I agree with you except when the reason you are in debt is due to emergency medical bills like trips to the emergency room, followed by emergency hernia surgery, lost time off work etc. Those are things you just can't "quit".
Im in debt because of going in jail one year and a few years later went back to jail then straight to prison. So while I was sitting in there my bills kept reaccurring and calculating up while I had no way of contacting any body to put a hold on accounts
Just finished reading your how you were scammed by an Debt Consolidation Program. I don't know that much about Debt Consolidation. I do know many years ago my ex and I did two Debt Consolidation. They paid our debt and we paid the company It was done quickly. Just one pyt each month to the (Debt C.) company The other option was we gave the Debt C. Company the name and acct number of our creditors, They wrote/fill in the checks , Then gave to us to mail or or give personally to the creditor.. Didn't your creditors contact you within that two year period that "Where's our money" Late pyts etc If they never got consolidated then I would assume they were never paid.You had to get Phone calls letters, pay up or going to a debt collector. Credit reports show balance etc. Within the 2 years if your credit report showed no activity.. I would be concerned. I'm just trying to figure out if the debt consolidation program never paid your debt why the creditors did not contact you. It only takes a short time to settle with a creditor. through debt consolidation. Also if you were not getting any updates from the Credit Consolidation company or statements regarding your account. That's a Red Flag. I just have a hard time understanding that $10,000 was put out in two years,,Did you get receipts, Did you keep a paper trail?
Yes tell your son Not only look straight ahead but look at all directions, "You never know what's going on in the background. In and around you.
Commitment may still have a negative feeling attached to it allowing you to begrudge it. Try thinking of it as an Opportunity to do something that will definitely improve the quality of your life and it's tangible. You can measure your progress as you go. Seeing positive results, even small ones, is a huge motivator for me.
Thank you for considering my thoughts. Hope someone finds this idea helpful.
@MikeCopper I'm a big Dave Ramsey fan. First started listening to him back in 2000-2001. With the exception of mortgages, have been debt free since 2006 or so. Best friend I ever had. Prior to becoming debt free I had my primary residence and 3 rentals with a mortgage on it all. Got one of the rental mortgages paid off back in 2014 or 15 and working my next one now - smallest to largest just like Dave advises.
My biggest financial complaint now, is all the junk mail I get offering me tens of thousands in credit and loans at super-low rates. I don't need to borrow money anymore. But I'll be happy to loan money at a fair rate, provided it's secured by some kind of collateral. 🙂
A few weeks ago I got a phone call from someone claiming to be with the small business administration (I'm self-employed) and wanting to loan me money. That call didn't last long when I asked them how much they were going to pay me to use their money instead of my own. I think we both had a good laugh.
The steps work if you put forth the sincere effort. My concern and question is if I stop my retirement contributions that would raise my take home pay? What ideas do you have so that I will not owe federal and state taxes in an effort to pay off my debts? Certainly would appreciate a reply.
I appreciate the steps that Carl shared. My question and concern about cutting up all credit cards is two-fold. One, while it would not have me sleeping in a box, if my washing machine died (for example) and I had to buy a new one, I would not have enough cash on hand to buy it. While it is not a 'sleep in a cardboard box type of emergency, having clean close to wear to my job is important. And laundromats are not cost-effective over time. It is an example of something I would feel the need to replace to keep my life on track. So keeping a card active for that kind of emergency would seem wise. Two, I've read that closing credit cards will negatively impact our credit score. And to stop using them, which will cause them to go dormant produces the same effect, I think.
I wholeheartedly agree that credit cards are one of the biggest problems contributing to our mounting debt. And, if one has spent down their savings, and using their income to pay off debt, how do we buy the necessities that are before the cardboard box and not nonessentials like a 65" screen tv or a trip to Hawaii, but things we can all live without.
looking for ideas...