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how can i get out of debt?

everytime i try to get out of debt i seem to get in more debt.. i don't splurge on stuff but i just can't seem to get out of debt... i have horrible credit so i probably won't be able to get a loan does anyone know of a way to get out of debt without getting a loan

15 Answers

  • Anonymous
    1 decade ago
    Favorite Answer

    First of all, you are wise to realize that another loan won't get you out of debt but rather will simply transfer debt from one account to another. There's no point in doing that.

    There are only two ways out of the debt you are in... increase income or decrease spending.

    Grab a notebook or a computer spreadsheet and start out by looking at the debt you have. I mean, seriously look at the debt. Write down every loan and credit card with interest rate and minimum payment. Prioritize your debt repayment schedule in order from smallest balance to largest balance because you will have a much better feeling about things as you pay them off. Don't try to eat an elephant with a fork. You didn't get into debt overnight so you cannot get out overnight either... a little at a time.

    Call your creditors and ask for lower interest payments and to waive any fees you've been charged and ask for supervisors because their first response is NO, we cannot do that. Be persistant. Tell them of offers you have in the mail and ask if you can match the offers to keep your business. It's not going to hurt to ask. Granted your credit is horrible so you probably won't qualify for one of the other card offers you have been given. The question is do they want to lose your business? Do not cancel your cards though. That will only reduce your credit score but get those annual fees reduced and pay more than the minimum on at least ONE card so you can pay it off. If you can only pay $5 more than a minimum, that's $5 less to pay.

    Stop spending. Are you addicted to your debit card? Leave it at home. Take cash when you have to shop... use coupons, stick to a budget, and just say NO to the junk foods and other wants. Try to stick to what you need for now.

    Get a tax deferred retirement fund set up and pay into it off the top... start with 1% or 3% if that's all you can do. Also consider a savings account with another 1% to 3% that is deposited off the top. You can add to those percentages later but get a plan going.

    A plan of action is the only way you'll get out of debt. Get copies of your credit reports and your credit scores so you can watch for errors and see progress over the next 24 months. If you don't start right now, you will see things go down instead of up.

    Review your budget and keep a notebook page of all your expenses. Put each spent amount into a category... food, meal outs, parking, gasoline, With each expense ask if it's necessary and do you get long term value from it? Instead of going to a move for $7 plus snacks, why not rent a movie at home or from the library??? Instead of going to Starbucks for coffee.... why not go to McDonalds??? Do you need all of those movie channels and both a cell phone and home phone? Have you tried to reduce your car or home insurance by asking about discounts or shopping around and negotiate? You can raise your deductible to lower your payments. There are lots of ways to find $3 here and $20 there that can go to your debt repayment.

    There are lots of awesome books in the library that can help you with your debt strategies. Check out Suze Orman, David Bach, Jean Chatzkey, and others.

    We all waste money and alot of that is the result of emotional issues. You don't want to look poor so you act rich and want things you really don't need. If you plan things you can get out of debt over 3-5 years but even if it takes 7 or 10 or 25 years you CAN get out of debt. Step one is admitting you have a problem and you've done that! Congratulations!!!

  • Anonymous
    7 years ago

    Looking at your new budget, you're going to be able to see areas where you might be able to cut back. You might also see categories where you need to increase spending. In doing this step, no one is suggesting that you come up with budget amounts that are unlivable. If you try to restrict your calories excessively, what's the first thing you want to do? The key here is to be realistic. Are you paying money for a gym membership you never use, despite your best intentions? At the end of this exercise, you should have come up with a figure, a number of dollars that can be put toward debt pay down. Make a note of this figure. Day-to-day, if you don't want to keep taking note of all your expenditures, just write down what you spend in the categories you are trying to cut back. This will give you a very clear idea of how well you are doing, and, if you know you're going to go over your budgeted amount, it may help you decide to hold back on a purchase.

  • 5 years ago

    Umm, I am pretty sure statue of limitations only protects you when commit a crime (Sorry about that) Guess what two crimes it does NOT affect? Murdering someone (OF COURSE!) And not paying taxes... you still have to pay your debts. If you are in debt, make a budget, and make a list of every dime you spend. You will find somewhere where money is going that it doesn't need to be.

  • 1 decade ago

    get a small note book and write down every time you spend don't wait til the end of the day do it as you spend to find out where you can save

    pinch every penny

    go to the store buy stuff to make lunch rather than eating out

    refill water bottles out of the tap rather than buying new

    cancel cable TV if you have it(look at all the bills you get every month. Is there anything you can down grade or do without?)

    do you have a car and is it cheap reliable transportation or a status symbol (can you down grade this)

    put in overtime if that is possible

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  • Anonymous
    1 decade ago

    The most important thing is to get your spending under control and ensure that you are spending less than you earn. You can get some useful tips on reviewing your finances and dealing with debt here:

    If you feel like you need professiona help many debt management companies will offer you a free no-obligation telephone consultation.


  • 1 decade ago

    It is very easy to get rid off. When you have to spend an amount of ( say 1000) please try to do it in 900 -- it may be your family expense--company expense/festival ex--/friends party--With in a year or so you can less your debt-- you will certainly have hope --then you will find the solution with yourself--not with the help of others

  • 1 decade ago

    Get a hold on your spending habits. Self dicipline is what it comes down too. Its easy to splurge when you don't have anything. It makes us feel better. U.S is extremmely materialistic. Always trying to keep up with the "jone's ", friends,etc.

    Bottom line is within yourself...

  • 1 decade ago

    Try researching credit repair programs. There are some programs where they will compile your bills into one big one and you can make 1 payment a month. If you find yourself buying something you really don't "need", try to stop making those types of purchases.

  • 1 decade ago

    This is the best I've ever tried. We are in this program now, and it's really working. The more debt you have, and the longer you've had it, the longer and harder you will have to work to get out of it.... but this is the way.

    Good luck.

  • 1 decade ago

    work hard, dont spend money where u dont need it/use wisely, get multiple jobs, if u own a house start renting it or get an apartment or just plane old move, etc. hoped that helped =)

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