[USER]

Single person working 2 jobs, but I owe like $27k in cc and then I also took out a personal loan last year that I still owe $24k on. What would you suggest as a best course of action? Should I do debt forgiveness or debt consolidation?

I’m so embarrassed/mad at myself. Prior to this I was completely debt free and then went crazy and it just snowballed!

[Jeri]

You need a second or third job. Cut all unnecessary spending. Might take 5years to pay it off and it will.

Hurt but maybe then you will have learned your lesson and will think twice about using a credit card again.

[Caeley]

Part time job and only use that paycheck for debt.

[Dana]

Don’t do debt consolidation it’s a joke. if you can work one job that offers over time that’s how you can make the most. like another person said, if you own a house, sell and gets roommates. You can call credit card companies and ask them to lower interest rates (or write letters). it does not always work.

Don’t miss: Another debt bites the dust!

[Kelsey]

I’d look into Dave Ramseys steps for dealing with debt. There’s no easy way through this, but you CAN get rid of the debt.

* side note- one of the fastest ways to save is on housing. If you aren’t already sharing a place with roomates, do that. If you have the option to have lower housing costs in any way, do that. You can easily save hundreds.

Don’t consolidate.

[Shelly]

If employer has employee assistance program that offers therapy, I would get help to see why you’re spending like this so you can feel better inside.

[Reba]

First of all You can do it! But it takes discipline so do debt forgiveness then debt consolidation later and live minimally on everything,

Food, utilities, cable phones, transportation, etc put every penny towards the debt. Don’t tell anyone because you don’t need the stress. When debt is paid put same amount in bank for awhile, best life lesson you will ever learn is how to live on less!

Good luck

Explore these too: I’m curious How to go about medical debt?

[Michele]

You are trying to fill a void in your life sounds like. Debt consolidation will only work if you eliminate some of the credit cards and quit the spending.

Otherwise you have just freed up more credit to spend. Think about what you are buying and is it actually a need or a want. Before you purchase on line put it in your cart and wait a few days.

Then reassess. You will normally find that it was an urge and something you can do without. Unless you like debt. Nothing changes if nothing changes.

Working 2 jobs and having all that debt is Def something to look at.

[LoriJeanne]

What worked for us was to take one thing at a time. Pay minimum on everything else. Either highest interested or lowest balance (or combo). Pour everything you can into that bill until its gone, then you have that money for the next one.

Still do a little saving. $5 a month adds up (slowly).

Set aside a little “fun” money. This may be long and challenging. It doesn’t have to be much. Maybe an inexpensive dinner out once a quarter, or even a candy bar once a month. Plan for something small and limit spending to just that little budget.

Good luck.

I do agree with others, consolidation loans are tricky, beware.

Don’t forget to take a look at: Does anyone have an organized spreadsheet or way of listing their debt to begin the debt snowball?

[Shawn]

Dave Ramsey offers a great plan for getting out of debt. I would start by gutting major expenses..car and housing.

[Toni]

PLEASE stop being so hard on yourself. Making mistakes is a part of life and how we learn!! (I went through this too). There are two things I did that helped. 1. I cut up all but one credit card and that one I froze in a baggie in ice. 2. I paid minimums on all credit cards except one (usually the lowest and paid double the minimum on it). This is way before I had ever heard of Dave Ramsey. Like others have said you have to cut out all extras and things you don’t really need. Any subscriptions, cable, lower your plan for car insurance, talk to your phone carrier about a cheaper plan, make food at home. This one is a biggie. I have always taken left overs for my lunch which helps. Plus I don’t like coffee so that saves. Those two things alone will save you $50 dollars a week easily. GIve yourself a goal “In 3 months, I will have this balance down to $1200”. And as hard as it is, you still need to save. Even if you take $20 and put it in an envelope for emergencies, it’s something. Good Luck. Once you start seeing the light at the end of the tunnel, it will spur you on. You can do it!!!

[Michele]

Yeah…that interest is eating up most of your payments. Call cc company and see if you can get a reduced interest rate. Same on other.

[Susan]

Put yourself on a spending diet. Buy store brands, don’t buy until you absolutely need it. Eat at home. Combine trips to save gas. Pay as much as you can on the smallest cc balance first, pay minimum on the other cc.

When the first one is paid off add that payment to the next smallest and so on. It takes a while to get out of debt so have patience. It helped me to actually write it out on paper and see the plan. Good luck. We have all been there.

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