Skip to main content
No. of Recommendations: 15
gentility,

Welcome. You've come to the right place. And you are overlooking another solution. In fact, its *the* only solution, which I'll get to in a minute.

Actually, none of the 4 things you've suggested are a solution at all. #1 and #3 are moving debt around, they are not paying it off. Your debt moves or shifts, but it is still there. They *can* be strategies within a greater plan if used properly, but they are not solutions.

#2 can only help you do what you can do just fine on your own, and that's only if they're legit. And #4, as you well know, is no solution at all.


You've build up debt, and there's only one reason for that. You've spent more than you make. Period. Now, there may be many reasons, or situations, or things that you may have spent on, but nonetheless, its the simplest of math. Your spend more money than you make.

So the only solution, which may be obvious by now, if you need to spend less than you make. Period. Thats it. That's all there is to it. You can do it by making more, or spending less, or some combination of the two. But that's the only way to get out of debt.

You didn't get into debt overnight, and you won't get out of it overnight. But you need to start.


First thing you need to do is stop using the credit cards. Period. Put them away, lock them up. Many people recommend freezing them in a block of ice (no, not kidding) - that way you have them, but they're so darn hard to get that you're not doing to use them in an impulse. But whatever you do, stop using them? Why? As is often said around here, the first rule of getting out of a hole is to stop digging.

Second, is you need to figure out what you're spending money on. How much on rent, how much on groceries, how much on food, how much on gas, how much on clothes, how much on insurance, how much on utilities, how much on coffee, how much tv, internet, how much on entertainment, electronics, etc. You need to track every penny (or at least as close as you can).

When you know how much you're spending, you can compare that to what you make, and decide where you need to cut back. $40K may seem like a lot - and, indeed, it is - but people here have dug out of a lot.


Oh, and if you're willing, you need to share these numbers with us. Your bills, your minimums, and your list of expenditures. No one can dig into those numbers like some of the people around here. And once you're willing to follow some of the suggestions to give yourself a more secure life going forward, you'll be on your way.

I hope this helps, and I hope you follow through. We're here for you.
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.