Need financial advice

[lkohana]

We are back to $25000 in debt not counting our 2 vehicles. I am just wondering if any one has any advice on how to get rid of this...either with a loan or debt consolidation. I am a SAHM with two kids and cant afford the daycare to go back to work. I quit a job of 11 years and right now my husband is deployed and I am pretty much having to support 2 households right now. I dont know how much longer I can do this barely living paycheck to paycheck. Please help

[mbcclady]

I don't have any advice, but here's a .

[BlueBird]

I understand where you're coming from. We have one car and a lot more debt than the number you mentioned without calculating the car into it. Here's what we're doing to get back on our feet and out of debt...

1. Budget. Down to the last penny.

2. Emergency Fund. We round down in our checking account and take out the difference and put it into a locked box in our closet. IE: You have 416 leftover after paying bills, take the 16 out and put it away and work with the 400 you have left. It might seem like you don't even have the 16 to put away, but I promise if you do it you won't notice it.

3. Sell a car if you can. Try to get down to only one car - it sucks, but you can use the cash to pay off your other debts and later, you can save and buy another car in cash. You could even use half of the money you get from selling one car to buy another one cheaper - in cash.

4. Call ALL your creditors. Ask them to negotiate your account. I have gotten all of our interest rates down and our highest used to be over 29% and is now 5%. That's our HIGHEST. Your creditors WANT to work with you but you have to approach them, so do it.

5. Cut out everything you can... cut cable tv and watch movies or get netflix - $18 (for netflix) is better than $50+ for cable. Turn off your home phone. Lower the minutes on your cell phone. Make a list and get your groceries all at ONE time instead of making multiple trips. Go through your house and deep clean - have a garage sale. Stuff like this adds up quick.

I don't advise consolidation or another lay to pay off debts - but thats just my personal opinion. Robbing peter to pay paul just seems to not make sense.

[360Sweetie]

I agree with all that Srahscat as said especially selling one of the cars since its only you driving right now if you can.

[imjustme]

Originally Posted by SrahsCat I understand where you're coming from. We have one car and a lot more debt than the number you mentioned without calculating the car into it. Here's what we're doing to get back on our feet and out of debt... 1. Budget. Down to the last penny. 2. Emergency Fund. We round down in our checking account and take out the difference and put it into a locked box in our closet. IE: You have 416 leftover after paying bills, take the 16 out and put it away and work with the 400 you have left. It might seem like you don't even have the 16 to put away, but I promise if you do it you won't notice it. 3. Sell a car if you can. Try to get down to only one car - it sucks, but you can use the cash to pay off your other debts and later, you can save and buy another car in cash. You could even use half of the money you get from selling one car to buy another one cheaper - in cash. 4. Call ALL your creditors. Ask them to negotiate your account. I have gotten all of our interest rates down and our highest used to be over 29% and is now 5%. That's our HIGHEST. Your creditors WANT to work with you but you have to approach them, so do it. 5. Cut out everything you can... cut cable tv and watch movies or get netflix - $18 (for netflix) is better than $50+ for cable. Turn off your home phone. Lower the minutes on your cell phone. Make a list and get your groceries all at ONE time instead of making multiple trips. Go through your house and deep clean - have a garage sale. Stuff like this adds up quick. I don't advise consolidation or another lay to pay off debts - but thats just my personal opinion. Robbing peter to pay paul just seems to not make sense.

Great advice!!

[Sugar Butt]

Originally Posted by SrahsCat I understand where you're coming from. We have one car and a lot more debt than the number you mentioned without calculating the car into it. Here's what we're doing to get back on our feet and out of debt... 1. Budget. Down to the last penny. 2. Emergency Fund. We round down in our checking account and take out the difference and put it into a locked box in our closet. IE: You have 416 leftover after paying bills, take the 16 out and put it away and work with the 400 you have left. It might seem like you don't even have the 16 to put away, but I promise if you do it you won't notice it. 3. Sell a car if you can. Try to get down to only one car - it sucks, but you can use the cash to pay off your other debts and later, you can save and buy another car in cash. You could even use half of the money you get from selling one car to buy another one cheaper - in cash. 4. Call ALL your creditors. Ask them to negotiate your account. I have gotten all of our interest rates down and our highest used to be over 29% and is now 5%. That's our HIGHEST. Your creditors WANT to work with you but you have to approach them, so do it. 5. Cut out everything you can... cut cable tv and watch movies or get netflix - $18 (for netflix) is better than $50+ for cable. Turn off your home phone. Lower the minutes on your cell phone. Make a list and get your groceries all at ONE time instead of making multiple trips. Go through your house and deep clean - have a garage sale. Stuff like this adds up quick. I don't advise consolidation or another lay to pay off debts - but thats just my personal opinion. Robbing peter to pay paul just seems to not make sense.

fantastic advice...

we did a lot of what is mentioned above.. and I had at least double the debt you have now and it is now almost gone...

[New2This]

Originally Posted by SrahsCat I understand where you're coming from. We have one car and a lot more debt than the number you mentioned without calculating the car into it. Here's what we're doing to get back on our feet and out of debt... 1. Budget. Down to the last penny. 2. Emergency Fund. We round down in our checking account and take out the difference and put it into a locked box in our closet. IE: You have 416 leftover after paying bills, take the 16 out and put it away and work with the 400 you have left. It might seem like you don't even have the 16 to put away, but I promise if you do it you won't notice it. 3. Sell a car if you can. Try to get down to only one car - it sucks, but you can use the cash to pay off your other debts and later, you can save and buy another car in cash. You could even use half of the money you get from selling one car to buy another one cheaper - in cash. 4. Call ALL your creditors. Ask them to negotiate your account. I have gotten all of our interest rates down and our highest used to be over 29% and is now 5%. That's our HIGHEST. Your creditors WANT to work with you but you have to approach them, so do it. 5. Cut out everything you can... cut cable tv and watch movies or get netflix - $18 (for netflix) is better than $50+ for cable. Turn off your home phone. Lower the minutes on your cell phone. Make a list and get your groceries all at ONE time instead of making multiple trips. Go through your house and deep clean - have a garage sale. Stuff like this adds up quick. I don't advise consolidation or another lay to pay off debts - but thats just my personal opinion. Robbing peter to pay paul just seems to not make sense.

Great Advice! I would suggest looking in to Dave Ramsey. A lot of people have success with his plan. You can watch his show on HULU and get a lot of free resources on his website. Rent his book from the libary. It will help. It's along the same lines above. I don't advise debt consolidation or another loan either. Plus debit consolidation will hurt your credit. It's almost the same as BK credit wise.