just keep chipping away at it.

based on your fixed expenses and your discretionary spending. Also your income from all sources.

Put it on a spreadsheet and track it weekly. Basically it becomes a cash flow statement. You replace your estimate figures with real amounts each week.

The reason for this is that you can’t make proper financial decisions until you know exactly what you earn and what you spend and whether you spend more than you earn or do you have money left over each week.

To get out of debt you have to do three things. Stop using credit and pay off what you owe and spend less than you earn. If you can consolidate debt and pay less interest you have more to use to pay down debt. One way of doing this is to use credit cards that let you transfer balances at a lower rate than you are paying.



Only if you have money left over can you do that.

If so you don’t need credit and you can use the extra to pay down debt.

First,, STOP USING CREDIT CARDS

do not close the accounts( that affects your credit rating)...just put them away and pay cash..


Get out a legal pad and list each one in order..

Least owed to most..

Always pay the minimum (never get past dues or skip payments)

After the minimums are met, pay everything you can on the ones with lowest balances..

as you pay the small ones off, keep at it until it's more manageable..

It took a while to get into the mess and it will take probably twice to three times as long to get out if it..

If your debts are SOOOO excessive, and you fear losing your house, please see a professional..Sometimes bankruptcy is the only way out.

If you do declare bankruptcy, it will stain your credit rating for TEN YEARS, and you may not be able to rent places with that on your record. If it's the only way out, a professional can help you through it.

also:

cook ..don't buy food outside the home
take your lunch to work
have garage sales to cut down on what you can get rid of
take a second job and put all the earnings toward debt.

"After the minimums are met, pay everything you can on the ones with lowest balances.. "

After the minimums are met, pay everything you can on the ones with highest interest rates.

It's about saving to retire early and can be applied to getting out of debt..

For me it was taking any raise and putting towards my employer matched 401K. Drive less, keep my car longer, local vacations and spend frugally. I don't go out to eat that much. Yes it hurts a bit but you come out of it if you persist. It becomes a habit. YMMV, works for me..
m

I know that sounds glib, but what I really mean is make sure you're exploring all income streams. First of course can you get a better job. Second, can you take on a second job. 3rd, consider if you have a room to rent. Also, do you have assets you aren't using that you could sell, especially clothes, furniture, etc. Air B&B has created an opportunity to make more money. You don't have to do this for life, but it can be the path to paying off debt. And yes, in the end part of this is making sure you're only spending on what you "need", at least until you're out of debt and have a little savings built up (Like $5000 or so).

And depending upon your life situation, do you need to get out of your apartment or house and rent from a roommate for a period of time until your debts are reduced. You don't have to do all of these, but one or two can "solve" your problems.

Dave Ramsey's books.

Then here's what I've got to say.

As suggested above, evaluate your present condition: Monthly income, minus fixed expenses. Fixed expenses include rent or mortgage. utilities, car insurance, medication, health insurance, transportation to work, clothing upkeep and NECESSARY replacement of clothing.

What is left over, is of course, discretionary expense money.

That includes Netflix, cable, movies, eating out, EXTRA clothing, car washes and on and on. List them. Which ones can you do without or less of?

Now, look at the remaining discretionary spending. Divide it by 30, 29 or 31, depending on month. That amount may be $10.00, $50.00 or whatever PER DAY. It is your true daily discretionary money. That is what you will work with.

Lets say, you have $10.00 per day of true discretion. At the end of EACH day, add up what you spend on that day. Put what ever amount is left over from the $10.00 in a drawer, envelope or whatever. Take out $10.00 more for tomorrow.

Build up the drawer money until it reaches $1,000. No matter how long that takes. That is your reserve emergency money. After you accumulate that money, you can begin putting the extra daily money towards debt reduction. Putting even a penny in the drawer is a reward that becomes addictive.

Yes, it will take time. Maybe you say to yourself, "At that rate, it will take X # of years to get out of debt." Well, where will you be in X years if you don't start now?

Me? I was $108,112. In debt three years ago. My debt is now down to $53,202. I will be debt free in 38 month.

If it is your goal, get serious about it and do it.

I will emphasize that paying cash for all your day to day expenses is crucial. At the beginning of every week take out the cash you need for that week. I divide that money up in envelopes: clothing, gas, health & well being (toiletries and the like), entertainment, miscellaneous, and Christmas Club. The rest is what I spend on groceries and just walking around money. When I need or want new clothes, I see how much is in that envelope. If I want to buy perfume, there needs to be enough in the health & well being envelope.

And so on.

It's incredibly effective. If there's nothing in the entertainment folder, I guess I'm not going out with friends. Although that's also what miscellaneous is for, when you don't have enough in one envelope, you can take from miscellaneous.

Obviously the precise amounts, or even the specific envelopes, will vary from person to person, but I've done this for years.

If you have furry roommates. you'll need an envelope for their food and grooming products.