In Debt with no End in Sight

I got out of debt doing some of the same things NorthernStar did - twice. Twice divorced and twice buried in debt. After I got out of debt the second time I decided there was no use in diving right back in. I live within my means. If I run out of money I'm just out of money. I have a little savings account for emergencies but that is it. In the past 25 years I've only went into debt twice, both times for something I had to have, just couldn't do without. First was a house. It was either rent or notes. I found an owner finance house for about half what it would have cost through a real estate agent. Ten percent down and three percent interest. Took me only ten years to pay for it and now, no notes nor rent. Usually when I needed a car I had enough money saved to pay cash for it - not new but a good, dependable used car. Only one time I had a car konk out on me to the extent that it would cost more to fix than to buy another and I didn't have enough to pay cash. I got one financed because I had to have a way to go to work. Paid it off and haven't been in debt since. To me debt is for emergencies, not a lifestyle.

Sorry you are going through this.

Yes, I have had a very scary financial moments in my life.

I have a couple of suggestions for you that have worked for me.

1. Do a reality check. This is an important, but also very hard first step. No matter how bad it is, it is important to know exactly how much you owe and to who.

Write out all of your debts....credit cards, student loan, line of credit etc..

Figure out what you need to pay each month for things that you have no control of the cost like rent, phone, cable etc.

You want to tally up what your income is and your output is.

If you owe way more than you make you need to find ways to trim your budget. If your really are in dire straights you may need to get rid of a few luxuries like cable, internet etc until things start to balance out.

2. For two months keep of journal of everything you spend money on. Track every single penny. You will be amazed where your money goes. When I did this I was shocked to discover how much I spent on coffee and take out food, 100's of dollars. Now I hardly eat out at all and it has saved me a bundle.

3. If possible, get a part-time job. I have a part-time where I can work a few times a month and I can earn up to $1000. This has helped me pay off lots of my bills.

4. Cut up your credit cards or at least leave them at home.

5. Try to live completely by cash. I leave my credit card and debit card at home. Each month I take $700 out of my bank. I do not go to the bank machine again unless something happens like an urgent car repair.

I put the $700 in a box at home and take money out of when I need it. I have all of my bills on pay direct so I never have to write any cheques. This $700 has to cover groceries, gas, clothing, gifts, and entertainment for the entire month. It has forced me to be much more careful. I only buy what I need.

6. Really work on paying off the debt that has high interest, like credit card.

7. See a good financial planner.

8. Learn everything you can about the law of attraction. Just google it and you will see of the sites. See the movie the Secret.

9. Put together a debt payment plan and forget about it. If you keep focusing on debt, you will create more debt. Focus on abundance.

Good luck. Let me know how you are doing.