Not sure where to start!

iVillage Member
Registered: 07-17-2008
Not sure where to start!
42
Thu, 07-17-2008 - 5:59pm

Hi, I am embarrassed to even share the amount of debt I am in! Most of it is credit cards. I have tried lowering the interest rates and not one of the companies I called was of any help. I can't even apply for credit cards with lower interest rates because I get refused which makes my credit score go down.


I have been paying down the cards but not fast enough! I don't sleep worrying. My husband and I make quite a good income but we sure have made a mess of where our income goes now - practically all credit cards! We'd be living a wonderful life, even if

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iVillage Member
Registered: 04-12-2007
Thu, 07-17-2008 - 6:03pm

Hi - love your screen name!


Have you taken a really good look to see where all of your money is going?

iVillage Member
Registered: 04-30-2005
Thu, 07-17-2008 - 6:10pm

From other people that I have talked to its not that great of an idea to go through a credit counseling group.


The best thing to do is to sit down, take stock of what you have and where you can cut. Do you do things monthly that you don't need?


I have been working on getting my debt down for the last two years, just got married so I inherited my husbands as well (yay). I think getting him on track has been harder than anything.


We went out and bought a Dave Ramsey Financial Peace book, and we have just started with the envelope system. We have since moved in with my parents to save money. I have cut up all of my credit cards. When pay day comes around I pull out the envelops, look on my desk sized calendar (it helps me to be very visual about it) to see what needs to be paid. I pay all the bills up until the next pay day and then see what extra bills I can pay.


I would say the first thing to do is become current on whatever bills you have. Then pay off the highest intrest, not neccessarily the lowest balance. And then go to the next one....


Good Luck!

Lilypie Expecting a baby Ticker
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iVillage Member
Registered: 07-11-2008
Thu, 07-17-2008 - 6:26pm

I use CCCS.

 

iVillage Member
Registered: 07-17-2008
Thu, 07-17-2008 - 6:59pm

Hi and thanks for the replies and so FAST! Ok, so I typed in CCCS and my city and state and got bombarded with a bunch of web sites. I think I'll have to do this because if I wait for my husband, I'll get old, so what exactly do I look for? I see they are all diferent companies and that's what I was afraid of.


I do have everything sorted out as far as my bills, credit cards, etc. and if I could reduce those interest rates it would sure solve a lot of problems, then going forth, paying down the principle, not finance charges. I am also going through monthly expenses, trying to sort out what we need/don't need. Now that's the hard part. We've lived as though we need everything and that's got to change as of right now.


Am I better off paying down the higher amount cards, or the ones with the highest interest?


iVillage Member
Registered: 07-11-2008
Thu, 07-17-2008 - 8:36pm

Full name is consumer credit counseling service.

 

iVillage Member
Registered: 07-14-2008
Thu, 07-17-2008 - 8:49pm

I would say the highest interest, not the highest amount owed. You are loosing the most money on the ones that are higher interest. If you have any that you don't owe much, you could pay off those, and then use the money that you would normally use to pay that card off to pay another card. Remember to make at least minimum payments on all of your cards. I know it is hard, but if you post your numbers, there are lots of knowledgeable, non-judgmental ladies here to advise. Good for you for trying to get a handle on this now before it gets even worse.

Silly Canadian






iVillage Member
Registered: 04-10-2003
Thu, 07-17-2008 - 9:52pm

You are better paying off in whatever order will keep you motivated!


In theory, paying off the highest interest rate will save the most money, but if you get frustrated before you are finished and give up, then that doesn't help.


If you are one of those people that needs to see progress, then paying off the card with the lowest balance will give you the boost you need to keep going with the debt journey! Its


Bex -

iVillage Member
Registered: 09-25-2003
Fri, 07-18-2008 - 1:02am

To be honest, we've been paying things off in order from lowest to highest balance. It's easier to wrap our brains around - we just focus on the next debt, so it doesn't feel so overwhelming. For us, it works like this:

We pay household bills (rent, utilities, etc)
We pay minimums on the cards
We buy food for us and gas for the car
We put extra on the target card. (This is motivating because we can say, only $800 or $1000 to go, as opposed to thinking of it in terms of our whole debt).

I save any change I have and put it into our savings account when there is enough to roll.

This isn't how you're supposed to do it. It's probably not the best way for us to do it. But it's working for us. I hope you find a system that works for you.

iVillage Member
Registered: 11-17-2007
Fri, 07-18-2008 - 1:25am

Tell you how I started, Then you do what is best for you and your family.


First I went to the Dollar Store and got me one of those theme school note books. I went around the house got every bill I could find and listed

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Fri, 07-18-2008 - 9:51am

I agree with Bex.

All my best,
Danni

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