What is my best option to get out of debt?
I’m 26 аחԁ a second year law student. I currently һаνе 27K іח unsecured debt. I’m trying desperately tο ɡеt out οf debt аחԁ аm unusual аbουt wһаt tһе best option іѕ. I аm currently living аt home tο save money. Bесаυѕе I’m іח law school, I οחƖу һаνе a раrt time job wһеrе tһе hours swing. Mу parents аrе חοt іח a position tο һеƖр mе wіtһ tһе debt. I’m thinking οf credit counseling? Debt settlement? Bankruptcy (absolute last option)?? Aחу suggestions?
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Tagged with: Absolute • bankruptcy • credit counseling • Credit Debt • debt settlement • Last Option • Law School • Living At Home • money • Parents • Part Time Job • Unsecured Debt
Filed under: Free Money Saving Tips Debt Relief
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I wouldn’t go with any of your options. The simplest way is following these steps and it will do the least amount of harm to your credit permanent as well:
1.Gather all debts
2.Arrange from smallest to largest; write each debt and amount in order on a sheet of paper. Contain the minimum payment of each.
3.Pay the minimums on all EXCEPT the smallest debt. On this one place each extra penny towards until it is gone. Cross it off the list
4.Go on to the next smallest debt. Pay the minimum on it + the minimum from the debt you paid off + each extra penny you can come up with until it is paid off
5.Continue in the pattern until everything is paid off.
Since it would be hard to work more hours or get a second job in your case, consider doing odd jobs when free-time comes up. Things like lawn-mowing, house-cleaning, and babysitting. You can also sell your excess stuff or look into starting an eBay business. Buy stuff cheap at a garage sale that you can turn around and sell for more on eBay. Research what sells and for how much before you do this though. There are many sites that offer information or you can just watch sales for yourself until you find what you need. Until I got the hang of it, I sold my kids and my clothes that I either didn’t like anymore or didn’t fit anymore.
Of course you would also have to stop accumulating more debt for any of this to work. You would be running in circles if you did all this while adding more to the pile.