I want out of debt

[jmartinez1895]

I guess I just needed a place to vent and get some support. After a 6 year custody battle with my ex and a child who was in and out of the hospitals for years we are looking at almost 50k in debt. We are a one income family ( I can not work due to the health of my youngest). We are doing ok, we are pay check to pay check but we are no longer having to live on credit cards just to have a meal. We can now pay a little extra on a card and still have a little bit of cash left at the end of the month ( maybe like 20 bucks, but it's better than nothing). I have read Ramsey and a few others. Because my hubby got an "extra" check this month I have paid off two small cards and will snowball that with a different one. We currently have 8 cards and 2 loans ( not including the house). If I stick to my plan we should be out of debt in 4 years and then we can pay the house off in 10. It just feels like such a long row to hoe and sometimes I don;t see the light at the end of this tunnel.
Has anyone else here had success with getting out of major debt without bankruptcy or consolidation?

 

[CowboyCO]

I guess I just needed a place to vent and get some support. After a 6 year custody battle with my ex and a child who was in and out of the hospitals for years we are looking at almost 50k in debt. We are a one income family ( I can not work due to the health of my youngest). We are doing ok, we are pay check to pay check but we are no longer having to live on credit cards just to have a meal. We can now pay a little extra on a card and still have a little bit of cash left at the end of the month ( maybe like 20 bucks, but it's better than nothing). I have read Ramsey and a few others. Because my hubby got an "extra" check this month I have paid off two small cards and will snowball that with a different one. We currently have 8 cards and 2 loans ( not including the house). If I stick to my plan we should be out of debt in 4 years and then we can pay the house off in 10. It just feels like such a long row to hoe and sometimes I don;t see the light at the end of this tunnel.
Has anyone else here had success with getting out of major debt without bankruptcy or consolidation?

Bankruptcy is a major step and I can't recommend it unless you simply cannot pay your bills, which it sounds like you can. If you are following Dave Ramsey, then you know that you need to find ways to earn or get more money and out that towards your snowball. A consolidation will help if you can substantially lower your interest rate, but whatever you, do, do not do it with your home. If your daughter's health (or anyone else's) takes a turn for the worse and you end up needing to file bankruptcy, you want to keep that $50,000 as unsecured debt.

It is a long road - we've been working on it for two years and have taken $60,000 down to less than $10,000.

One other stategy you can employ, if you come into one-time money (like a tax return), is to negotiate a settllement on your credit card debt. To do this, though, you will have to intentionally get 90 days behind on the payments, otherwise they'll never negotiate. It will hurt your credit, but if your goal is to get out of debt and not acquire new debt, then it can be a good strategy. I settled a couple of cards for 50 cents on the dollar, so it can be done.

Good luck -- you can do it!

 

[jmartinez1895]

Thanks. I'm so happy to hear that you got so much paid off so fast. We have no plans on bankruptcy ( unless we can no longer put food on the table). Thanks for the support. I hope to hear more positive stories that will help motivate me.

 

[moonpie85]

Apprisen is a wonderful company that has been around like 50 plus years. We use them and have been extremely happy, our credit hasn't taken a single hit from the experience. I went into the process refusing to believe they were legit and convinced we would regret it. I had heard so many horror stories of those types of services. I now highly recommend them. Still don't trust the other companies

 

[2disneyboys]

I didn't have to get out of a lot of debt (we owed less than $5,000 on everything but our house) but following Dave's plan we did quickly pay off that debt (other than our house) and start accumulating savings like we should have had in place. We are still working on that, but the whole process has changed how we view money.

I mainly just wanted to give you encouragement and wish you luck. Regardless of which system (or parts of a system) you use, just being aware and making choices to improve your situation is a step in the right direction. It will be a hard row to hoe, but in just a few short years, you will be in a much more peaceful place, and have the pride of knowing that you got you there and you did it by holding up your end of your obligations. Its very empowering.

Best of Luck to you!

 

[eliza61]

I guess I just needed a place to vent and get some support. After a 6 year custody battle with my ex and a child who was in and out of the hospitals for years we are looking at almost 50k in debt. We are a one income family ( I can not work due to the health of my youngest). We are doing ok, we are pay check to pay check but we are no longer having to live on credit cards just to have a meal. We can now pay a little extra on a card and still have a little bit of cash left at the end of the month ( maybe like 20 bucks, but it's better than nothing). I have read Ramsey and a few others. Because my hubby got an "extra" check this month I have paid off two small cards and will snowball that with a different one. We currently have 8 cards and 2 loans ( not including the house). If I stick to my plan we should be out of debt in 4 years and then we can pay the house off in 10. It just feels like such a long row to hoe and sometimes I don;t see the light at the end of this tunnel.
Has anyone else here had success with getting out of major debt without bankruptcy or consolidation?

Hang in there. You are getting out of debt. You said it yourself, a lot of this came from a 6 year battle with ex.

I know it feels like years is a long time but it really isn't!!

Good luck and look at your accomplishments (no matter how small) rather than how far you have to go.

 

[HeatherC]

You could also sell stuff on Craigslist to generate some extra cash. Check your closets, basement, attic, etc. It can really add up.

Maybe also try to shave $10-$15 a week off your food bill and put that money towards the cards.

If your credit is good, you could get a card for 0 percent and transfer a small amount toi it and pay it off as fast as you can while you aren't accruing interest on it. Just be super careful to pay it before the introductory period ends or you will get nailed.

Another possibility is to go through all your bills. Maybe get a higher deductible on insurance to cut your premiums, re-negotiate phone, cable, trash pickup, etc. This can save a lot each month you can then put the savings towards your debt.

Even look into refinancing if the rates are more than 1 percentage point lower than your current rate. Can save several hundered a month if it works out that can be diverted right towards your debt.

Best of luck to you!

 

[LJSquishy]

Good for you! You really deserve a pat on the back for taking that extra money and applying it toward your debt. I know it is hard to do that, my parents gave us a check for $250 for Christmas and thought we might want to put it toward one of the Disney tours or spend it on something fun, but as soon as it was deposited into our account, we put it all toward our credit card that has our Disney World trip on it. When we booked Disney, they made it sound like they could raise prices on the entire package if it wasn't paid in full right away so we charged it (not smart).

I just finished reading Dave Ramsey's Total Money Makeover and we will be implementing his plan.

Keep up the good work, you are making progress!

 

[Karenj2]

First of all, congratulations on going the "hard" way and paying off your debt! Four years isn't too long considering it took you 6 years to get into debt... And you could do some work-at-home jobs, even the QuickRewards (above) type of thing will get you some GCs that you can use towards stuff that you'd normally pay cash for (then put that cash towards your debt).

The snowball payoff method is called that because it'll start to really - well, snowball! And as you're paying off your debt, and seeing it disappear, you'll be motivated to find more ways to have it disappear even quicker!

Don't forget to save up $1k for EMERGENCIES first, even if it means paying off your other debts slower. Having an emergency hit now would not only be a blow to your finances, but also to your momentum.

Good luck! I know this probably doesn't mean much, but I'm really proud of you! (My sister has a similar amount of debt due to ex-husband and their "gimmie now" mentality, and she's really not trying very hard to get out of debt, so seeing someone really buckle down and go at it with "gazelle intensity" is awesome!!)

 

[eyor44]

Congrats on taking the first step. It is a long road and you will become frustrated at times, but just take a few deep breaths and everything will work out. You'll get there.

Do you use coupons for shopping? Every little bit helps.

 

[furb & dez]

Congrats, and good luck! Another poster indicated to save an emergency fund first, and I totally agree with that - you never know when you'll be blindsided with something.

Once you are out of debt, remember that it was spending more than you earn that got you there... so don't do it again!

 

[Marionnette]

Once you are out of debt, remember that it was spending more than you earn that got you there... so don't do it again!

Yes, the OP was spending more than she was earning. But she also had a child who was in and out of the hospital frequently. I dunno, but maybe...just maybe...that contributed to the debt just a teensy bit. Dontcha agree?

OP, keep at it. Those 4 years may seem like forever when you have debt hanging over your head but it will go by faster than you're thinking. I have a lot of admiration for people who suck it up and pay off their debts instead of declaring bankruptcy and then going out and racking up debt again.

You GO, girl!

 

[jmartinez1895]

Yes, the OP was spending more than she was earning. But she also had a child who was in and out of the hospital frequently. I dunno, but maybe...just maybe...that contributed to the debt just a teensy bit. Dontcha agree?

OP, keep at it. Those 4 years may seem like forever when you have debt hanging over your head but it will go by faster than you're thinking. I have a lot of admiration for people who suck it up and pay off their debts instead of declaring bankruptcy and then going out and racking up debt again.

You GO, girl!

The hospital fees, medications where very hefty bills. While we ( my hubby and I) chose to take my ex to court, we had no choice in the medical situation. We are not big spenders running out to buy the newest gadget. We did splurge on a trip to Disney, but after looking at hospital and court room walls we really needed a break.

Thanks so much for all of the support and advice from you all.

 

[bumbershoot]

Because my hubby got an "extra" check this month I have paid off two small cards and will snowball that with a different one.

Yay for you, you are already doing it!!!!!

4 years feels long, but at the end of it, you'll have so much! And I bet it won't take you that long; you'll probably start enjoying it so much you'll get more done.

Yes, the OP was spending more than she was earning. But she also had a child who was in and out of the hospital frequently. I dunno, but maybe...just maybe...that contributed to the debt just a teensy bit. Dontcha agree?

I agree. That and lawyers. Not things one usually WANTS to spend money on.

 

[indimom]

Good for you!!
It's looks like a long road now, but you'll be surprised how fast it goes. And you may also be surprised how you shave months off the schedule you already have set. When you really get serious about it, you start finding more and more ways to fund the repayment. And as the number of bills you are paying on decreases, you start to see the light at the end of the tunnel.

Unsolicited advice, feel free to disregard:
I know your little one has health issues, but if your hubby can act as caregiver in his off-work hours, you might be able to add 10-20 hours a week at a part time job and put all that on the bills. That could potentially knock a year off the repayment schedule. (I don't know what you're dealing with medically or how many hours your hubby is currently working, but thought I'd throw it out there as a possibility.)

Good Luck!

 

[ilovemk76]

I guess I just needed a place to vent and get some support. After a 6 year custody battle with my ex and a child who was in and out of the hospitals for years we are looking at almost 50k in debt. We are a one income family ( I can not work due to the health of my youngest). We are doing ok, we are pay check to pay check but we are no longer having to live on credit cards just to have a meal. We can now pay a little extra on a card and still have a little bit of cash left at the end of the month ( maybe like 20 bucks, but it's better than nothing). I have read Ramsey and a few others. Because my hubby got an "extra" check this month I have paid off two small cards and will snowball that with a different one. We currently have 8 cards and 2 loans ( not including the house). If I stick to my plan we should be out of debt in 4 years and then we can pay the house off in 10. It just feels like such a long row to hoe and sometimes I don;t see the light at the end of this tunnel.
Has anyone else here had success with getting out of major debt without bankruptcy or consolidation?

Can you work once your DH gets home from work? Evenings and weekends. $100/week is 10% of your debt in just one year.

You need to cut out all vacations until the debt it under control. You can do day trips to the beach, as an example, but Disney is out of the picture right now.

Have you negotiated with the hospital and doctors to get on a payment plan you can afford.

 

[englishteacha]

Good for you for getting out of debt! Every little bit helps. If getting more income isn't possible right now, how can you save money to put towards the debt? A little extra here and there DO add up, I promise.

 

[bumbershoot]

You need to cut out all vacations until the debt it under control. You can do day trips to the beach, as an example, but Disney is out of the picture right now.

I'm certain she knows that. There are no future trips in her signature. She explained the '11 trip as being a "whew, out of the hospital" thing. The picture in her sig is of a young child, whose problems might not have started for their '09 trip so they might not have taken any trips but the one since it all started.

When a person comes in saying they've already started (two debts done!) and they want to be out of debt, they've read the main book suggested to people, and tells about the small amount sthey are already able to put as extra towards the debts...I just really see the need to chastise her and warn about future trips.

If it were me, I'd be really angry at responses like that. (a million years ago, our now-gone cat was having digestive health problems, was really honest and open about what was going on on a message board I was on at the time, what we had been doing, why what we had been doing was WRONG, and BEGGING for information on what on earth to do next b/c the vet wasn't helping, and the ONLY response I got was someone yelling at me for what we had been doing...utterly useless and not helpful in any way, shape, or form) I just feel she needs a cheerleader, not a browbeater, especially when she hasn't said anything about future trips at all. (would be a bit different if she had future trips in her sig)

 

[kelleigh1]

I haven't read the other posts, but I am happy to report that just this year, I finished paying off all of my debts! It took a long time, but I did it. On my own, without debt consolidation and without filing for bankruptcy. It can be done!!!

 

[crisi]

Good luck. It will feel great when you are done.

I know a lot of people who have done Ramsey's method get things paid off faster than anticipated because once they get into it, they get addicted - and they start living REALLY cheaply in order to have more success.

I did it years ago when I got divorced (which was 20 years ago now). Even managed to pay things down EARLY. It was tough, it took a lot of discipline, and I spent one Winter freezing my back end off in my own home with multiple sweaters on to keep my heat bill low, and I remember making one can of soup last two days (it was just me) - but I did it.