How did you become debt free?

Canada
September 12, 2008 2:41pm CST
I will be 32 in a few days and have a substantial amount of debt. I have a goal to have it paid before I turn 40. Now i'm looking for tips on how to become debt free on a small income. Bankruptcy will be my last resort next year if I don't see any kind of reduction in my debt load. How can I do this? I try to pay more than the minimum but now I can't afford to do that I can just barely make the minimum. Please give me some advice!!
1 person likes this
3 responses
@SweetNkky (119)
• United States
12 Sep 08
The way I started to pay my debt off was to sit down with all my bills and make a budget. I made sure I had a way to pay over the amount that I owed. Another way is if you own your own home then you could cosider getting an equity loan to consolidate all your bills into one payment. If that is not an option they do offer credit counsling places. They do call your creditors and get lower pay offs and also you make one payment to them and they divide it out to your creditors. The down side to that is it puts a third party on your credit report and brings your score down. One big thing I did was everytime I would get extra money whether it be incomtax or christmas bonus or money from my parents I would take it and pay off one of my smaller bills. Or if I didn't have any smaller bills I would pay off down my larger bill. One more thing you could also look into, if the days your bills are due is making it harder for you to pay them you could have it change.. Say you rent your house and its due on the 1st and your car payment is on the 1st too. Thats two huge bills at one time. Some banks will allow you to change your due date once so that way you will have extra money on each pay day to go to other bills. I hope this makes sense to you. Im only 26 but Coming out of high school and into college on my own I went mad crazy with spending money and not realizing the effect it would have on me. I know own my own car and buying my first house. Good luck with you bills. Oh I forgot to mention stay calm about it. It wont do any good to you or your family to be stressed over bills.
1 person likes this
• United States
12 Sep 08
I am 22 and the best thing that i have learned is stick with things that you need rather than things that you want when you are trying to become debt free. I classify myself as being in debt but a lot of people dont. I am not even $1000 in debt but i dont wanna even be in the hole that i am in right now. So keep your head up. Everything will be ok for you afterwhile!!
1 person likes this
@ANTIQUELADY (36492)
• United States
13 Feb 09
the way i got out of debt was working my fanny off. i worked 2 & 3 jobs at times. i did not buy anything i did not need. i watched my bills & paid therm on time. they came first & then i lived of f what was left. i raised 2 boys by myself. the main thing is live w/in your means.