How can I get out of 20K of debt ?
395711
First, you have to realize and accept the fact that there is and won't be any easy way out of your debt without certain consequences.\n\nHere are a few suggestions from someone who's been and done that:\n\n1. Go to a debt consolidation company, they will make negotiations on your behalf with your creditors for a lower monthly payment. Basically, you will make a agreed upon monthly payment to this company and they will in turn disburse the money to each of the creditor each month. You can call them and tell them your situation as far as the amount of debt and your income. I can suggest one I;ve used in the past, Debt Options in FL, 800-523-0102. It will have a negative impact on your credit score, but at least you will be able to pay down the debt in a fairly short time, and you will only have to repay a small percentage of the actual debt, maybe around 10-30%.\n\n2. File bankruptcy, this is the fastest and least painful way, you can file for Chapter 7 and just walk away from all of the debt. Even though the laws have changed, you can still file for a Chpater 7 or 13 bankruptcy depending on your particular situation, you would have to speak with a bankruptcy lawyer. The fees are probably around $1000 to $2500.\n\nIf you have been in debt for 20 years, then you really need to review your situation seriously and make a decision if you truly want to regain control of your life and finances. It sound that at your current pace, you will still be in debt another 20 years from now! \n\nAs painful as my suggestions may sound, it at least provides a way out for you and then you can start all over with a clean slate, no debts! Trust mem there are millions of people filing bankruptcies every year, so it is not a life ending move, but rather a way to give you a new start.\n\nIt's your life, you can decide as you wish...good luck!
1002408
Have a list of your assets and debt, and bring that with you to speak to the local banks.  Keep trying at banks or credit unions until you find someone you can borrow from.\nBanks are mostly interested to know you can pay off the money you borrow.  Have documentation of bills you've paid off.
186284
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.
303243
Look at your past expenses.  Ideally you have records from the past few months.  You will probably have some money you spent that you can not account for.\n\nFigure out what expenses are required and what are discretionary.  If you are spending too much try to limit your discretionary spending.  You may also have to determine what of your required expenses are actually necessary.\n\nA budget is like a diet, you need to build some fun in or it will not work.  You have to give yourself some money to spend beyond the minimum.  While having a limit may seem like a pain at first, it can also make you be creative with how can I enjoy this $20 I can spend on fun to have the most fun.
427882
Pay off any debts you have.  Start investing in a 401k or mutual fund.  Buy a house as soon as you can-- still the best way to build capital long term.
213017
Stop eating out, or whatever you spend the most non-essential money on. Then take all the money that you would have spent, and put it toward fighting your debt.\n\nBe consistent. It should only take you 18 months, which is Small in comparison of 30 years. Think about it.
78054
Pay your debts on time.  Obtain a secured credit card (deposit $250 bucks into a Citibank account and get a credit card with a $250 limit that grows as you pay off your bill over time and maintain a good credit rating).  Obtain a cell phone or any other solution that reports to a credit bureau (not too many just five or so).  Always, always, always pay your bills on time.  \n\nIt really comes down to living within your means, not strapping yourself with too much debt again.  Buy a Hyundai not an Escalade if you make $25,000 per year.  Save your money at least 10% of your earnings per month.  If you want to buy a home, plan to buy it, save every penny you can speak to a mortgage broker like me to understand what you may be able to afford once your fico is in check again.  You may be able to afford a home now and not know it.\n\nYou can send me an email if you have questions simply click on my screen name for my address if needed.
478036
Living your current life has, presumably, put you into debt. I don't think anyone can promise you a method to get you out of debt without your making changes.\n\nThings that you can do include:\n- spending less, even if you still go out\n- making more than minimum payments on credit cards; pay more than you've charged for the month plus the interest due\n- negotiate for lower interest rates on credit cards\n- don't charge things on credit cards\n- start saving money so that you have resources should the unexpected occur\n\nYour public library should have books that help you gain control of your finances. In addition, I'm sure there are several online sites.\n\nDon't expect things to be easy, or a quick fix. But with a little planning, you can start gaining your financial independence.
685061
Here are some websites that discuss how to get out of debt. Watch out for the "non-profit" credit counseling agencies that are frequently scams. Good luck!
170265
so shy,\nI really feel bad for people in your situation.  But fear not, there are a few things you can do.\n1.  Being that you asked this on a religious board, I'm assuming you belong to a church.  The first thing you need to do is talk to your church leader about this.  They can take up a collection for you to get you out of some immediate debt.  \n2.  You need to really decide what is luxury and need and cut out the luxury for now.  For example, if you subscribe to cable, cancel it.  Unless you need the internet for work, cancel it.  There's an extra $50 a month right there.  \n3.  You can see if you qualify for welfare.  Your local welfare office can help you with this.\n\nI hope this helps and God bless you with your finances.
338863
Well, the debt isn't going away, but there are things you can do to lower your monthy payment (which I assume is your immediate concern) -- consider private loan consolidation.\n\nwww.finaid.org (a great resource) offers a list of private loan consolidators, as well as some sound advice. Here is their list: http://www.finaid.org/loans/privateconsolidation.phtml.  {Note: Sallie Mae recently came out with w private loan consolidation product}\n\nNot to push a certain company, BUT, of the companies listed above, you might look first at Sallie Mae, Key Bank, Wells Fargo, and NelNet, as they are established education loan lenders. Some lenders on www.finaid.org's list may no longer offer private consolidation; others may require at least some of your loans to have been borrowed through them to begin with. Key Bank's program does not require that you have loans with them in order to consolidate with them now.\n\nNote: By consolidating your private loans, you should expect to see a slight increase in your interest rate (and obviously, your overall accrued interest); it is up to you to decide whether this increase is outweighed by the benefit of a lower monthly payment (if it helps you pay your other bills and preserves a good credit rating, the answer may be a resounding "yes"). Take advantage of any benefits that the company has to offer: consider having your payments automatically deducted from your checking/savings account each month -- it can often save you .25% off your interest rate.
1146659
Living with debt or bad credit can be very stressful, but help is closer than you realize. Improving your credit rating requires that you take positive action and change your attitude toward money. \n \n   \n  Steps:  \n1.   Request a copy of your credit report from a credit bureau. If there is an error, write to the bureau and ask it to fix the mistake. It might also help to contact the creditor who reported the error. Some creditors will contact the bureau on your behalf.  \n  \n2.   If the bad marks on your credit report result from outstanding debts, repay them as quickly as possible. Pay off those with the highest interest rates first.  \n  \n3.   If your debts are overwhelming, contact a nonprofit credit-counseling organization to work out a debt-consolidation plan. A counselor will help you consolidate your debts and will contact your debtors on your behalf to reduce or eliminate finance charges. This can reduce your monthly payments by up to 40 percent.  \n  \n4.   Steer clear of any services that offer you credit-repair or debt-consolidation loans. These companies will plunge you further into debt. Be suspicious of any company that advertises aggressively or sends unsolicited mail or e-mail.  \n  \n5.   Close your credit accounts and cut up the cards. Sell valuables or liquidate assets that will help you repay your debts. Buy the bare essentials (food and gas) and use the rest of your earnings to pay off your consolidated debts.  \n  \n6.   Work with your credit counselor to repay all of your debts. Meanwhile, live a life that will help you re-establish good credit. Pay rent and utilities or mortgages promptly, keep the same residence and job, maintain savings and checking accounts, set a budget and stick to it.  \n  \n7.   Once you have repaid your debts, apply for a new credit card to build a good credit history. It might be easier initially to get a department-store or gasoline credit card or one from an employee credit union.  \n  \n8.   Promptly pay off the balance of the credit card monthly to build good credit. Use the card responsibly.  \n  \n9.   If you don't qualify for a regular credit card, apply for a secured one. With a secured credit card, you fund an account up front and then "charge" expenses on it. This card will show up as a credit card on your credit report and, if used responsibly, can help you build a good credit history.  \n  \n  \n  Overall Tips:  \n Get a copy of your credit report once a year even if you think you have good credit. You may find errors that will damage your credit rating.  \n  \n Filing for bankruptcy is always an option, although your credit history will reflect it for 7 to 10 years, making it very difficult for you to get a car or home loan in the future.  \n  \n Creditors agree to reduce or eliminate interest rates under a debt-consolidation plan because it saves them the expense of collection efforts and increases their chances of recouping the balance.  \n  \n Every application you make for a credit card shows up on your credit report, and multiple applications can hurt your credit rating. To avoid this, use an online service that matches you with creditcard companies that will extend credit to you. Search online for "credit card finder" or "credit card search."  \n\nNo matter how bad your credit is, you can take steps that will make it better. \n  \n1.   Pay all of your bills on time. Late payments (payments that are 30 days late or more) have a negative effect on your credit rating.  \n  \n2.   Reduce the number of credit cards you carry. Write to your creditors to request that they close your accounts and report this status change to all three credit-reporting agencies.  \n  \n3.   Avoid bankruptcies, tax liens (a lien for not paying state or federal income taxes or property taxes) and collections. A bankruptcy stays on your credit report for up to 10 years. Collection accounts and paid tax liens stay on for seven years, and unpaid tax
572931
There are debt consolidation companies that will help you out. Also, you can apply for a debt consolidation loan from your own bank.
864442
Have you checked out Oprah's "Debt Diet"?  I do not have the link off hand (sorry).\nI usually advise clients to do some or all of the following (depending on how far in debt they are):\n1) cut up all but 2 credit cards and use those only for emergancies (also call the companies and cancel the cut up cards)\n2) create a livible budget that you can adhere to\n3) chart all purchases/expenses and see where you can create "free" cash\n4) withdraw only a certain amount of money each week.  That is all the cash that you have for the week - keep in mind any activities that you have occuring said week and spend your cash appropriately.\n5) get a personal accountability partner - someone that you share your weekly spending with (like a list) and will give you additional encouragement/punishment (for lack of a better word) when needed\n6) create a savings account that is only for your "wants" - you can not overdraw a savings account and you can only use what is there.\n\nFor the clients that are seriously out of hand, I usually recommend that they make their account "2 singatures for withdrawal" - that way you are not able to withdraw funds without the second account holder present.\nI hope I was able to help!
445929
Did the Earth just shake?  Something awful happened, cause we finally got a wise answer from icsowesmemoney!\n\nFact.  You owe $20,000.  \nFact.  You make $800/month\nFact.  If you were somehow able to find $200 in that tight budget, and factoring in interest payments, it's going to take over 10 years to pay this debt!\n\nThe other responders completely ignore your comments on the difficulty in finding a better paying job.  Some day, they will lose their jobs or get laid off, and will discover this fact for themselves.\n\nYou are a prime candidate for filing chapter 7.  You will not meet the "means test" because you don't make enough money to be forced into a Chapter 13 "wage earners" plan.  With no home or car, you have nothing.  \n\nCheck with the local bankruptcy attorneys, and you may even find a program for low income people and get a very low legal cost.\n\nGood luck.  You are in very good company.  Many thousands of other people filed for bankruptcy last year for this very reason.
674214
Step one - figure out exactly how much you owe and to whom.\n\nStep two - if you can't pay everybody, start by setting aside funds for your food, shelter, transportation, and clothing (all stuff you need to live) and a small emergency fund ($500-1000).  Talk to your apt. landlord and see if you can get out of your lease a month early - this may be cheaper than paying the rent for June.\n\nStep three - if you can't pay minimums on everything, contact your creditors BEFORE they start calling you.  Try to work out a payment plan that YOU can afford.  Don't let them tell you they need a certain amount (more than what you  told them you can pay).  They'll be happy to get something from you.  Only you know how much you can afford to pay them.\n\nStep four - list all your debts (except "mortgage") in order from smallest to largest.  Once you have the emergency fund, pay as much as you can on the smallest debt and minimums on everything else.  Once the first is paid off, use the money you were paying them to work on the next largest debt, so that the total amount you're paying on all your debts stays the same.  Some people may say to start with the highest interest rate, but (in the end) the amount of interest you save is so small, it really doesn't matter.  This way (smallest to largest balance) you see progress pretty quickly and it encourages you to keep going.\n\nStep five - once you're debt free, remember all the mistakes you made and how horrible this time was so you don't end up back there.\n\nIf you need more info, go to the library and look for any books by Dave Ramsey (Financial Peace, Your Total Money Makeover).
732811
I was like that for a long time, and I am only now starting to get out of it.  It is hard, but call all of your debtors, and make a payment plan.  I set it up as I would pay them each ten dollars a week, and then when I got one paid off I would pay the difference to the next smallest debtor.  A lot of times they don' t like to deal with weekly payments, but if you tell them what you can afford, and as long as you send your payments regularly, then it shouldn't be a problem.  I read a book that helped me with this as well, it was called The Four Laws of Debt Free Prosperity By Blaine Harris and Charles Coonradt with Lee Nelson.  This book really helped me, I wish you luck!