What is the fastest way to get out of dept without filing bankruptcy?

Additional Details
I forgot to mention that I already work well over 40 hours a week, am a full time student, and have a fiance.

You're looking for the FASTEST way? Sounds like you want to rebuild or maintain your credit rating which filing bankruptcy would greatly damage.

This will take a combination of methods!
1) Credit Counseling.
2) Really frugal living.
3) aggressive payments.

1) I recommend calling one of the non-profit credit counseling outfits...you choose one. They will do what it takes to get your payments to a minimum. These no longer damage your credit appreciably (they used to). I guess the credit scoring agencies (transunion, equifax and experian) appreciate the fact that you're not declaring bankruptcy!

2) The really frugal living means not only tearing up your credit cards, not incurring or increasing new debt, etc. but ALSO cutting out what you do have that you don't need to survive *right now*. Drop non-essential services like cable, broadband, cellphone, daily paper, etc. if you don't need them for work. The reason for this is that it will allow you to do step number 3 better...

3) Make _REALLY_ aggressive payments... big enough to hurt a little. When you do this after the credit counseling folks get your payments down you can really do some serious disaster recovery to your finances. If you have something to sell (that isn't lien property or mortgaged) you might want to consider some quick cash to get the debt reduced fast.

If you have a financed car, you might want to sell it (even for less than you owe) in order to buy and own a used vehicle (you still have to get to work!!) that would do just as well (you'll save on insurance too).

To help preserve your credit, contact all the agencies that you owe and tell them of your problem and let them know that you have overextended yourself and you're going to continue payments on the lowest of your bills and can they see about them getting their payments lower before you inevitably file for bankruptcy?

Get a part-time job (if it makes sense) This creates extra money to pay bills and leaves less time to spend it. It doesn't make sense if you have to hire a sitter that costs almost as much as you can make part-time or if you have to drive so far that you spend your paycheck on gas just to show up.

Once you get into the swing of doing this, your debt will disappear...once it's gone...keep doing it for a little while and build up your savings. Hang on to your savings (which will become your investments) and then start reading books by Suze Orman. She's a really no-nonsense person with solid ideas (albeit overly opinionated) on how to get and keep your finances together.

Best of luck. You're embarking on a most worthy endeavor!

Go get the book "Total Money Makeover" by Dave Ramsey. You can find it at the library - so no money spent. Also since you have internet access, google him and go to his website. You can listen to his radio program for free.

There are hundreds of thousands of his listeners who have gotten out of debt and saved money and are totally DEBT FREE after following his program. Just do it.

DO NOT COMMIT Bankruptcy before you try this out - you will regret it for more than 10 years!

Good Luck,
:> earthmom

FIRST OFF YOU DON'T NEED TO MAKE A PAYMENT TO A CREDIT COUNCELING AGENCY, THATS JUST DUMB. Start by paying off your smallest bill and working up from there. Pay the minimum ONLY on all your other debt until you wipe out the smallest. When you've paid off a credit card, TAKE IT OUT OF YOUR WALLET and hide it in a drawer or cut it up if you can't deal with NOT using it. If your company offers direct deposit, USE IT. That way you never even touch the cash so you'll be less likely to spend it. Write down ALL you monthly expenses and determine where you can cut back for a while. Cut out the cell, the high speed Internet, cut out going out for a month. There are many areas people can cut back they just don't want to so they cry about how broke they are. Use your computer to set up automatic bill payments and open a savings account you can link to your checking account for backup on overdraft protection. Keep as many open lines of credit as possible with nothing on them. By improving your FICO score your debt will eventually cost you less money. The higher the score the better rates you get. I have only 2 credit cards with $10,000 and $25,000 credit limits but I also have a FICO score of 824 and I think that places me in the top 10% as far as credit risk. I'm not rich at all, but I refuse to ever pay a bill late. I regularly get offered lines of credit of as much as $300,000.00 but I could never make the payment on that big of a debt. I guess THEY think I'm rich because they can buy your credit rating from any of the reporting agencies. Go on the web site http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm for your FREE credit reports from the big three credit reporting agencies. You can do this every year. You may also want to pay for your FICO score because thatâ€™s not part of the FTC's required free report. Fix anything that you can and follow any of their recommendations. Spending seven years paying off your debt is better than being a lousy credit risk and paying higher rates for years and years.

Steal some money and pay your bills.
or
Credit counseling might help but some of them can't be trusted.
They consolidate your bills and get you one lower payment per month. It's not really a fast way to do it but it takes the pressure off you and relieves the stress.

Pay your bills and stop charging new stuff. Live within your means.

Set up monthly payment plans and stick to it. Ask your creditors if they are willing to settle for a percentage of what is owed. A lot will say yes. They would rather get something than have to keep hounding you for years and get nothing.

Not to incur it in the first place...

Poor guy...(no pun intended)...but I feel for you. I have been there and am reaping the repercussions of it!!! There is no simple or fast answer to severe debt issues really...but in hind sight, the advice that was given to my husband and I after we lost everything, was to have called each debtor and set up a reasonable payment arrangement with them in hopes that they will compromise and work with you. Or, if you haven't done this already call CCCS, consumer credit counseling services, and they can waive the fees and so forth that come with credit cards and stuff. You will have to cut them up and stop using credit until you are in the clear. Outside of these options, Bankruptcy is it. But do try CCCS first, if they can't even do anything for you than try calling your debtors yourself. Last resort for Bankruptcy. We created our own debt problems and that is the way ALL debtors approach the issue so don't be shocked when there is no sympathy from them... Good luck and my prayers will be with you. Don't forget humor while you are going through this, it helps.

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