I am in debt of credit cards and Personal, My repayment for theseare more tahn my salary, some advice to come?

I am paying min Due to credit cards ,and loan amounts are getting credited from my sal. Some advice to come out of this debt trap ASAP.I am in debt of credit cards and Personal, My repayment for theseare more tahn my salary, some advice to come?
You need to increase your income!


Please do not consolidate. It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. There is a better way.





A. Have a garage sale and sell anything that you no longer need or want.





B.Get a temporary part time job, if you have one, get another. There are plenty of temporary jobs available. Or hire yourself out as a window washer or whatever it is that you can do. It is better to have a no fun year or two than a no fun decade.








Here is a plan that can help you. If you work the plan, the plan will work for you:


1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an ';emergency fund'; category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.





2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.





3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:





To start :


Debt #1 (highest interest): minimum payment+ extra payment


Debt #2 (middle interest): minimum payment


Debt #3(lowest interest): minimum payment





Debt #1: paid off


Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment


Debt #3: minimum payment





Debt #1: paid off


Debt #2: paid off


Debt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.





That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.





4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.





5a. When you have your emergency fund in place, add a category for ';fun'; to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.





5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.





5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.





You can do it and it isn't as hard as you think. Just follow the plan.I am in debt of credit cards and Personal, My repayment for theseare more tahn my salary, some advice to come?
1) Tabulate your necessary living expenses (er, once a wk scotch and dining at a french restaurant doesn't count)





2) Tabulate in a worksheet what you owe to every financial institution





Salary/ income less living expenses = $A


Amount due to all financial institutions = $B


Duration of monthly repayment = $B/$A





Once you've split it fairly, it's time to write to all your financial institutions, ask for a resettlement or standstill arrangement to repay w/o additional penalties. All of them must know your ability to pay and how long will it take you to repay w/o new borrowings. Otherwise, it's personal bankruptcy or Chapter 11 (depending which country you're in). But, both are costly options for you and the financial institutions.





Oh ya, your salary should be paid into a bank account where you have NO amounts owing to the bank. Otherwise, the above fair repayment scheme does not work.
Credit card companies charge interest on full amount even if you have partially paid up your debt.





Hence instead of paying all credit card payments, clear them credit card by credit card, month by month - incl EMI for balance payment since they will adjust payment for EMI first. You need to submit a letter with each such payment and then followup on phone.





Mostly, credit card payments attract a greater rate of interest than personal loans. Hence give preference to credit card payments.





Try and also get your loan transferred to other Credit card companies - often they give lower rate of interest and some remission period to get this transfer in their favor.





For personal loans, talk to you bank and make sure you are being charged on reducing balance. Negotiate to reduce the rate or get is transferred to another bank willing to give a lower rate.
My dear Friend will like to request you that ,just keep away from credit cards as much as you can , and try to earn more,


so how you will earn more


apart from your job


i will like to give you some help on that


there is a website where there are good links which actually show how to earn from internet online job , you can earn about $3000 per month from this online part time job


so why you are waiting for


http://www.earn-money-work-at-home-on-internet.blogspot.com
pay as much as you can, and try to borrow money from friends you know well. borrowing from a bank is a good idea too, if the interest rates aren't too high and you can afford the monthly bill.


otherwise you'd just be getting into more debt.





go on you tube, if you have your own place and learn some massage techniques, then offer massage in your home.


i made 90 an hour doing that.





good luck, i wish you well.


also, positive affirmations concerning money when said in the morning


are good boosters for you.
u can ask ur credit card issuer regarding the same %26amp; infom them regarding yuour repayment potential ask to stop leaving intrest on it %26amp; they can come down for settlement as well .





you can pay them in terms of easy EMI's which you can get it done asper your salary %26amp; expenditure.
Hi Dear





You can take a personal Loan from a Bank and pay off your Credit card. The Bank Loan will be Cheaper.


Take this as a asvise. Spend only how much you can to avoid a situatuion like this
try declaring bankrupcy
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