how do i handle debt

[jude]

This is the first time that i have asked a question on this forum concerning finances, my problem being so common. However ,it is well past the time of really addressing it.I have been sweeping my debts under the carpet.I must sort them out but keep delaying it. How do i become more positive.:

[JMonkey]

I would start by reading the books and articles of people who have been in the same situation. Of course they won't apply 100% to your situation but there will be aspects of the way they dealt with debt which you could use.

One simple way to help clear debt is setting up regular payments to go towards your debt everytime you get paid (If you don't see it you don't miss it)

[Aleksander Krstic]

Originally Posted by jude

This is the first time that i have asked a question on this forum concerning finances, my problem being so common. However ,it is well past the time of really addressing it.I have been sweeping my debts under the carpet.I must sort them out but keep delaying it. How do i become more positive.:

Go raw, this way you won't have to buy medications and have a health insurance, since you'll be more healthy.

Also read this article.
Overcoming Cheapness

[James81]

I'll give you the Dave Ramsey approach toward debt. Do these things in this order:

1. Get $1000 in the bank as quickly as you can.
2. Cut up your credit cards and resolve to not take on any new debt.
3. Get every bill you have (anything that you owe money on, whether it's a recurring bill like electric or not).
4. Arrange those bills in order from smallest to largest.
5. Make minimum payments on everything but the smallest one.
6. Attack the smallest one with all your remain money to pay it off quickly.
7. Once you get the smallest one paid off, take the money you were paying there, and roll it up to the next smallest one on the list and pay it off.
8. Each time you pay one off, take all the remaining money and roll it up to the next debt up on the list until all your debts are paid.

[ChrisH]

What James81 described is called the Debt Snowball. You can get software to do the same make it even easier. There are many different packages out there. Some allow you to create a Debt Snowball right online. Others require you to install their software on your computer. They generally tell you how much time and money you can save and give you a report exactly what to pay on each debt every month. They are usually pretty handy and easy to use.

Here is a free one online. I think its capabilities are a bit limited. Snowball debt calculator - Become debt free at WhatsTheCost.com

Here is a site that has free membership. It seems to have some pretty good reports. Be Debt Free America - Get Out of Debt Fast

And finally, one that you can install locally: Zilch Standard-debt reduction - Free software downloads and software reviews - CNET Download.com

[EddieT]

Another option that is worth looking at is debt consolidation, if you can combine your high interest debts into a lower interest rate it could make things easier for you.

Although sweeping debts under the carpet may make your life seem easier in the short run it is going to catch up with you, the sooner you face your debts the better it will be for you in the long run.

[Mounds]

Lots of sound advice.
Also important is to set up a budget to help yourself from going into debt again. There's lots of budget templates that are free for download, just customize it for your own needs.
Here's exactly how I deal with debt:

1. Find out how much cash I'm actually bringing in with a budget.
2. Figure out what I can afford to pay onto debt.
3. Set up automatic payments on highest interest debt (usually a credit card).
4. Snowball!

-Tim

[pjhaggerty]

Originally Posted by jude

This is the first time that i have asked a question on this forum concerning finances, my problem being so common. However ,it is well past the time of really addressing it.I have been sweeping my debts under the carpet.I must sort them out but keep delaying it. How do i become more positive.:

1. First you must know the truth of your situation. What is your current financial situation? (This would be the Truth part)

2. Then you must decide if you like it or not. Some people are ok with having debt, some are not. (This would be the Love Part, do you connect with your current situation? it sounds like you don't, but it's still important to be clear on that)

3. If you realize that your current situation is not acceptable, then you must decide what standard you wish your financial situation to be at. What do you want?

4. Once you have decided upon a specific goal for what you want your financial situation to look like, and you know where you are at, then you can formulate an effective plan to get from where you are to where you want to be. The debt snowball idea is a solid one, not the only one though, and it might not be applicable depending upon your particular goal. (this would be the Power part, going after what you do want).

so basically, the first step towards helping yourself would be to determine where you are and where you want to be. I would like to emphasize that it is not productive to get angry about where you are. Instead, focus that energy into creating and following a plan to get to where you want to be. Where you are right now is teaching you several lessons, and is an integral part of getting to where you want to be, so there is no reason to be angry with it.

Once you know those two things, the people on this forum can help comment on your plan and offer their opinions on rather or not it will be effective or not based upon your goals. If you post where you're at, where you want to be, and a plan to get there, we can look at that and say 'you might want to consider changing this idea or that idea' or 'this part looks really good, I hadn't considered that before.' But without such a plan, the advice we offer is unlikely to be very applicable to your particular situation, merely because we don't know very much about it.

I wish you well on your financial journey, and if you do come up with such a plan and post it I would be happy to offer more comments, which hopefully would be more helpful