C.O.
D.:
If you want to pay me to pay your bills - great! I'll do it.
That's EXACTLY what these companies do - YOU PAY them to pay your bills for you. They contact your creditors and TRY to negotiate a pay off or a lower amount - and then they pay them for you.
DO NOT DO THIS!! YOU can do this on your own and you can take control of your finances. It's not easy. But you need to learn to live within your means.
1. Stop living with the "see it, want it, buy it" mentality. If you cannot pay cash for it - don't whip out the credit card.
2. It is NOT an overnight fix.
3. Cut out all unnecessary spending.
a. Stop going to Starbucks every day and spending $5.00 on a cup of coffee
b. Stop buying books and borrow them from the library.
c. Bundle your cell, land, internet and TV into one provider.
d. Drop the fancy cell phone - get one that has the basics. Learn to live simpler.
e. use coupons WHEREVER YOU GO!!
1.a. Check out Groupon - you can get coupons for oil changes, dinners, massages, etc.
1.b. Do not go grocery shopping without a list and your coupons to match your list.
1.c. Make a menu for the week and stick to it - switch the meals around if you want - but stick to the menu.
4. If you have two cars - do you REALLY NEED two cars? If not - then sell the one you can get the most money for - especially if neither one are paid off.
5. If you own a home - CONSIDER refinancing and/or taking a second out to pay off all of your debt and get things done around the house. This is a LAST CHOICE option as you will be stating you will be staying in the house for at least 3 to 5 more years - you will owe more on the home and you will be paying for it longer (in essence starting over).
THINK before you buy something. If you can't pay cash for it - do you NEED it? Need being an essential for life. Not a niceity - that's where many people go wrong - I "HAVE" to have this. I will DIE without it. You bring it home and it sits on a shelf or in your closet collecting dust. The essentials are food, water, housing.
Don't be sucked into the scam that says "we will take care of your debt for you" - they may end up ruining your credit rating - if it's bad, they can make it worse.
Put money in a savings account EVERY payday. NO MATTER WHAT! you HAVE to build a reserve. My husband and I had over $50K in debt - it took us 2 years and a lot of hard work and many tears - but now? we are a cash only family- the only debt we have is our home. No car payments, no loans, etc. We have 6 months of my husband's salary in savings and are rebuilding our retirement fund.
Sell on ebay or craigslist things you have not touched in six months. Let of of the item(s) and use the money from that sale to help pay down your debt. Shop at consignment shops and thrift shops - you'll be surprised at how many people give away their "name brand" clothing and you can pick it up - many times NEW WITH TAGS -for a few bucks vs. the $$$$$ they paid for it.
YOU CAN DO THIS!!