Getting rid of debt?

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I see tons of advertisements for credit card debt by refinancing your mortgage / loan free. The problem is, I do not own a car or a house, I work part time, and I am a full time student. Is it to do business, consolidating debt, etc. for people like me?

  1. Reply
    mister ed
    January 25, 2011 at 8:18 am

    not likely — your have nothing of value — your best best bet is to downsize you life and quick using credit cards!!!!

  2. Reply
    January 25, 2011 at 9:17 am

    There are debt consolidation companies that will work with you, but I strongly recommend against using them. As a general rule, they are not doing anything that you cannot do on your own, and they are charging you for that “service”.

    Here are a few things that you can do to get your debt down to a manageable level.
    1. Stop spending money on stuff you do not need. A large coffee a day is around $ 1.50 to $ 2.00, that’s around $ 45 -$ 60 a month. Same for bottled water, cell phone service, renting or buying videos, games, CDs, etc… Dedicate that extra money to paying down the credit card with the highest interest.
    2. Set aside some money every month to pay a significant extra amount on one card, the one with the highest interest. Even if it is only $ 5, it is TONS better then just paying the minimum. As you reduce what you owe, the amount you pay in interest every month will go down allowing you to pay off debt faster.
    3. if you are still having difficulty making the payments, for whatever reason, call the credit card companies. Tell them your situation. They would rather work with you, then send the account to collections. There is a lot that they can do, like reducing your interest rate, or allowing you to skip a month or two without penalty.

    Best of luck.

  3. Reply
    January 25, 2011 at 10:13 am

    I agree with the above. Get rid of your highest interest rate debt as fast as possible. Bang it every chance you get and then on to the next one.
    I was in the same boat once. I owned things though and took a personal low interest loan and payed off all of my high interest loans with it. Saved a ton of money and time that allowed me to get back on my feet.

  4. Reply
    January 25, 2011 at 11:08 am

    You can only get rid of debt by paying it not by borrowing at higher or lower interest rates. You need to get a plan for repayment not consolidating … does it matter if you pay one bill a month or twenty??? Try to reduce the interest rates you are paying now. Try to pay more than the minimums. Try to pay the smallest debts in full first and then apply that amount to the larger debts and eventually you will get RID of the debt. Now, take a look at your expenses and cut out or cut back on things you seriously don’t want or need until you can afford it. You don’t need credit cards so start today to pay cash for what you need, postpone buying what you want, and treat yourself every now and then with what you CAN afford.

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