I use to drive a new BMW525i, now I drive a 10 years 728i. This way I am happier financially, Never adapt the “Keeping up with Jones” attitude.

By: talia_li

talia_li — Sat, 13 Feb 2010 14:27:16 +0000

The simple answer is to increase income and/or reduce expenses. You can’t do much about student loans but should be at a decent interest rate. It’s your credit cards that is the problem. Make a plan and stick to it. Get to the library and check out books by Dave Ramsey… he’s got a no nonsense approach to your situation and will be the first to admit that it won’t be easy but will be important. His motto is to live like noone else so that later you can live like noone else. Check out his TV show on FOX BUSINESS on weeknights or ask a friend to tape it for you.

By: Cherry Joe

Cherry Joe — Sat, 13 Feb 2010 13:58:31 +0000

I just turned 19 and I have about seven grand in consumer debt…well…I HAD about seven grand in consumer debt.
This is what I did..
Took a semester off.. and got a second job.
Learned to pay myself….when I got my pay cheque I automatically put two hundred dollars into a savings account.
Set aside money for my car, rent and insurance.
Put one hundred dollars cash into my wallet. This would be the only money I had for food, clothes, entertainment etc…until my next cheque.
The rest went to dept repayment. I paid off my high interest credit cards, and switched to a lower interest credit card. I went from paying 22% to 11% on interest.
Slowly but surely I’m getting out of the hole… =)

By: guyfromt

guyfromt — Sat, 13 Feb 2010 13:58:13 +0000

Yes because of the high interest rate incurred.
I have articles on Free Your Debts, Ways to avoid bankruptcy. Get advice from Debt consolidation or Debt settlement. Will it affect my Credit Score / FICO Score? More Information on http://avoid-bankruptcy-get-debt-consolidati.blogspot.com

By: Jennifer

Jennifer — Sat, 13 Feb 2010 13:13:16 +0000

Call the credit card company and ask them to lower your rates right now.

By: hawks169

hawks169 — Sat, 13 Feb 2010 12:50:28 +0000

Hi,
I used “Credit Solution” to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:http://nanoref.com/linksynerg/vgivHQ

By: agcgartn

agcgartn — Sat, 13 Feb 2010 12:29:34 +0000

Hi,
I use the following site http://good-financial-planning.info/
It is full of tips advice and resources you can use. It may save you some money rather than going to a financial advisor.
Thanks

By: gwizgosh

gwizgosh — Sat, 13 Feb 2010 12:08:26 +0000

I somewhat agree with Jeff, but not totally. Cut back where ever you can in your budget and put your extra money towards paying off the account with the highest interest first while making minimum payments on all of the others. After you get that one paid off, you put the money you were paying on card #1 (the minimum payment and the extra payment) towards card #2. That will pay card #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly.
To start :
Card #1 (highest interest): minimum payment+ extra payment
Card #2 (middle interest): minimum payment
Card #3(lowest interest): minimum payment
Card #1: paid off
Card #2: minimum payment from Card #1+ Minimum payment from Card #2 +extra payment
Card #3: minimum payment
Card #1: paid off
Card #2: paid off
Card #3:Mimimum payment from card #1+ minimum payment from Card #2+ minimum payment from Card #3+ extra payment.
That way, you will get them all paid off, on time, and pay the least interest.
Seriously consider getting a part time job, temporarily until you get out from under this debt. It will be worth it to get out from under faster.
As far as cutting costs, use coupons, buy your groceries at a grocery outlet or dented can store. Give up the cable and just use the regular TV, give up the bottled water, the Starbucks, the dinners out, etc. I know it isn’t fun but when my husband and I were both out of work at the same time for an extended period (over 1 year), we pared down to the bone, got by on 20% of our old income, and did NOT go into debt doing it. It wasn’t easy, it was darn hard sometimes but our situation, like yours, was temporary.

By: Thats_me

Thats_me — Sat, 13 Feb 2010 12:06:17 +0000

1-800- 9365348 Trinity debt negotiators are advertised on the christian talk show, I already called for more info. After you pay their program fee (in installments) they negotiate with your creditors for a lower settlement on your acct. Thing is you have to pay to play. You end up paying lesser in the long run; so that would be a way to go.