need advice

[roseb510]

im 22 and I am currently around 4,000 in debt and am having trouble keeping up with my minimum payments. I have considered a few ways to help me consolidate or eliminate my debt but i have no idea how. I need advice, i dont have anyone to co sign on a loan for me which im sure will make things difficult. I was thinking of debt consolidation but dont have any idea on how to start or what kind of process it requires...plus doesnt it cost money to do so? What about loans? if i were to take out a loan for around 3 grand how much would i have to pay a month or how long would i have to pay it off? or without a cosigner is it just impossible for me to get one?

im clearly lost and have no one i can turn to for advice, i know im in trouble but i just want to take care of it now! I want to be able to afford to go to school!

[puck36]

1) What is the $4,000 debt?
2) How much do you make?
3) How many hours do you work?
4) What other bills do you have? (Rent, Car, ect.)
5) Are you on a budget?

[disneysteve]

We really need much more info to try and answer your question. $4,000 doesn't sound like very much debt, but it all depends on your situation. If you post your budget here, I'm sure we can help you figure out how to attack this. With no more info, I'd venture to say picking up extra hours at work or a second job would be the quickest way to wipe this out. Also, if there is anything you could trim or eliminate from your budget, you'd have more to apply toward the debt. But without seeing your current budget, we can't give any other advice.

[maat55]

One thing you should do is STOP using the cards. Get a part-time or second job. As listed above, knowing your budget will be helpful.

Earning more and spending less is always the first step. It could also just be a spending problem.

[roseb510]

1) What is the $4,000 debt? all 4000 is credit cards i believe i have 7
2) How much do you make? i'm hourly so monthly i bring in 1,200 to 1,500 but i am 12.80 an hour
3) How many hours do you work? 32-35 hours a week...everyone is getting hours cut
4) What other bills do you have? (Rent, Car, ect.) just rent which was 650 but i just had someone move in so now it is 450 for me
5) Are you on a budget? nope

let me also mention i live in NYC where everything costs more haha i really appreciate this!

[jIM_Ohio]

Stop using the ccs now. Stop overspending (spend less than you earn every week/month/year). Live on a budget.
What are EXACT balances and interest rates on each card?
Can you afford to send extra to each card each month?
What are the available balances on each card?
Do you have balance transfer offers to take advantage of?
What are the minimum payments on each card?

Basic process:

Card 1 X% balance of $2k available limit is 2k with a payment of $s
Card 2 X-1% balance of $1k available limit is 3k with a payment of $t
Card 3-4-5-6-7 balance of $yk available limits of a-b-c-d-e with payments of $l-$m-$n-$o-$p

There are 3 ways to fix this:

1) rank each card based on the highest interest rate first. Pay extra on that until paid off (paying minimums on others). When card 1 is paid off, apply extra payment to card 2. Contine until all cards are paid off. This will be the fastest way out without consolidating.
2) Rank the card based on lowest princpal balance and pay the card with the lowest balance first. This will improve cash flow quicker but take longer to pay off.
3) rank the cards based on credit limit. Pay off the card with the highest limit first, then consolidate all other cards onto this card if interest rate it right. This may or may not be better than 1 or 2, depends on minimum payment, balance and interest rates.

[maat55]

1) What is the $4,000 debt? all 4000 is credit cards i believe i have 7
2) How much do you make? i'm hourly so monthly i bring in 1,200 to 1,500 but i am 12.80 an hour
3) How many hours do you work? 32-35 hours a week...everyone is getting hours cut
4) What other bills do you have? (Rent, Car, ect.) just rent which was 650 but i just had someone move in so now it is 450 for me
5) Are you on a budget? nope

let me also mention i live in NYC where everything costs more haha i really appreciate this!

You definatly need a part-time job and a strict budget for a while. If you cannot pay your card in full, do not use it. Read some personal finance books, they will help you.

[Angio333]

Dave Ramsey's plan works. GIve it a try.

Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.

[roseb510]

i dont use any of my cards anymore and 2 of them are maxed out...i can barely make my minimum payments though.

what about loans or debt consolidation? how do they work?

[disneysteve]

what about loans or debt consolidation? how do they work?

Forget loans. You CAN NOT borrow your way out of debt. All that does is shift who you owe the money to. Yes, it may lower the interest rate, but it isn't really doing anything to solve the problem. And I don't think you want to deal with debt consolidation for such a small amount of money and risk messing up your credit rating.

You are only working 32-35 hours/week. You live in NYC. Surely, you can find a part-time job somewhere. Check retail stores, restaurants (there are a zillion of those in NYC), theaters, etc. Walk dogs. Water plants for folks on vacation. Whatever you can get.

Your rent just dropped by $200/month. That alone will save you $4,000 in 20 months. Start sending that extra $200/month to the credit card with the highest interest rate. Once that one is paid off, move on to the next highest and so on.

[fruitbowlk]

i dont use any of my cards anymore and 2 of them are maxed out...i can barely make my minimum payments though.

what about loans or debt consolidation? how do they work?

I do not think you need a loan or debt consolidation. If all you have to pay is 450 in rent, why can't you afford to pay off your debt? Where is your money going? Have you tried calling the cc company and letting them know you are having money problem and maybe working out some type of plan with them?

[maat55]

Your looking for an easy fix. Working more and spending less is your real solution. Once you get started doing this, it will get easier. Paying off this 4000 is only your starting point, you will need to establish a plan for your income, for the future. Read some personal finance books.

[disneysteve]

You earn at least $1,200/month and now pay $450 for rent. That leaves $750/month or more (you said some months you earn up to $1,500). Tell us where all of that money is going and maybe we can help advise you on trimming expenses.

[roseb510]

well
my phone bill is roughly 120
utilities which is roughly 100 a month.
81 for a metro card
i smoke a pack a day 6 bucks a pack...thats probably whats killing me

maybe i really just need to quit smoking

[maat55]

well
my phone bill is roughly 120
utilities which is roughly 100 a month.
81 for a metro card
i smoke a pack a day 6 bucks a pack...thats probably whats killing me

maybe i really just need to quit smoking

That would be a good start. Smoking over your lifetime, will cost much more than just the price for the pack. Health ins. and life ins. are drastically higher.

You should also challenge yourself to have a second or part-time job by the weekend. I've heard that delivering pizzia can earn you 1500 a month, in the evenings.