Beauty

[Kind1too]

http://www.daveramsey.com/blog/envelope-system-explained

This looks like it's based on bi-monthly paychecks. I think I will try this too. I owe about $1000. but would like to get it paid off. I need to get my rainy day fund going again. It seems like it has been one thing and then another lately.

Good luck to you.

[Kokathy]

On 5/13/2014 depglass said:

You are not going to like this suggestion. Quit reading the board. Its like having AA meetings in a bar or Weight Watchers meetings in a bakery. Reading about the great TSV's in your favorite lines is too much temptation. I think its worse than actually watching the presentations. Short of that, (you may not be able to go cold turkey) get a debit card and use that for QVC purchases. That means you pay immediately for items that are really luxuries.

I totally agree with this and avoid getting sucked into spending by friends and family. For example, I went bonkers at Bath and Body works and stacked up on hand soap thanks to the boards here and one of my co-workers. I can't blame anyone but myself but it's so easy to get psyched up and go on a spending spree. I watch my coworkers and friends go on lavish trips or spend lots of money on hand bags and I just say no. I always find myself putting myself in check now. Now I talk alot but spend next to nothing.

It's easy to get sucked up but depending on your income level, I wouldn't beat yourself up over the $8,000.00 too much.

I follow Dave Ramsey and I've made great headway by following his method of paying the smallest balance first and so on and so forth. I've also transferred balances to 0% credit cards, essentially giving myself breathing room some months. I've put my cards in a spot I can't easily get to unless it's dire emergency. I try to bring lunch and breakfast from home. I shop sales when need be. Listening to Dave has been a huge help being I am single, he's my accountability partner. Next month I start the written budget.

[Ibby114]

Love the suggestions here- especially the idea of transferring the balance to a 0% card so you can pay it off faster. Getting a part time job is a wonderful idea- but don't beat yourself up! Just have this be a life learning lesson- each month you're paying down the balance will reinforce that lesson. Feel fortunate you caught yourself now before it got worse- and you'll be dancing when it's paid off!!

[UMDTerpFan]

On 5/13/2014 ibb38 said:

Love the suggestions here- especially the idea of transferring the balance to a 0% card so you can pay it off faster. Getting a part time job is a wonderful idea- but don't beat yourself up! Just have this be a life learning lesson- each month you're paying down the balance will reinforce that lesson. Feel fortunate you caught yourself now before it got worse- and you'll be dancing when it's paid off!!

The only problem with those transfers is that there is often a fee of 4%. So it really is not free. Read the small print and make sure there is no transaction fee.

[Mistreatedbycs]

The 1st step is realizing that you have a problem.

Sit down with a sheet of paper and list things that could be sold. Look into 0% no fee balance transfers, there are some out there but before you do anything, read the fine print, if they don't get you up front, they'll get you at the end since most people will not pay up that kind of debt in that short period of time.

Is there anyone you can borrow the money from? Anything to avoid those interest charges would be beneficial.

I was in your situation years ago but fortunately I went to my parents and they bailed me out, I still had to pay them back with a scheduled amount but I avoided the credit card interest charges. It scared me once and I'll never do that again.

Don't get down on yourself, just pick yourself up and think, now what do I do and how do I do it.

Good Luck....let us know what happens.

[DoxieMomma]

I am currently debt free and have a kick-butt credit score.......WooHoo!! However, I did have a hiccup several years ago. I'd had two credit cards and had always paid each off in full every month. Like you, I had a couple of unexpected expenses that I put on my credit card, then I got a little carried away with shopping. I was 20+ hours away from home, and shopping was therapeutic for me (or so I thought). In just a few of months, I was in a position where I was only making the minimum payment each month. So, I put my two credit cards in a ziploc bag full of water and I put them in the freezer!! I used my debit card for gas and groceries and that was it. (I'd had a pre-set limit of $500 on my debit card, so I couldn't go crazy with it, even if I wanted to). I decided, no more shopping, plain and simple. If I was tempted to buy something frivolous, I had to think long and hard about it..........long enough to pull my "bag of credit" out of the freezer and let it thaw out. In no time at all, my debt was paid off and I've been debt free ever since.

[Desertdi]

It's Murphy's Law........every time you treat yourself to a splurge......a big appliance croaks

[Lucky Charm]

My advise would be to go through you closet and anything that still has tags...sell on ebay. Any evening wear in mint condition. ..sell on ebay. Any unopened gifts of perfume unused beauty products...sell on ebay. Look around your kitchen, if that food processor you asked for during he holidays is still boxed...sell it. You can make.some make money there and cut expenses elsewhere. Great time of year to lower your electric bill...really pay attention to where you're wasting money. You can do this!

[ECBG]

If you have a credit union anywhere, you can apply for a low interest loan to get it paid off. You could also look into a home equity loan. I'd favor the first because you get rid of it quickly. You're probably looking at a $250-$300 month payment.

[Irshgrl31201]

I agree with a lot of what has been said here.

First I would see if you can pick up any extra hours at work. If that is not a possibility I would look into a second job. If you are not skilled and cannot get something with a good hourly wage look into something like cleaning houses or serving at a restaurant. You can make very decent money doing that. I have friends who average $15-$25 an hour doing that. Not bad. These types of jobs also more conducive to being more flexible on the hours you need.

I would then look into selling whatever you can. Go through your clothes, kitchen gadgets, furniture, etc.. and have a garage sale or sell on Ebay.

Also a lot of people say pay off the credit card with the highest interest rate but Dave Ramsey has been saying for years to start with the cards with the smallest balance. His reasoning for this is that once you pay off a card, it empowers you and really strengthens your resolve to paying off the rest. You have seen you can do it and you become more empowered to do it. A lot of other financial advisors scoffed at this advice for a long time and then this past year Harvard came out with a study showing that people who actually did pay off the smallest to the largest debt were actually much more successful than just paying it off by the highest interest rate. It would seem more logical to do that but the study at Harvard and then another study at Northwesterns Kellogg School of Management showed that people had much more success when the "Snowball Method" as Dave Ramsey calls it (smallest to largest regardless of interest rate) was used by the people in the study. Those that conducted the study found that the study participants were overwhelmingly more successful that the people who tried to tackle it by going with the "rational approach" and the reasoning for that was 1, people aren't logical, most in debt know what they need to do but don't take the logical path and do it and 2, that the mere existence of achievable subgoals motivates early goal persistence and keeps you more positive therefore making you more successful.

At least you have recognized you want to fix this and see the importance of being debt free which is more than most Americans can say.

Good luck to you!