5 Responses to “I have a friend who asked me this question about getting out of debt?”
wizjp on
October 26th, 2009 3:19 am
Increase your income or cut your spending.
curtisjb1983 on
October 27th, 2009 5:54 am
Stop eating out…
get rid of cable or dish for a while and rent books from the library and do more things outside.
debt consilidate…
refinance your home if you pay mortgage and you can lower your payments drastically
you can also refinance your vehicles
call all of the companies you owe money to and ask them to lower your interest rates, (more will say yes than you actually think)
As far as the closing costs go on the refinancing, ask the creditor to include that amount in the loan, spreadig a few hundred dollars over five to 10 years won’t phase you at all compared to how much you will save…
Straightdowntheline on
October 27th, 2009 4:56 pm
Get an part-time evening job (in addition to day time job), pay as much off of the most expensive debt first, stop spending!
Adam A on
October 27th, 2009 6:20 pm
Cut whatever you can out of your budget – you don’t need cable, cut some minutes from your phone plan, don’t use your air conditioner this summer, buy generic groceries and only buy the minimum to fee your family.
Start with the highest interest rate and put all you can into it until it is gone while paying the minimum on the others. Keep doing that until they are all gone.
Stay away from debt consolidation – it doesn’t look good on your credit report. Refinancing sounds like a good idea, but there is usually some upfront expense to do so (closing costs, etc).
FaZizzle on
October 29th, 2009 3:42 am
Get a second income. It’s that easy.
Also, learn how to budget. Move to a cheaper location, sell your car if you can take public transportation, etc. Learn how to live in a budget instead of living paycheck-to-paycheck.
Increase your income or cut your spending.
Stop eating out…
get rid of cable or dish for a while and rent books from the library and do more things outside.
debt consilidate…
refinance your home if you pay mortgage and you can lower your payments drastically
you can also refinance your vehicles
call all of the companies you owe money to and ask them to lower your interest rates, (more will say yes than you actually think)
As far as the closing costs go on the refinancing, ask the creditor to include that amount in the loan, spreadig a few hundred dollars over five to 10 years won’t phase you at all compared to how much you will save…
Get an part-time evening job (in addition to day time job), pay as much off of the most expensive debt first, stop spending!
Cut whatever you can out of your budget – you don’t need cable, cut some minutes from your phone plan, don’t use your air conditioner this summer, buy generic groceries and only buy the minimum to fee your family.
Start with the highest interest rate and put all you can into it until it is gone while paying the minimum on the others. Keep doing that until they are all gone.
Stay away from debt consolidation – it doesn’t look good on your credit report. Refinancing sounds like a good idea, but there is usually some upfront expense to do so (closing costs, etc).
Get a second income. It’s that easy.
Also, learn how to budget. Move to a cheaper location, sell your car if you can take public transportation, etc. Learn how to live in a budget instead of living paycheck-to-paycheck.