Feeling overwhelmed

[FireFrog]

I would love some advice and input from those of you who have btdt.

I am feeling so overwhelmed and depressed about my family's finances. It is clear that we have a problem and I don't even know where to start. We are in significant debt, from credit cards to cars to student loans. We are over $100,000 in debt and I feel like we are drowning.

We don't feel like we are extravagant -- we don't go out to dinner every night or even every week; we don't buy unnecessary or expensive clothes; we don't buy electronic toys or drive outrageous cars.

I guess I am looking for reassurance that we can get out of this by people who have done it. What are the true first steps? What did you honestly have to do to get started digging yourself out? And how long did it take you?

Thanks!

[Purple*Lotus]

Well I haven't gotten out. But I still wanted to post. We have about 10K form medical expenses from back when I was uninsured. Some days it feels like I will never get out. But I just keep plugging away. One thing we try to do is devote as much left over income as we can to debt. We don't have cable, etc. We try to cut as many things as we can. You can do it though, check out the Dave Ramsey thread, there are some very helpful and inspiring people over there :

[alicia622]

I second the Dave Ramsey thread and reading his books or see if you can find his show on talk radio.
It is very hard to dig yourself out but it can be done...but it's very hard work.

[SleeplessMommy]

Do you own a house?
Do you have a 401K plan? How old are you?
Do you have a budget?
Does the $100K include student loans or other education expenses?
Has the cc spending stopped?
Have you checked your credit report to make sure you know all of whats there?

And finally, how did it get to $100K? Medical expenses, groceries, travel, hobbies, home repairs or ???

Without more info, I can suggest credit card counseling.

And a reminder - if you have no health insurance and end up at the hospital with a medical emergency do not hand over a credit card. If give them the credit card, you could have the above poster's problem in just 1-2 days.

[mtm]

You can do it! We have paid off 15,000 over the past 18 months without being totally frugal. We have just under 2000 left to go then we're turning to saving for a few things (bigger emergency fund, dental work for dh, and a new dishwasher). I like the Dave Ramsey approach, his Total Money Makeover helped us out. Its a bit preachy for me but very common sense and written for an easy read.

If you feel comfortable post your expenses and earnings and we can help you with your budget.

[Denvergirlie]

Do you have a budget? Do you know where every dollar goes? The first step is taking stock. Take pen to paper and list everything. Every debt, every dollar incoming.

I just got rid of $29K of debt in 18 months without every really getting intense about trimming the corners. Sure, I got focused and I told my money where it was to go, but I didn't sell off much stuff, I didn't take an extra job, etc.

Yes, it's do-able. But only if you and your partner get on the same page. Get intense and attack the debt. Have you stopped the behaviors that got you into this amount of debt?

Without more details it's hard to help you come up with a plan of attack.

Like others, I followed Dave Ramsey's methods and totally recommend it.

[missmich]

You do need a plan for sure to become debt free and you need to make your goal attainable so you don't get to upset if you don't reach the goal when you want to. So don't say to yourself "I'll be debt free in 1 year" if you know that probably won't happen.

Sit down and look at what you and to who and write down what each minimum monthly payment is. Also write down what the interest each month is. I try and pay the min payment and the interest each month.

Then write down what you earn each month.

Those are the easy part b/c after that you have to figure out where you can get the money from your existing income and put it on your debt. You may have to cut out some expenses as well.

If you rent your home,would it be cheaper to move to a less expensive one? Or can you rent a room in your home to a student or someone for an extra $300-$500 a month? Can you rent the garage or parking space?

Is there anything that you can sell for money? This is also a great way to declutter

Can you start to live more frugally? Maybe buy less name brand food and meal plan more? This has helped me save money and eat better.

Do you work? Maybe you can find something part time or weekends to bring in a little money for the debt?

Have you seen the No Spend Challenge or Dave Ramsey threads here? I think they'd be helpful.