NEW~NEEDS HELP!

iVillage Member
Registered: 04-15-2003
NEW~NEEDS HELP!
3
Wed, 06-04-2003 - 3:30pm
Hello,

I am normally a lurker but I decided to post. Here is my situation, I have alot of debt, I really don't know how much right now ( I need to do that ). Probably about 20,000. I am pregnant with my first child and am due in November, I would like to get some of the debt paid off before the baby arrives. I'll admit I have been irresponsible with my debt in the past, now I know I need to "grwo up" since I am becoming a mother. So, for these next 6 months I am going to work on cutting my debt down. Does anyone have any good suggestions on how I can do this? Without stressing myself out? Any help would be greatful.

Thanks,

Rebecca

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Wed, 06-04-2003 - 7:19pm
Hi Rebecca - the first step is to write down all of your debts - accounts, amounts, interest rates, minimum payments, etc. You really *have* to know how much you owe to whom.

Next step is to pick an account and target it for pay off. Everyone else gets only the minimum payment as you put ALL of your extra money to that account you've selected. Conventional wisdom says choose the acct with the highest interest rate, but many of us choose the acct with the lowest balance so that we feel a sense of accomplishment much faster.

Anoter thing you can do is call your cc companies and request a lower interest rate - sometimes they'll work with you, and sometimes they won't. If you get offers in the mail for low interest cards whereby you can consolidate all or much of your debt to one card with a low rate, some people find that helpful (provided, of course, you cut up/cancel the cards you're emptying).

Definitely read these boards - they're full of great information. I also encourage you to check out the Snowflaking Challenge that this board is hosting!

All my best - and congrats on the upcoming birth!

Danni

All my best,
Danni

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Wed, 06-04-2003 - 7:20pm
Also - you might want to check out Mary Hunt's book Debt Proof Living - many of us have found it very helpful.

Danni

All my best,
Danni

Avatar for noahs_mommy2007
iVillage Member
Registered: 04-17-2003
Fri, 06-06-2003 - 12:42pm
Another thing you could do is call your creditor's and see if any of them will let you pay a percentage of the balance all at once and have them write off the rest. I have had two credit card companies offer this to me and it has saved me some money. I owed about $350 on a gas card and they called and offered me the option of paying $220 and I took it. They even let me divide that $220 into two payments. This saved me $130. Another company called me yesterday and offered to let me pay 70% of my $800 balance and write off the rest. Give this a shot and it might help you get rid of some of the debt quickly. Also, if you need extra cash, have a yard sale or sell some stuff to a resale shop. You might have some stuff around the house that you don't really need. You could make some money and have more room for the baby.