Anybody got any advice on how I can determine if I need a debt program? I'm not behind on anything but it's getting tough to keep up. I'm working two jobs to stay ahead, and after work, overtime and kids I'm feeling the stress? I don't know if it's the hours or the debt but I'm wondering if it wouldn't be better to just file bankruptcy or something, any advice?
One of the easiest ways to tell if you have a debt problem is your stress level. If you are destroying your quality of life and worrying about making payments you don't just have a problem, you have a BIG problem. You need to do something about your debts now. You are running yourself ragged. What will happen if you get sick and can't keep going? Stop using your credit cards. Total up what you pay each month on your debts, and other expenses. Deduct that from your monthly income. If you have extra money left over, use it to pay off debt. This is called a snowball or power payment program. If you don't have money left over, or you find you spend more than you make, I would be happy to help, just leave a post.
Debt consolidation programs are good for a few situations. If you are paying several different loans off, your life may be easier if you consolidate everything into one loan. Youll only get one monthly statement and make one payment.
Also, youll find that your monthly debt payments decrease if you use a debt consolidation program that stretches your payments out over a longer period of time. This means that youll pay out less each month and you can free up some cash.
A tempting (and sometimes successful) strategy is to use a debt consolidation program to manage various high-rate revolving debts. As an example, you might have numerous credit card balances with high interest rates. With a debt consolidation program, you might be able to get a handle on that debt and lower the interest rate (APR) that youre paying. In general, credit cards have higher rates and secured loans (such as home equity loans) have lower rates.
-- Edited by jacqui01canny on Sunday 11th of July 2010 02:01:15 PM
