Need advice in being debt-free and saving money

[canada94]

Save 10% of your income, it may seem hard at first, you just have to start, i recommend you get a book by George S Clason 'the richest man in Babylon'its a classic, it got me financially free just using the principles.

Hope this helps

kevin

[nwins002]

Don't ever ever go out to eat. Not sure if you do now, but that's what takes so much of my income. Shop cheaply and wisely for food, and only eat out (fast food included) once a month or less.

[KennySoward]

I agree with everyone here. Some great budgeting tips. Also, very important to get some income rolling. I know school is hard (I went through it and my g/f currently is too) but it has to be worked out.

Flexible jobs like waiter, pizza delivery, etc are all good. Also, if you have any writing skills, you can try getting on at Demand Studios (DemandStudios dot Com) which pays around $15 per article (I work for them between freelance jobs and selling my book). The point is, be creative about it.

The trick is to work enough so that you aren't killing yourself. Don't be afraid to cut back when finals approach or to work more hours during breaks.

[CCCFree]

I completely hate pay day loans places and they are just hideous for you. I figured out the annual interest rate for one of these thing sand it was completely out of control!

[Eric80]

My niece was in a similar situation and then i took her to go and see a debt advisor where they advised her on how to resolve this. They suggested an IVA which allowed her to manage her debt. As far as I know she id doing really well with it and is close to paying it all off now. She is a lot happier and is now able to enjoy her life now.

[danielfal]

Continue to save money. Establishing an emergency fund is the 1st thing you should focus on. Then you can focus on paying off the loan with the highest interest payment. Good Luck

[thefrugallery]

To echo what some others are saying, get creative! You need more than $300 in cash flow to get things moving. Get another job, sell things on EBay/Craigslist, sell books online, donate plasma, get odd jobs through Elance. Funnel all of the extra money directly into a savings account where you can build up a 6 month cushion. Once you have that, focus on paying down your debt.

Good luck!
The Frugallery

[Kooshiball]

I totally agree with Canada94. Richest man in babylon is great book for the person who wants to be financially responsible. And yes, educating yourself about money is the most critical thing people should do in order to get finance in order. You may be able to correct the credit by credit repair etc but if you are not financially educated, you will go back to the same hole. I know you are still student so don't have much saving but you can start with reading books, such as

Richest man in babylon
Rich Dad Poor Dad (Robert Kiyosaki)

I would recommend you to
- Spend less for the entertainment - drink, eat out, buy expensive thing you don't need (liability)
- Educating yourself by books or audio programs
- Hang out with like-minded people (financially responsible people) - you can go to local investment meeting etc.

Believe me, if you deligently keep doing this for one year, your life will change dramatically...

Good luck!

[debtmediators01]

Debt Consolidation

If you are going through such situation and want to get freedom from all previous debts and ill treatment and bothering of creditors then debt consolidation is the most preferred option for you.

[ecoadapt]

Well it's more that they've already affected your creditworthiness. Paying them off won't take them off your record. And it won't help your current position any either.

DS was saying if they are current, it would harm your credit to let them go to collections, so you should keep paying. But once they're in collections, essentially the damage is already done.

Your decision of: should I pay them? should be based on 1) do I have the money today? 2) would paying them that money leave me in an adverse financial situation? 3) would I still have money to eat if I paid them?

So you almost have the money, but paying it to the bill in collections would literally affect your ability to provide food for yourself. Your survival is more important than your credit report.


Ultimately, you'll want to pay them off. It's just the right thing to do. But right now, you're honestly just not able to do that. So don't pay them a thing.

Pretty well said! So,in your case you said it's on collection so 'damage' has been done. Paying them won't take away the 'dirt' in your credit!