How can I get to start paying my debts?

I'm not able to get to start paying my debts. I got ton of debt for many years now. I'm not able to wrap my head around the idea of taking action on making the payments. It's so annoying and unpleasant. What tips do you have for a young man to start paying his debts?

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  • Bill
    Lv 6
    1 month ago
    Favourite answer

    Number one - quit spending. Restrict your expenditures to what is necessary and don’t use credit cards.  Pay at least the minimum on all your debts to keep the creditors off your back. Pay off the smallest debt first as soon as you can. Then go after the next smallest one. One by one, pay your debts off. If you don’t have enough income, get a second job. 

  • 1 month ago

    I pay my debts with the debt avalanche method which is I pay minimum payments on all my debts except the highest interest debt, I pay as much as I can on that until that debt is gone then I move on to the next one. Dave Ramsey recommends the debt snowball method which is paying the smallest debt balance first regardless of interest rate 

  • Sean K
    Lv 5
    1 month ago

    Talk to a credit union or bank to see if you can get it rolled into something with a lower interest rate. If they say no keep asking other banks. Someone will want your business.

  • 1 month ago

    It takes some discipline. You need to sit down and make a budget. Take your NET pay--the amount you get after taxes and whatever they take out. Put that on one side of a sheet of paper, then list all the debts--whatever the monthly payments are-- on the other side. If the debt side is a higher number than the pay side, then you will have to do one of several things.

    (1) You can go to a debt-assistance place like Consumer Credit Counseling. They will help lower your monthly payments so your take-home pay can pay off your debts. They'll make a payment plan for you. They'll contact your creditors to get your payments reduced.  

    (2) You can declare a CHAPTER 13 Bankruptcy. This is similar to (1), but the courts decide how much you can afford, will give you a single monthly bill instead of a bunch of bills to decide between, and THEY will pay out the money to your creditors. You'll make the payment every month to a trustee--that the court appoints. 

    (3) You can declare a CHAPTER 7 bankruptcy. This wipes out all debts except for alimony, child support, taxes and student loans. It's only for credit debt. You may lose some property--such as your car--but you will keep all your PERSONAL property (things like cameras, etc.)  

    (2) and (3) will cost you some serious money to do. A bankruptcy can cost you about $1100 or more and you will pay that up front. But it's official. As long as you don't miss any payments in (2) you will be debt-free in something like a year. (3) may take several weeks or months to complete, but you will be completely debt-free when it's discharged. A Chapter 13 is considered more responsible than a Chapter 7. Doing both will temporarily lower your credit score, but it will come back up eventually. 

    BUT--if you look up the local Consumer Credit Counseling Services in your area, and you follow their plan, you will ALSO be debt free--it may take more than a year, or it may not. AND---best part---there is NO FEE for their services. 

    Absolutely do NOT take out a debt-consolidation loan, get a payday loan or any other credit. And do NOT pay for a service like CCCS--there are a lot of scams that tell you the same thing--and they charge you for the service, sometimes horrible payments. CCCS may charge a nominal fee, but they don't overcharge you or make it hard.

    If your budget sheet shows that you can afford to pay your debts on your own, then you'll have to really buckle down and pay them--on time, every month. No fudging. That means you have to stop buying things you don't need--such as lunch at restaurants, new clothes, high-end appliances, music CDs--whatever. Only buy your necessities until you get it under control. It will take a lot of work. Good luck.

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  • Scott
    Lv 7
    1 month ago

    When you get paid, you pay your obligations (rent, bills, etc) before you spend money on yourself. Don't go out to eat, go drinking, go to movies, etc) pay your bills first.

  • 1 month ago

    Pick the smallest debt and concentrate on paying that off.  Then move to the next debt.  And quit buying sh!t you can't afford.

  • 1 month ago

    First off, stop getting loans! close your credit cards to avoid more debts. Then talk to your bank to giving you a payment plan. Then stick to it. Meanwhile, you can also try to cut small unnecessary costs. ie- netflix, barista coffee, cigarettes, etc. This builds up and stopping these costs can definitely help you save.

  • Anonymous
    1 month ago

    File bankruptcy, its very easy to do, especially in your situation and during these times with covid 19

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