Debt Help

Ways to Pull Yourself Out of Debt

Hi,

I was just wondering if could help me with credit problem.

When I graduated from high school, I applied for a whole bunch of credit cards and I'd go out and buy everything that I wanted.

I thought that I was going to be able to pay them back, but I thought wrong!

Now I owe every credit card company. Now my credit is bad and I owe over $15000.

Is there anything I can do to fix my credit?

Please Help!!!!

M.P.

You say you owe over $15,000 and your credit is bad. I don't know if you have defaulted on your debts yet.

Whether you have or haven't here are some things to try:

Read Credit Counseling to learn about credit counseling agencies and how to pick a good one. Then go for a consultation and see if they can do anything to help you.

You would want the agency to work out a debt repayment plan that you can realistically stick to and that will get you totally debt free in no longer than five years.

If they can't help, call your local Bar Association's Lawyer Referral Service and get the names of attorneys who specialize in consumer credit issues and/or bankruptcy. You will be entitled to a free consultation.

See if the lawyer would be able to renegotiate your debts. You would want to cut your debts in half, at the least, and have a realistic time frame to pay off the rest.

You will probably need to raise some cash for this to work. You might have to borrow from family or friends, sell your car or get a second job.

If neither of these options would work, you could, of course, file for a Chapter Seven Bankruptcy discharge. This should be your last option, but use it if you have to.

If you want to fix your credit rather than discharge it, work at it.

Cut up the credit cards and stop spending.

Get a second job and cheaper housing.

Sell your car and take the bus.

Use every extra cent you have to pay down debt.

If you can afford to, buy Quicken Premier. You don't need the latest version. Anything after the 2001 version has the debt reduction module.

Using this program, you can work out a schedule to repay your debts more quickly, while saving yourself thousands in interest. If you can't get your hands on the program, many credit counseling agencies will sell you a debt reduction schedule based on information you provide for about $20.

Either way, as long as you're not longer using credit, you should be able to work your way out of your hole in about 8 years without increasing what you're paying now.

If you could add a $100 or more dollars a month, you'll be debt free in about 5 years. At first it will be hard, but once the balance start to go down, you'll breathe easier. When you're finally debt free, you won't believe how good you will feel.