How Do I get myself out of debt??

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I have a matter my oldest son ran up a major credit card bill, my husbands car dealership has gone out of business, a tornado hit our house, i am currently pregnant with a child who will have severe back problems, my second son dropped out of high school to help with bills and the business. I have already dipped into my childs 20000 dollar college fund and we are in debt up to our eyeballs with hospital bills, credit card bills, backed up insurance, and fixing our home. How can we get out of this mess!?

8 Comments
  1. Reply
    frogbfound
    November 10, 2011 at 3:55 am

    try consumer credit counseling service http://www.cccsintl.org/

  2. Reply
    m b
    November 10, 2011 at 4:54 am

    The basic rule for pulling out of debt is to pay off high intrest bills. I know your home was hit by a tornado, but is it possible to get some home equity from it? Typically a home equity loan has intrest far lower than credit cards. Also consider disputing the unauthorized charges your son made on your credit card. Good luck with this. It may sound desperate but you will be surprised how well you will fare through it.

  3. Reply
    batwanda
    November 10, 2011 at 5:40 am

    First, resign as care taker of the Universe. What I didn’t hear is what your husband is doing about it. He needs a job, and as tough as that is, he needs to step up to the plate so the PG wife doesnt need to. God Bless your son for quiting school to help out, however he is trading his financial future for yours. Make him go back to school and work at night.
    Next, let go of what you can not change. No creditor wakes up feeling great because they know you cried all night long about your bills.
    Next, tell all debt collectors you only want to be contacted by the mail. Get them to quit calling, that will relieve some stress which is what you need.
    If your oldest son ran up the card, I assume it is in your name. IF it is not, then do not worry about it, it is his credit, his life.

    First thing is to reduce the stress though.
    Then, get rid of that which is a monthly sucking of the income. Internet… I probably woudl keep.
    CAble tV, I have not had in 15 years, and I can afford it. It is a time and money sucker.
    Any other subscriptions to magazines, or the lawn guy?
    Out.
    Then, fix one thing at a time, not all at the same time.
    Husbands job is gone….husband, go get a new job, you must make half as much at least as old job. You do it. I can not, thank you and I expect this to be done in a week. I do not care if you are washing dishes, thank kyou I love you and we will talk again later.
    Tornado hit the house, insurance is not cooperating. Senator, this is your constituatnt. Do I have a story for you, husband jobless, tornado, no insurance, im pg. Can you move the insurance folks along quicker? or do I have to call the tv station and let them know ieven senator x could not help.
    PG with severe back problems? DO I apply for SS for this child now since there isa 2 year wait list? Apply for state medical now.
    Son, go back to school work weekends and evenings to help. Thank you for the help but i dont want you to grow up to have yoru back against the wall like dad and I. You will if you get a ged. Back to school you go.
    College fund. hmmm Put 10K into a cd, use the other 10K and do not even think about buying something frivolous.
    Hospital bills, call them and negotiate them, say, they will be in collection anyway, lets apply for help hospital help me to get forgiven.
    credit cards, same thing
    fixing the home? ask friends family and neighbors to help.
    have a chillli feed day and just openly say< I really need help. Good Luck

  4. Reply
    theosharatos
    November 10, 2011 at 6:16 am

    Wow! I found the only way for us to get out of debt is to work for ourselves at home and earn a substantial amount of money. Something we can’t do working for others. Jennifer

  5. Reply
    Clix
    November 10, 2011 at 6:54 am

    I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.

  6. Reply
    STEVEN F
    November 10, 2011 at 6:56 am

    batwanda earned a ‘thumbs up from me within 8 words. The rest of the answer was good to. As for the college fund, until you clean up everything else, your kids are on their own for college. They can get a job to pay for a state school. Whatever is left of the FORMER college fund just became your emergency fund. As for pregnancy related costs, start interviewing hospitals and get them to compete for your business. This is probably the ONLY time people actually WANT to visit a hospital. If you offer CASH up front (from the ex-college fund), you should receive a significant discount. I also recommend the “Total Money Makeover” by Dave Ramsey. It won’t be easy, but it can be done. As for credit card bills, even if they sue, which they rarely do, they can’t collect if there is nothing to collect. Until you clean up the other problems, IGNORE the credit cards. Don’t even open the bills.

  7. Reply
    CALIFORNIA GOLD
    November 10, 2011 at 7:25 am

    You actually have many options depending on other factors. You have substantial hardships and should be eligible for reduced payoffs or settlements. You also have cash available and possibly home equity. I recommend you check out the source website and their free evaluation form. Good luck.

  8. Reply
    Hima K
    November 10, 2011 at 7:48 am

    I suggest you to join a debt settlement company who will negotiate with your creditors and reduce your principal debt by around 30% to 70% depending on your credit companies.
    You will be debt free within 36 months by making low monthly payments. As there are no hidden costs,penalties or upfront fees associated with monthly payments, they will start working on your debt immediately after you join their program.
    Check this company for more information. They have helped me out with the same unsecured debt problem.

    http://www.debtfreeafterall.com

    Good Luck

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