Question Detail: Drowing in Debt

Drowing in Debt

I owe so much money I am scared to addit up. I think it is over twenty thousand dollars. I need someone to help me sort thingd out. I cannot afford to pay anyone to do it. Help me

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Anonymous replies: I have been there, the worst thing you can do is not add it up, if you dont face it, how are you going to overcome it? Add it up, thats the first step to debt relief, know thy enemy! Get all the documents relating to the debts and file them as your debt file, add them up and put togethor a chart/table that represents how much each debt repayment per month is and how long you have to be debt free. This will give you the light of the tunnel, even if the tunnel is 5 years ahead. I did this 4 yrs ago and at the age of 26 i had ammassed debts of £12,000 around $18k. I still havent paid all of that off but i have the majority becuase when you do this chart, you can look at which debts you can get rid of early by putting less urgent ones off. By not paying one debt off, you can add what you would of been paying off to the ones you have prioritised and then pay them off quicker (Prioritise highest those with highest intrest rates or any flat debts where no intrest is added would be lowest). In order to do this successfully you will need to contact the credit agencies that you are "putting off" to get their permission for what is termed a deferred payment plan. If you explain to the agency your situation and what you are proposing to combat it,e.g, defer payments for 1 year and after that one year has passed, set up a new repayment plan. They may ask you for a fee for this. All responsible lenders will have a debt management section who are their to ensure that the debts they are owed come to them, its in their intrest that you pay them back so if you are having trouble paying them back at the moment but are actively doing somthing that would mean their would be a lesser risk of this happening after you have deferred for a year then they would be happier. Any debts that are sold on you may as well ignore as they wont incur intrest and from my experience all they do is send you letters, i dont know what US law is but debts of this nature if you dont acknowledge them are considered spent after 6 years so if you change ur details dont let the debts that have been sold on know about it. Only deal with "live debts" debts that you have signed up to, not that have been transferred to a credit collection agency. Any deferred payment plans that are agreed, get it in writing or email that you keep with your debt file so if you get challenged about it, you can evidence it. End of the day, its a no-brainer burying ur head in the sand, you got urself into the mess and you can get urself out of it. Find a hobby that takes little money to do as well because u will get very bored if youre not spending, i did and found reading to work best for me. Last bit of advice and really as an afterthought, when you are seeing a brighter light to the debt darkness, dont take any more debt on until you are completley debt free, that way you will know what debt really is. I didnt do that and would of been debt free this year but chose to "just get a quick loan" as i had paid a couple of big ones off and "really needed X" so wont be completly debt free til next because of it.

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