someone please help me asap

[tabbycat31]

Originally Posted by Scanner

I think this is bad advice and I'll tell you why.

1. Sooner or later, they will mark the bad debt against your credit rating - that means for 5 to 7 y ears, you won't be able to get any quality credit, just marginal, high interest credit cards - no mortgages, no quality car loans and if you do get a car loan - the salesman will screw you on the price (they always win).

2. Paying the minimum by design means the debt is never paid off - you just pay interest every month.

3. There's a psychological component to this and I apologize if I get "deep" here. I think if you just shrug your bills off, you subliminally say to yourself, "Ah, it's okay to borrow money and not pay it back." You "got away with it." You know what that is in some circles? Yup. A deadbeat.

You got all that money has to offer with the credit cards - eating out, clothes, concerts, but you didn't have to do any of the earning associated with it.

I think paying off the debts (and 5K isn't a whole lot in the scheme of things) is an important behavioral and value change you need to make. You need to go through the exercise of doing without and satisfying your debt to make a long term change.

In the end, you'll say to yourself, "It was hard but I did it."

Other than that, I think the advice was fabulous.

Most collection agencies already have the debt on the credit reports. I work for one, and they do it so it forces people to pay. It's a horrible tactic but it works.

[nanamom]

I agree, First Great that you recognize a problem and want to change, then stop spending, make a budget, get some help, and sell whatever you can. Make sure there is room in the budget for a little bit of fun money or you'll blow the budget before you get started. See if you can get some help form a consumer credit counseling place, one that isn't being investigated for fraud like the one I used several years ago. Try a local church and see if they will help advise you. Have your bills paid online and your checks direct deposited and put the ATM card in a bowl of water in the freezer. It will give you a chance to think before you use it. I also agree with starting to save, even a couple bucks will add up in the long run.

[moneymom]

hello,
this is moneymom i have read all of the reply's to my request they have had some good ad-
vice i still need advice on how to start getting out of this mess i got paid and now i am back
to the beginning please help me with a basic budget using the old envelope method i am
married my husband pays the other bills but i need help with my own debth that i have made
a mess off. thank you

[Diolla]

A basic budget-

Food
Housing (rent, mortgage)
Utilities
Gasoline

Make envelopes with Food & Gas written on the outside, put the amount you plan to spend (in cash) into the envelope.

Make a list, put the amount you have to spend at the top
Put the most important thing you need to spend on and subtract.
March down the list until you are out of money.

A good question for what is most important is "If I only had enough $$ for one thing what would it be?"

Don't let anyone else tell you what is most important, you have to decide.

Once the money is available write the checks or go online and pay down your list, withdraw the money you need for the cash envelopes and you are done until the next paycheck comes.

This is called living paycheck to paycheck, if you can squeeze even a little extra out for saving I would recommend it.

If you need more detailed help you will have to post or PM me your bills but using this method you should be able to get a handle on it.

All the Best

[PrincessPerky]

Does your husband know of your debt?

If not step one is to let him know, if you are scared of that try working up a plan t first, and then letting him know, and asking for his support to help you stay on track. (a simple good job can do wonders after a rough week)

As for exactly what you need to do....I think you said you have no re-accuring bills to pay of your own each month?

If that is true then you can skip the first part of diollas advice, you just need to pick an amount for gas and food and fun, get your three envelopes and fill them on a regular basis.

No ATMs in between, in fact freeze that atm card, and all CCs

We can't make the perfect day to fill them or the perfect amount for you.

The best we can do is suggest, a first idea would be to fill up on pay day, and that pay day also be the day you send the rest of the money to old debts. (if you can use ebill it is easy once you get the hang of it, if not, write out a check and mail it to the payment center found on the bill, include the account number, this is where your husband holding your hand is helpful for moral support ilus maybe number/address hunting-if your husband can't do it, try a credit counseling center, if they ask for money walk out, try the local phone book)

A guess on amounts of gas. food and fun would be nice and relaxed for you to start (don't expect to go from all spending to none overnight).....and that amount for me would be 40 feach, but I don't even know what you drive nor how far to work, that is just an easy number for me to stick to if I were driving and only feeding myself.

I do feel savings is important, but if you husband already has an emergency fund you can prolly skip it, and simply focus on debt, if he doesn't then set up a seperate savings account that you hide/freeze the withdrawing info for, and send a comfortable amount each payday. (10% is a good guess, but not writ in stone, 10$ is a nice round number that will grow)

If you have a feelings that tithing is important, write a check on payday before the food.gas.fun, and bill paying, and then drop it in the offering or mail it.

Short version, freeze the cards, take out roughly 120 for food, fun and gas each week, send the rest to a bill (lowest first)

[StevenM]

1 -First of all, it looks like you may have a cell phone problem. Your delinquent cell phone bills total around $1,000. If you still have a cell phone, throw it in the nearest deep body of water and don't get another one for at least 3 years.

2 - Pay off your total debt with the highest interest rate obligation first, while paying only the minimum on the other debts. When it's paid, switch the money you were paying on the first debt to the second, while paying only the minimum on the other cards/bills. As you get the bills paid off, you'll be putting more and more toward each credit card or other debt in the sequence, until you're debt free.

3 - Free up as much extra cash as possible - go to the No Credit Needed Blog, where they have a post in which people sent in their best money saving tips. There's a wealth of inormation there. You'll find it here: http://www.ncnblog.com/2007/01/16/yo...-tips-updated/
My favorites are cutting frivilous spending and buying your groceries at a warehouse food store. You can find tons of tips on my blog "Debt Free" as well. There's a link in my signature.