In my early 20’s I was very stupid with my money and have been trying to get out of debt ever since. I’m now 30 and it seems like I still havent gotten anywhere. I have three credit card balances that are all behind with a total balance of approx. $6,000. Has anyone used a consolidation company that they could recommend? I tried one but wasnt happy with their service.
I’m afraid the only way out of debt is to pay it off by spending less than you earn.
Write down your income and your outgoing (including those debt repayments).
If outgoing higher (as it unfortunately often is), decide what you’re going to give up (smoking / gambling etc).
That’s it - there is no other way. (Well you can try for the lottery or a rich relative, but those are not exactly secure!).
‘Debt consolidation’ should really be called ‘debt increase’. Think about it. You owe a lot of money. You’re paying some companies interest. Suddenly a new company offers to take on all your debts - and charge you ‘less’?! But you’re a bit of a risk (to put it mildly). Why would they do that?
Read the small print. I bet they’re going to charge you more interest, not less.
There’s an interesting TV program here in England, where an American guy, Alvin Hall, meets people in debt and analyses along the above lines.
It’s tough to get out of debt - good luck to you(and self-discipline!)
Not sure where you are from but I have often sent people to firms that provide debtors assistance and sometimes debt consolidation. While some businesses in this line charge outrageous interest rates even they may be an improvement over credit card debts. With long term amortization they may reduce your monthly payments to something that you can manage. Yes, this may mean you end up paying more but it also may keep you from defaulting and ruining your credit rating.
Often creditors can be convinced to accept settlements which really make the arangement worthwhile. The ability to negotiate these kinds of deals obviously has a lot to do with the bankruptcy provisions in your juridiction.
I found good one, about eight years ago. It’s called The United States Bankruptcy Court. Chapter 13 was sooo easy and solved a lot of problems instantly.
Our youngest son was in the neonatal ICU for three weeks and we had to pay a twenty percent deductable. The wife had to quit her job to stay home with him when he got out. Shit piled up over the next year.
It saved our house, and we actually ended up with decent credit when it was all over.
Better hurry…