Re: How can I get out of credit card debt?

Anonymous · ‎05-09-2009

like others said, but I'll bullet a quick list:

1. Get a written budget TODAY. Identify all income and all expenditures

2. KILL all non-essential spending. No eating out. No renting movies. No fast food. No impulse buys, etc.

3. Cancel cell phone or downgrade to the minimum possible plan cost.

4. Cancel cable/satellite tv or downgrade the most basic, cheap cost.

5. Have a garage sale, ebay sale, craigslist sale. Sell the stuff you don't use, don't want, don't need, don't remember stored in the garage, attic, closet, under the bed, laying around gathering dust or ESPECIALLY if in paid storage unit. Sell luxuries you can live without.

6. Get another part-time job, even if it is fast food, grocery store, lower paying. The additional income can ALL go toward debt. Just a few extra hundred per month really makes a dent.

7. Start listening to Dave Ramsey daily for "get out of debt info"

8. Employ the "snow ball" debt method. Pay minimums on all cards, but pay as much as possible toward your lowest balance card. Once paid off, use that money plus the normal minimum toward the next lowest balance. Continue till all paid off.

9. DO NOT use credit cards for any new accumulation of debt.

10. Refi your existing car payment to a lower APR longer term loan to reduce the payment.

11. Call your Credit Card companies and see if you can negotiate lower APR, even if for a temporary period of time so that you can make more headway on principle.

12. Move to a lower cost housing arrangement. Get a room mate to share costs.

13. Turn the thermostats up/down accordingly for lower electric.

14. Make sure you car is tuned, oil level is full and tires are at optimum pressure....helps improve gas mileage.

15. If you use laudery/dry cleaners....start doing your own laundry.

16. If you are single and live close to parents or family, consider seeing if you can move in with them for 6 months till debt is paid down.

17. Car pool if/where applicable.

18. Walk more, ride a bike where applicable.

19. Go generic and off label brands for grocery and personal care products.

As you can see there are a million little things you can do....and added together they can really add up.

Message Edited by txjohn on 05-09-2009 01:30 PM

Anonymous · ‎05-09-2009

@Anonymous wrote:

7. Start listening to Dave Ramsey daily for "get out of debt info"

Now, let's not get extremist in the other direction .

athensguy · ‎05-09-2009

@Anonymous wrote:
Wow, buy a cheaper car!

It's a shame that we Americans are being brainwashed into believing everyone needs to drive a $20k+ car.

You can't extrapolate the cost of a car just from the payment.

You also need to know length of loan and interest rate. If it's a 3 year loan with a good interest rate, $450 would still be an inexpensive car.

Anonymous · ‎05-09-2009

@athensguy wrote:
@Anonymous wrote:
Wow, buy a cheaper car!

It's a shame that we Americans are being brainwashed into believing everyone needs to drive a $20k+ car.
You can't extrapolate the cost of a car just from the payment.

You also need to know length of loan and interest rate. If it's a 3 year loan with a good interest rate, $450 would still be an inexpensive car.

It's only inexpensive, if it doesn't prevent you from getting rid of your credit card debt.

Anonymous · ‎05-09-2009

@athensguy wrote:
@Anonymous wrote:
Wow, buy a cheaper car!

It's a shame that we Americans are being brainwashed into believing everyone needs to drive a $20k+ car.
You can't extrapolate the cost of a car just from the payment.

You also need to know length of loan and interest rate. If it's a 3 year loan with a good interest rate, $450 would still be an inexpensive car.

Somewhat true yes.

I personally think it's best to only pay cash for cars after having made the mistake of buying one that's too expensive.

I only think houses should require loans. Don't get me started on people who buy furniture/electronics/etc on loans.

athensguy · ‎05-09-2009

@Anonymous wrote:
@athensguy wrote:
@Anonymous wrote:
Wow, buy a cheaper car!

It's a shame that we Americans are being brainwashed into believing everyone needs to drive a $20k+ car.
You can't extrapolate the cost of a car just from the payment.

You also need to know length of loan and interest rate. If it's a 3 year loan with a good interest rate, $450 would still be an inexpensive car.
Somewhat true yes.

I personally think it's best to only pay cash for cars after having made the mistake of buying one that's too expensive.

I only think houses should require loans. Don't get me started on people who buy furniture/electronics/etc on loans.

I'd prefer to buy my next car on a CC.

Anonymous · ‎05-09-2009

@Anonymous wrote:
@Anonymous wrote:

7. Start listening to Dave Ramsey daily for "get out of debt info"
Now, let's not get extremist in the other direction .

The OP suggested going BK, so I think "extreme measures" are appropriate in this instance.

Anonymous · ‎05-09-2009

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:

7. Start listening to Dave Ramsey daily for "get out of debt info"
Now, let's not get extremist in the other direction .

The OP suggested going BK, so I think "extreme measures" are appropriate in this instance.

Did he? I didn't see BK mentioned. I also don't see how a BK would be approved with those numbers. The credit card debt is two months' net salary.

wmarat · ‎05-09-2009

@Anonymous wrote:
like others said, but I'll bullet a quick list:

1. Get a written budget TODAY. Identify all income and all expenditures
2. KILL all non-essential spending. No eating out. No renting movies. No fast food. No impulse buys, etc.
3. Cancel cell phone or downgrade to the minimum possible plan cost.
4. Cancel cable/satellite tv or downgrade the most basic, cheap cost.
5. Have a garage sale, ebay sale, craigslist sale. Sell the stuff you don't use, don't want, don't need, don't remember stored in the garage, attic, closet, under the bed, laying around gathering dust or ESPECIALLY if in paid storage unit. Sell luxuries you can live without.
6. Get another part-time job, even if it is fast food, grocery store, lower paying. The additional income can ALL go toward debt. Just a few extra hundred per month really makes a dent.
7. Start listening to Dave Ramsey daily for "get out of debt info" BAD ADVICE
8. Employ the "snow ball" debt method. Pay minimums on all cards, but pay as much as possible toward your lowest balance card. Once paid off, use that money plus the normal minimum toward the next lowest balance. Continue till all paid off.
9. DO NOT use credit cards for any new accumulation of debt.
10. Refi your existing car payment to a lower APR longer term loan to reduce the payment.
11. Call your Credit Card companies and see if you can negotiate lower APR, even if for a temporary period of time so that you can make more headway on principle.
12. Move to a lower cost housing arrangement. Get a room mate to share costs.
13. Turn the thermostats up/down accordingly for lower electric.
14. Make sure you car is tuned, oil level is full and tires are at optimum pressure....helps improve gas mileage.
15. If you use laudery/dry cleaners....start doing your own laundry.
16. If you are single and live close to parents or family, consider seeing if you can move in with them for 6 months till debt is paid down.
17. Car pool if/where applicable.
18. Walk more, ride a bike where applicable.
19. Go generic and off label brands for grocery and personal care products.

As you can see there are a million little things you can do....and added together they can really add up.
Message Edited by txjohn on 05-09-2009 01:30 PM

IN VINO VERITAS.

Anonymous · ‎05-09-2009

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:

7. Start listening to Dave Ramsey daily for "get out of debt info"
Now, let's not get extremist in the other direction .

The OP suggested going BK, so I think "extreme measures" are appropriate in this instance.
Did he? I didn't see BK mentioned. I also don't see how a BK would be approved with those numbers. The credit card debt is two months' net salary.

Whoops....I had been replying to 2 separate threads and got my OP's mixed up....sorry

How can I get out of credit card debt?

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