Drowning in debt
by Scott Bilker |
Dear Scott,
I am drowning in debt. I am attempting to figure out a budget that
is livable. WE have a daughter going to college next fall, a grown
son that has moved back home and a son who has moved out but we
cosigned for his truck payment so we are stuck with that. I was
tempted to order your book but I have gotten so many debt books but
nothing that will help me. I looked at our credit card debt which is
more than I make in a year. I work but had a second job that is not
working out. My husband works full-time. We just need help in
figuring out what to do. Thanks for at least listening.
--Jeanie
Answer
Jeanie,
Thanks for writing!
Sounds like you really have your hands full...each of the situations
you're dealing with requires much work to resolve. I hope that I can
provide you with some useful ideas.
 Daughter in college--
I don't have to mention how expensive college is becoming. It's
already double the cost then when I attended just 10 years ago. Make
sure you look into financing options right away. You can find out
about the details of government backed loans at the Department of
Education web site at http://www.ed.gov/.
Also, consider having your daughter attend a community college for
the first two years. Most of the credits would probably transfer to
four-year colleges. I took this route and it saved me thousands of
dollars in tuition!
Son who moved back
home--
I have been buried by debt before so I know how tough it is to deal
with. If I had a grown son who moved back home at that time I would
ask him to contribute to the family, financially. I wouldn't want to
ask but sometimes you have no choice.
Truck payments--
From the way you mentioned this it sounds like there is no chance
that you're going to be able to get any money at all for the truck
payments. Can you convince him to sell the truck and get a less
expensive vehicle?
Debt in general--
Getting debt under control is about getting organized, creating a
plan, being disciplined and following your plan, limiting spending,
and taking advantage of your best loan options to reduce the cost of
the debt by lowering your interest rates. I think that you're doing
the right thing by learning about credit and taking action to pay
back debt.
Read my article about getting lower interest rates by clicking here.
You mentioned that you want my book
but you're not sure if it would help. I stand behind my book with a
full money back guarantee. Also, you may be able to find it in your local library.
Sometimes, even after a good plan, you may not be able to get the
debt under control, then it may be time to consider other options,
maybe even bankruptcy. You can learn more about bankruptcy from Nolo.com.
Another option is credit counseling. If you would like me to make a
recommendation just fill out the form at the DebtSmart®
Help Center.
Good luck and please keep in touch to let me know what happens!
Scott
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