I'm 13,000 in debt 3 credit cards, a cell phone bill, doctor bill, school loans...do i go bankrupt?

Avoid it as much as you can. If you can't afford your payments as they are set up right now, I recommend contacting a credit counseling company.

Good luck.

im in the same mess.... almost exactly..

Im dont think so but my finaces are different from yours... im paying all of mine. and only making 30k a year!

good luck

No....this is not enough to file for Chapter 7....school loans cannot be discharged anyway in a Chapter 7 BK filing....

Dave Ramsey promotes completely eliminating every form of credit. This is not practical and will land you right back where you are today in a few years. With no credit, you will have no or very low credit scores, and when you want to buy a house or end up with an emergency where you need credit, your only options will carry very high interest and horrible terms.

You need to learn finance management - not credit elimination.

As far as bankruptcy goes, you're still going to have to repay all or a large part of your debt even if you file bankruptcy. You want to try to negotiate with your creditors before bankruptcy and make it clear that you have very little to loose by filing bankruptcy so it's in their best interest to work with you now to keep you from having to file bankruptcy.

Bankruptcy is no longer the solution it once was.

Under changes in Bankruptcy law passed by Congress and signed by President Bush, it is much harder to discharge credit card debt and Student Loans are not dischargeable either.

Furthermore, going bankrupt (or resorting to some forms of credit counseling) will hurt your credit more, stay on your credit report up to 10 years and result in your credit cards being cancelled by the creditors.

This means you will lose your ability to use them, which could create a problem for you in the future.

While some reputable credit restoration services have a track record of successfully removing bankruptcies from credit reports far earlier, going bankrupt will virtually force you to engage one.

According to the FTC it is legally possible for you to do the credit restoration yourself. However, it is not a matter of writing a simple letter and you will probably need professional help to remove the bankruptcy.

Avoid it if possible.

I agree with Rick B that you should prioritize your credit cards and direct every extra penny you have to the lowest principal balance card and pay the minimums on the other two.

If you can work out reduced payments with the medical creditors, do not keep the extra money in your pocket or spend it frivolously.

Use as much of that money as possible to eliminate the credit card debt.

As Rick B said, once you have eliminated the smallest card, move on to the next smallest and repeat the process.

The only area on this point where I might differ from Rick B is that, after paying off the smallest balance card, I would look to bring the other two card balances under 30% of the authorized limit.

Attack the next smallest first, but donâ€™t pay it off completely. Once it gets below that 30% threshold, go to the third card and do the same thing.

After the second and third cards are each below that 30% threshold, focus your extra money on the highest interest rate card and bring that balance down to 0 first, then move on the remaining card.

By paying off the highest rate card first, you will save yourself more money in interest than focusing simply on the lower balance card. Bringing the two cards below the 30% threshold will help your credit score improve.

Some of the creditors, such as doctors, may accept a compromise settlement and a payment plan.

If it is not likely that your medical expenses will continue accruing, you should try to work something out with the medical creditors.

Whatever you do, get the arrangement reduced to writing. That way you can demonstrate your compliance and force them to honor their side of the agreement, if necessary.

As for the cell phone bill, consider getting one of the flat rate plans some companies are offering.

You may have to downgrade your phone and your plan may not have all the bells and whistles, but it will control the cost.

You may also be eligible for a forbearance on the student loans.

This would not eliminate the debt, but it could postpone payments for up to a year. That would give you time to straighten out the credit cards and medical bills. You should check this out.

There are also companies that do a consolidation/refinance of student loans that might be able to help you extend the term of the student loans to reduce your payments to a more manageable level.

After the dust has settled, you should be able to remove many of the derogatory listings from your credit report.

If you feel the need for help, there are reputable credit restoration companies out there who could help.

If you go that route, check out the credit restoration company. You will want to make sure it has a track record of success in permanently and legally removing the types of derogatory listings that appear on your report.

Hope this helps.

It depends upon your income.

$13000 in debt is not nearly enough to be approved for bankruptcy.

Of course not.

Call all of them and work out a payment plan and try to get your interest lowered or stopped.

Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.

You probably need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control. Take a sandwich for lunch. Cancel the gym membership.

Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.

Go to the library and get "The Total Money Makeover". Read it and follow it carefully.

Go check out Dave's website as well.
www.DaveRamsey.com

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