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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Take Charge America Date:  7/15/2005  10:34 AM
Author:  Rhodnius Number:  208354 of 312155

The only debt reduction service that Fools recommend is yourself. Only you caused this problem, and only you can solve it.

There is no such thing as a "debt reduction service". No company will reduce your debt. Only you can do that. There do exist credit counseling services that can reorganize and renegotiate portions of your debt, but only you can reduce it, and that's by paying it off.

The first rule of holes is, STOP DIGGING! Stop using the credit cards. Freeze them in ice if you need to. You didn't get into this situation overnight, and you won't get out of it in a week either. First you have to lower your spending lifestyle or raise your income so that the latter is greater than the former. Then you have to keep that up for as long as it takes for the difference to ultimately pay off your debt. The lower you can get your spending lifestyle, the faster it will go.

Have you read the series by TamarianG on this board? Her saga details all the steps of getting out of debt far better than I could relate.

Part I: I owe HOW much?!:
Part II: Budgeting in real life:
Part III: LBYMs as a friend:
Part IV: Getting those rates lowered:
Part V: Getting back in the kitchen again:
Part VI: Don't mourn, organize!:
Part VII: Stop, Think, Plan, DO!:

Hope that helps,
- Erik
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