need some financial advise: I have debt

[Cali4RonPaul]

$7,000?

If I calculate my liability, mortgage, CC, loans, IRS.

I probably owe around $370,000.00

I'm 25 yrs old, single, and a small business owner.

 

[rrcamp]

Something else to consider: in the past, declaring bankruptcy really hurt your credit score and your ability to take out all types of loans. We are now living in a special time, however, where I believe both personal AND corporate bankruptcies will SOAR. As such, there's a pretty good chance legislation or simply the mass of bankruptcies will make it less than a horrible thing. They might even wipe the slate clean like they're doing with mortgages now.

I don't know any of this for a fact, but it's something to consider.

 

[ShannonOBrien]

Don't listen to anybody else!

This is the rule of thumb I learned from my econ professor:

If your interest rate is above the inflation rate, pay it off as fast as possible.

If your interest rate is below the inflation rate, make the minimum monthly payment and let inflation eat away at it. Eventually the inflation rate will go below your interest rate and you can pay it off for much less than it actually was.

If you think you can't pay it off, even putting $50 down on the principal every month will at least chip away at it.

 

[Ozwest]

Pay off your debt.

Your creditors won't give a fuck about your personal life.

And interest rates wont get any smaller.

Hope you find a good man.

 

[Ozwest]

$7,000?

If I calculate my liability, mortgage, CC, loans, IRS.

I probably owe around $370,000.00

I'm 25 yrs old, single, and a small business owner.

As a long-term small business owner, you always carry debt, paying wages , investing in plant and equipment, paying accounts, waiting for payment, hiring accountants, working 80 hours a week.

Nice try.

But...

Your hard-earned belongs to some fuck-head on Wall Street.

He has Porsche payments.

 

[acptulsa]

If your interest rate is below the inflation rate, make the minimum monthly payment and let inflation eat away at it. Eventually the inflation rate will go below your interest rate and you can pay it off for much less than it actually was.

This is good advice. And if you take some good advice from earlier in the thread, you'll do the balance transfer dance and get new cards as soon as the interest free honeymoon is over, though I don't know if card offers will continue to be as thick on the ground as autumn leaves over the next year or two. If worst comes to worst, get to Credit Counseling. They know the ins and outs and will negotiate you a better interest rate and a break from fees.

Looks like you get to go on your austerity program early, E. Plant your Victory Garden!

And tell your mom hi.

 

[[email protected]]

A lot of people swear this guy's strategies work for getting out of debt...

http://www.daveramsey.com/

Start working Dave Ramsey's plan, it's the best thing you'll ever do for your personal finances. My wife and I have gone from near bankruptcy 3 years ago to owing on only our house which should be totally paid off in about 2 years. A combined grand total of $460K in debt when we got married 3 years ago is now down to $173 K and shrinking quickly.

Although you can buy his courses and books, his plan is simple and you don't have to have any of his materials to follow it. He's probably on the radio in your area, or you can listen to it online. Just start listening and see what happens. People in your situation call in to him every day and he gives them advice. That's pretty much all his radio show is, people calling in to ask advice. He mostly says the same things over and over again, it's motivating to hear the success stories too.

 

[graddium]

A lot of people swear this guy's strategies work for getting out of debt...

http://www.daveramsey.com/

Ya, I used his strategies and paid off $35k last year. Go take one of his classes (usually held at a local church), it'll help you get some encouragement and see that $7k is doable.

 

[JeNNiF00F00]

Another victim of government guaranteed student loans is the student. It drives college tuition prices up, and results in huge loans to pay off when you graduate and realize the world is not full of $60,000/year jobs.

Hit that one on the head! I too am in a TON of debt due to 8 years of student loans.

 

[Matt Collins]

LOL.. he's avoiding my phone calls..

You can call me! I guarantee I won't avoid your calls!

 

[berrybunches]

Thanks for all the advise, I have been busy lately and have just had time to check this thread.
I think http://www.nfcc.org/ was what I was thinking of but all this is great!
My parents have almost 40k in credit card debt and I am afraid they will not be able to keep up eventually so maybe we can all get into this together.

I know 7k does not seem like a lot to some but I don't have anything to show for it and I will not be in a better financial situation anytime soon. I feel like a slave to it. At least with my car loan (have 8k there, 2 more years to pay it off) I have something to show for it and a set time in which to pay it off.

Really appreciate it, what better place to ask then here!