JJ
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I was in the exact same situation at 20, four years ago, and if someone had given me this advice then, I could've paid it off in a year or two, so here goes:
First, take a REALLY careful look at what you spend. How big is your grocery bill? Searching for cheap recipes instead of ones with pricey ingredients and not eating out can get you a hundred extra bucks a month or more. You could reduce your cell phone plan, raise your car insurance deductible, whatever you spend money on, try and cut it down.
Second, CALL YOUR CREDITORS. Every single one. Tell them you're having difficulty paying and ask for a lower interest rate. It's unpleasant and a little embarassing, but it only takes five minutes or so and it can make a HUGE difference.
You should make a list of your creditors, minimum payment amounts and the interest rate your debt is at for each. Also calculate how much money you don't need each month. You're really going to have to live tight to raise that amount, but you'll need to.
Now, whatever's left out of that money you don't need after the minimum payments are paid, you should apply to the debt with the highest interest. Keep paying everything you have left on that one until it's gone, then move to the second highest (with more money to put to it!).
This is the fastest way to pay down debt and trust me, I've really been through it with debt. You might also trying asking a family member for a loan. The interest rate will be WAY lower than your creditors (if there is one) and you can pay the debt off without penalties. Your family memebr may even let you pay them back after you're out of school.
Most importantly though, DO NOT let this debt force you out of school and DO NOT CREATE ANY MORE DEBT!! |
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Ann Marie J
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Go and get a book called Your Money or Your Life.
They have a website too...
http://www.yourmoneyoryourlife.org/ |
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misslilprincess33
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You can go to your local bank... what they will do for you is put all your debts together for you and basically pay them off, you will then just have to pay them a monthly fee to pay them... its better than being young, in debt and broke with bad credit |
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Cherry Blue Berry
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you can try talking to the company you owe money to and tell them your situation. They may be willing to help. or you can speak with a financial adviser and they may be able to give you advise. Good Luck.
OR you can creat a budget plan, keep track of how much you spend on a daily base and where you spend the money. And then ask your self where you can reduce your spendings. That way you will have extra money to pay off your loans.
Do not fill bankrupcy because this will stay on your credit report and this will not look good when you apply for a loan when you want to start your business. |
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phkenphun
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this is a real hard one to answer, theres just so many ways out, depending on what your good for, you can consolidate, marry a rich guy, :-), or get a second and third job:-), tough to be in that position...... |
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Blue
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how long til u r 21 ? |
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006
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The only way to get out of debt is to have positive cash flow (money left over at the end of the month after bills are paid). There are 2 ways to do this:
1. Earn more
2. Spend less.
That's it. If you want more specific guidelines, make a list of all of your expenses for 2 weeks (one pay period). Total them up and subtract from your paycheck. The leftover is your cash flow, and should equal the change in your bank account. Then slash your expenses by cutting out what you don't need. Use the extra cash to pay down your debt. This means less eating out, less vacationing, less buying silly things, and buying in bulk and using coupons to save money. You could also get a better job or a 2nd job to increase your earnings, but usually its easier to slash expenses.
Good luck.
Edit: You don't want to file for bankruptcy because you'll need good credit to get a loan to start your business. |
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iveaquestion
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As people already said, best way is to work as hard as u can and earn money n pay the debt off.. bankruptcy is a short cut ..dont take that! coz it will have a long lasting effect on your history n mite hinder ur future opportunities.!
Just dont panic..make a list of your debt..total the money..make a plan..how much u need to work to pay off in your targeted time..be brave..fight it and fight it on ur own without taking shortcuts! |
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qaperson6859
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Consolidate all your loans with a bank or when you take out the loan to start your business take out some extra to pay off your others. That way it will be easier to pay off the loans if they are included in your long term business loan |
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JetDoc
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Talk to a Consumer Credit Counseling service. They can deal with companies you owe money to and reduce your monthly payments... But you will have to give up all of your credit cards and promise not to get into any more debt until you have satisfied your current obligations. |
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Susan Z
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Depends on what your debt is, if it is student loans consolidate them, If it's mainly unsecured loans you may want to declare bankruptcy, you would still have student loans, but would be able to get rid of the unsecured debt. It will give you a "fresh start" |
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Pink
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When you find out let me know! |
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max_rochny
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Just2, the best I think for you would begetting everything consolidated, or else go bankrupt. IN 2 years you will be clean. |
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eraymcd
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You have to pay more than the minimum for every credit card, every month. Also, pay off the smallest debt first, then work your way up to the largest debt (that's the easiest way to get rid of debt). Also, close all high-interest credit cards---those are the worst. It takes time, but be patient, and try not to charge anything on your credit cards (just use your checking account). |
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Aimi S
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im 18 and in serious debt also I left school at 16 and got a job making fairly good money in sales so when I turned 18 credit cards opened up to me and as I had a good job I ythought "why not?" any way circumstances have changed an i am now going back to college and have no way of paying my debts I have had debt agencies calling blah blah blah. If i was you i would look into setting up a debt managment plan which will reduce your outgoings and may help..if the debts are secured on a house basically your screwed but if not apart from giving you a bad credit score there is nothing more these companies can do so son't worry so much... |
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doodlesfl
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You don't say what type of debt you have.
If it's student loans, no . You have to pay them. If it's credit card debt then a consolidation company might be able to help you. Running your own business is a big risk and lots of money. I'd suggest getting a stable job and doing your business on the side. You can have benefits and a steady check as well as pay off loans. Good luck. Bad credit is no fun, it can stay with you forever and no one wants mommy and daddy co-signing for cars, homes, etc. down the road. |
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Nora
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go to an attorney and ask for settlement arrangement |
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Jerry Lee
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Try to return everything you can to get your money back.
Contact the people (organizations) you owe, and explain the situation. Attempt to negotiate a reduced debt, reduced interest, or friendlier repayment schedule.
Pay off the highest-interest debt first.
Try to avoid any "late-payment" penalties. |
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roxxygrrl13
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consolidate the debt to one credit card/low interest loan and make payments on time and don't use credit cards! make bankruptcy your last choice!! |
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baybluv101
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get one of those loans that pays off all your seperate debts and puts them into one. then you can do little things to minimaise your loan. cheaper shopping (supermarkets own brands e.g) going out less, this will give you more money to pay off your one loan the you must work out a personal way to earn some more money. |
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Chansey
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Work hard!!!! Save loads!.... Even if its not a REALLY high paying job youre in.. you should be able to put some money aside to clear some of the debt.
You could also sell your art!!! "Etsy" is a great website to sell arty things. |
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boogss03
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if you file bankruptcy you can forget about a business loan.you can try to contact the companies you owe and either work out payments or possibly a payoff of less than what you actually owe. |
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Andra J
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i, too, suggest bankruptcy - but b4 u do so, try getting in touch with a good debt counseling service that will help you to budget your funds properly after filing. it is much harder to file bankruptcy now than it was in the past as so many laws have been changed. learn from your mistakes and don't go this way again. also, if you can actually afford to pay some of the debt back (which will be determined by a court), you may not be able to file at all. is there a way u can consolidate your debts and have just one payment each month? you could reduce your bills AND increase your creditworthiness, not to mention your self esteem at the same time! whatever avenue you choose, good luck!! |
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Lisa D
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Be honest with whomever you owe money to. Let them know your situation and let them know you plan to pay, but it may take a while. I am in the same sort of situation and am now beginning to come out of it. Don't spend what you can't pay for with cash. |
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heyteach
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Try something like Consumer Credit Counseling agency and let them help you with your problems and prevent you from digging in deeper.
Remember for a business loan you will have to be a good credit risk--just out of school with no real work experience, debt, and young--no likelihood there. So you are right to retire your debt, can't do anything about your age, but make sure you get some REAL experience and hopefully some connections or you'll have to work for someone else until you can have something persuasive to do that company! |
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ktbug3335
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bancruptcy
or you could become a crack dealer |
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wlh1us
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2 jobs, lol sorry but it takes two incomes to make it anymore. use the other check each week or two to pay off your debt |
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Steve C
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You can file bankruptcy and eliminate all of your debt. |
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