How To Legally Eliminate Debt & Get Help With Debt ProblemsA recent article described the increasing number of college students entering their career with over $100,000 in debt and over 30 years of anticipated payments for non-mortgage debt. Debt reduction and elimination is in high demand and doesn't have to be confusing or frustrating.
Dear Bethany,
I need serious help. I just graduated from college and got a job... my life is starting to move in the direction I want it to, but I have a serious spending problem. I already have over $7,000 in credit card debt from my four credit cards, and I also have over $50,000 in student loans. I guess with my car payment and rent I'm freaking out a little bit about how to get out of this debt. Am I hopeless? - Financially Insecure in Las Vegas Dear Insecure, Finding a way to get out of debt is extremely important and it is crucial to take action as soon as possible. This daunting task may seem overwhelming, but it is quite possible if you take the appropriate steps. I am nearly out of debt and if you would have seen my financial obligations just a decade ago, you would be shocked to discover that everything except for my house is paid off in full. Most people get their first credit card while they are in college. This is the worst time to acquire credit because you have your entire future in front of you and the prospects seem endless. You think you can rack up charges with no worry because "I can always get out of debt in the future". After all, college kids always "know" they'll land a great job after graduation. The great job is usually more elusive than it apparently has been for you, and by the time people move from their college graduation into the work force full time they have racked up quite a stack of bills. You're starting off great simply by knowing that you desperately needed to get out of debt quickly. Unfortunately, there is no quick way to get out of debt. You have to consider that you didn’t spend the money overnight, and you can’t expect to pay it off overnight. The good news is that there are steps you can take to get out of debt and it won’t take nearly as long as you think. The first thing you need to do is take action. Don’t wait another year or even another month. Once you decide that you need to make a plan, do it before your old habits overwhelm you. Make sure that you pay off the credit cards that have the highest interest rate first. Never squeak by month after month paying the minimum. It will take decades to pay off high interest credit cards this way. Make a list of your debtors. Then start making a plan. This plan includes making phone calls. You would be surprised at how many creditors will take a payoff that is significantly less than your balance. Oh yes. And stop using your credit cards. This is one of the most important steps to get out of debt relatively quickly. I've included some links below that might help you also... good luck! Additional Resources: Beat Debt & Build Wealth - DaveRamsey.com The Suze Orman Show Other Business & Finance Questions Answered:
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