I must agree with everyone so far. Let me add by answering your original question. Try to stay away from any debt elimination companies. This will ruin your credit.(if you haven’t already) Credit reporting agencies consider using these companies similar to filing bankruptcy.Consolidating debt may help but it doesn’t do anything about why you got in this spot in the first place.First thing to do is stop using credit cards TODAY, and start that budget.
I was interested in getting some advice on ever improving budget planning ideas. I think it is never wrong to continue to get ideas. However, I must disagree with the person who wrote in to stay away from debt elimination companies. My husband and I 6 years ago, got a reality check when we were way over our heads. We contacted our pastor for guidance and he suggested gettting assistance from CCCS, Consumer Credit Counseling Services. We worked with them for years. It did not hurt our credit. If your finances are in such a disarray, there is nothing wrong with seeking assistance. They worked with us our creditors and after a couple of months most companies reversed the “late count” because we were showing them that we were trying to meet our obligations without going bankrupt.
Now, there are alot of debt consolidation companies out there that a sham. You have to be very careful. However, CCCS, is a not for profit national organization that is highly rated. After we were done with CCCS, we had such great credit established that when we went to buy a home we had no problem… as our scores were great!
So, the word out there not to do this may not work for everyone. However, in our situation and the experience I had I would highly recommend CCCS, if you are in need of getting under control, that is to get you at least started on the right track.
I hate to sound like this, but maybe the real solution is for your husband to get back to work.
You also should sit down with him and make him aware of whats going on, and if not at the very least create a budget, then draw up a list of your expenses and your income. You will have to find a middle ground. Expenses of $5000 per month and income of only $4000 a month doesn’t really leave you with any options.
This list was designed more for helping people to help themselves. Not some sort of magical debt elimination program.
For starters, list out all your monthly debts.
Mortgage, cell phones, electricity, gas, yadda yadda.
Then list your approximate income.
If you have budgetted $150 this month for clothes for the kids, but need an extra $50 for bills, and the designer pants are $90 and you need two pairs, but the no name ones are only $35, can you see where I’m coming from?
When I was a kid, I ripped at least 2 pairs of pants per month. My parents bought me pants that fit, and kept me clothed for public school. I didn’t get teased because I didn’t wear Levi’s. But when I fell off the swing, and ripped a big hole in them, she was less upset because they were $15 and not $65.
Just some things to think about after watching this video: