25 years old and $18,000 in credit card debt?

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I know, Im beyond dumb. Getting myself into this much debt was a HUGE mistake & even worse I have nothing to show for it. But what do you think I should do. I make decent money, have $ 0 in savings & pretty much live paycheck to paycheck because of all of my monhtly payments. I need to buy a house in the next 2 years or so & want to get rid of a lot of this debt. All of my bills are paid on time, but between rent, car payments, utilities, phone etc. I can only make a little bit more than the minimum payments. Do you recommend a consolidation or debt management agency or keep doing what Im doing. I transfer balances to 0% apr as much as possible, but I still have a few with interest and I still $ 18,000 IN DEBT. I hate this dark cloud hanging over my head! I need help!!!

  1. Reply
    June 29, 2011 at 5:24 pm

    consolidate them!

  2. Reply
    June 29, 2011 at 6:08 pm

    Why don’t you concider starting a small business. Sell on eBay. I sell on eBay and at first I started selling small items to get the experience. Then after searching and searching for the correct thing to sell I was successful. I am a stay at home mom and make from $ 2,000 to $ 6,000 a month. I like to help my husband with the bills plus you feel great making money. Search around make a plan and start from there. I sell diamond jewelry and sell at least 3 thing per week but keep in mind that doesn’t sound like much but each thing I sell I profit atleast $ 1,000. Hope this helped I too have so many bills. I own a home have two trucks 3 credit card payments, hospital payments ect. My eBay user ID is Emeraldsblingz just incase you want to take a look and get an idea.

  3. Reply
    June 29, 2011 at 6:38 pm

    step 1. Get all your credit cards, a scissor and the kitchen table. Cut them all up into little pieces, except for one, which you will take tomorrow morning and put in your safe deposit box. Until you are totally debt-free, you have to promise yourself not to apply for, accept or use any credit card.

    step 2. A consolidation loan will only make things worse if you are unwilling to change your spending habits. So if you can do step 1, then you can shop for a consolidation loan .

    step 3. No matter what, nuclear attack, global warming or the second coming….make more than the minimum payment on each card bill as it comes. Skip movies and eating out – hock the rolex and get a second job if you have to…. but make more the minimum payment each month.

    step 4. In 2 years, your credit will look a lot better… you’ll have less debt, a great payment record and your self esteem will skyrocket. It should be pretty easy to get a mortgage loan ..

  4. Reply
    June 29, 2011 at 7:17 pm

    1) Stop using your credit cards
    2) Stop any discretionary spending — movies, eating out, clothes, cable TV (keep basic and dump the rest), etc.
    3) Call your credit card companies and ask them to lower your interest rate. If they say they can’t help you, ask to speak to a supervisor. This is especially effective if you get a zero percent offer from another company. You can then say, “Well I have an offer for zero percent from XXX company…” Be persistent.
    4) Some people recommend making the minimum payment on all cards except the one with the highest interest rate, on which you should pay as much as you possibly can. Others say pay the minimum on all cards except the one with the lowest balance, on which you should pay as much as you can. Do whatever feels psychologically better to you.
    5) Once you’ve paid off the first card, pay all you can to the next card on the list (while making minimum payments on the rest).

    I think you can get out of debt yourself without a consolidation loan (which will not help unless you change your spending habits). There’s no question this will mean making difficult changes, but if you want it bad enough you’ll do it.

    Watch Big Spender on A&E for a tough love approach to getting out of debt. Great show!

  5. Reply
    June 29, 2011 at 7:54 pm

    Do you really want to get out of debt? Because the solution isn’t pleasant. If you’re not willing to stick with it, don’t bother reading any further.

    1. Cut up all credit cards. You are going to live cash only from now on – no excuses.

    2. Draw up a budget of what you currently spend. On one side essentials (you’ll die if you don’t have them. They are usually food, rent, clothing, utilities). On the other side put discretionary spending (cell phone, car, movies, satellite/cable, Internet etc).

    3. Total up your minimum balance payments on your loans and your essential spending. Take that away from your monthly income. Say that gives you $ 1000. Now you take half of THAT and apply it to your debt as well. Now you are making the minimum payments, PLUS half your discretionary funds.

    4. Take the other half of your discretionary money, and divide that in half. Now put one half in a Saving account. You have to save up 3 months income to have an emergency fund. You are NOT allowed to withdraw from that fund for birthdays, special occasions or anything else, other than a real emergency to do with hospitals, death in the family, loss of job.

    5. The remaining part of your discretionary spending; look down the right hand side of your list, which is all your current discretionary spending. Pick the things that you can cover with the remaining money. If it only leaves you the money for your night out at the movies, so be it; the cellphone, car, cable etc all have to go.

    Remember that it may be inconvenient, but you CAN get around on public transport; you won’t like it, but you CAN do without a phone (there are pay phones you can use for emergencies outside your home). Internet is available for free at the library.

    The last thing to do – look through EVERYTHING you have. Anything that isn’t essential, try and sell on eBay, Craig’s List or through local papers.

    Stick with this whole plan for a year – it will seem like an eternity; then repeat the planning process, and see if you can increase your discretionary spending.

    I told you you wouldn’t like it, but if you want to turn your life around, this plan will do it for you.

  6. Reply
    June 29, 2011 at 8:14 pm

    Two things you must do immediately:
    1) Stop using your credit cards!
    2) Cut up all of your credit cards.

    If you feel that you need something to fall back on for an EMERGENCY, then freeze one credit card in a freezer bag of water and leave it there.

    I don’t know if you want to consolidate your debt or what, but you should look into talking to a debt management agency or a credit counselor. Look for an organization that is a non -profit because they won’t try to make money off from you.

    You’re smart to try to deal with it now before it gets worse.

    Good luck!

  7. Reply
    June 29, 2011 at 9:04 pm

    Get a second job, decrease your spending, set a budget and stop buying crap that you don’t need.

  8. Reply
    June 29, 2011 at 9:04 pm

    Stop living the high life and get rid of stuff you don’t absolutely need. And get rid of nice things you have just for vanity, such as your big car payment, get something that runs but that is dirt cheap. Stop eating out, and don’t even go into a store with your wallet! Then if you see something you want, you can’t buy it and if you really truly need it you can go back and get it some other time after you have thought about the purchase.

  9. Reply
    farrell h
    June 29, 2011 at 9:13 pm

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