What are some ways to pay off debt when you are barely making the essentials?
Scenerio:Your income has dropped $325 a week largely due to medical reasons. You are not in a healthy postion to increase work hours. Medical bills are mounting. You have cut out doctors visits. Credit cards have been in limbo for 4 months. All attempts to cut exspences have blown up in your face but you are still trying.The trick: do not mention filing for bankruptcy. Regardless of the reasons behind the debt some understandable and some NOT, You spent the money.You have gone to a government accepted debt agency but they say they can not help untill exspense are cut. Take it from here...
I guess,that would be diapers...a whole lot of diapers....
hows your credit? do you have any collateral assets?
a couple of options spring to mind - debt settlement and a consolidation loan. If your credit is shot, which it probably is, the loan might go out the window and debt settlement might be your best option.
I know you don't want to look at bankruptcy, but don't let your creditors know that. When faced with the prospect of you being declared bankrupt and having your debt wiped, they may be a lot more open to a negotiated debt settlement.
Unfortunately, these days, there are many people in very tight financial situations. Adding medical issues to a difficult spot is that much tougher.
There are little things that may be of help in such a case. This is the time to speak up and ask for help from family or friends. This is not the time to be shy. Perhaps gathering all together someone could come up with a helpful, useful idea.
If one is well enough to use the computer, perhaps they may be able to sell unwanted items on Ebay or Craigslist for fast, passive income that only requires a little time and a decent ad.
Cut down on food expenses any way possible (check out some of money saving articles, for sure). Stay clear from any expense that is absolutely not necessary. This is not the time to buy expensive gifts for birthdays and so on. A thoughtful card or even a phone call would suffice. By being honest of your situation with family and friends, they will most likely understand.
We cannot do the same things we have done and expect different results. I feel for you if you are in this situation but I also hold the belief that we can rebound from a variety of things.
That said, if you are renting or own with or without assistance from others, you must downsize and find something cheaper than you currently have. Rent a room or move in with family if possible to cut expenses. If you do not want to move, rent a room or two out.
If you have a car, downsize or go without. Car insurance, maintenance, gas, all add up and could easily make up for the $1300 you're missing if you have a newer vehicle, a gas guzzler, or higher insurance rates due to accidents or DUI's.
Many people sell stuff they no longer use, which is a smart way to get extra cash. If you're a good writer, try finding projects on Odesk, Textbroker, or Elance for extra cash that's usually paid within a few days of completing the project. Perhaps you could cut some of your grocery expenses by eating less meat while making a good change for your waistline to boot.
These are a few options, they just may not be the ones that you prefer, but making a change now is much better than not doing so and having your debt balloon due to interest. Even if family or friends help financially, their view of you will change particularly if any of the debt is tied to bad financial choices or spendthrift habits.
You may also be taking from their hard earned nest egg to make your life more bearable and that isn't what family is for, nor is it exactly fair. Whether or not bankruptcy is mentioned, it is a reality when people in this type of situation do not make the hard choices and change their habits even just for a year, two, or three until they can pay off their debt, build an emergency fund and get back on their feet.
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