January 19, 2009
How much do you owe all together? And how do you do to lower your debt significantly?
Lillian Angelina due March 24! asked:
I’m going crazy. Four years ago I thought I was buried in debt because I had a credit card balance of $2500. Today it is $9k and a sunsidized student loan of $2750. I had no car payment before, I put my used car on a credit card. Now my husband bought me a new car and I just pay the insurance. He also owes 10k himself. With a part time job that only pays for school I can’t make big payments, perhaps when I graduate in 6 mos I can have a real job and pay more. What’s the best way to reduce my debt? And out of curiosity, how much do you owe?
I’m going crazy. Four years ago I thought I was buried in debt because I had a credit card balance of $2500. Today it is $9k and a sunsidized student loan of $2750. I had no car payment before, I put my used car on a credit card. Now my husband bought me a new car and I just pay the insurance. He also owes 10k himself. With a part time job that only pays for school I can’t make big payments, perhaps when I graduate in 6 mos I can have a real job and pay more. What’s the best way to reduce my debt? And out of curiosity, how much do you owe?
Filed under 4429 by
Leave a Comment
You must be logged in to comment
Comments on How much do you owe all together? And how do you do to lower your debt significantly? »
20,000. I’m really in trouble.
I am debt free except for my mortgage of $48,000. But it wasn’t always that way. At one time, my husband and I were over $80,000 in debt plus a big mortgage.
In order to reduce your debt, you have to change your thinking about what your “needs” vs. “wants” are.
Transportation is a need, but a new car is not.
Food is a need, but convenience food, fast food and other restaurant food is not.
Clothing is a need, but new clothes are not.
Education is a need, but be careful where you spend your money. Community college counts just as much as private university.
My car recently broke down and I am walking and taking the bus until I have enough cash to fix it or buy another used car. One of the reasons I live where I do is so that I can take the bus.
You have choices! Make better choices about spending and you can be debt free, too.
Let’s see…
$160000 on my mortgage
$12000 on my Tahoe
$4000 on my credit cards
Current Debts
56K Investment Loan
3K Credit Cards (To be paid off the 10th)
Easiest way to get out of debt
1. Stop using credit cards COMPLETELY
2. Make a budget and stick to it
3. Lower your current lifestyle, until you have lowered your debts
4. Tackle debts with highest interest rates first and pay min on the others.
Debt free, but I’ve been there.
Stop using credit cards. Pick one card and pay a little more towards it. Do you have the option of transferring your balance to a 0% card for x amount of months and paying off a card that way? (I’ve down this in the past.)
Try to budget your money better. Maybe you’re spending money on stuff you really don’t need..use that money towards your credit card. Cut corners in your lives to bring that balance down.
What did you do with the old car? Did you sell it and apply what you got to your credit cards?
Try his site for tips