September 12th, 2007 | 
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I’m 26 and have been working a full-time job for only the last 4 or 5 years. I was very stupid a few years back and built up credit card debt (not delinquent at that point) by using credit to buy gas for work and then not paying my balance in full each month. Instead I thought as all immature and financially irresponsible people do: “Oh, I’ll take care of those balances eventually…all I have to do is pay the minimum for now!”. As the balances increased, I split with my ex and suddenly found myself solely responsible for many bills that we had previously shared.
A couple years later, I am now working MUCH more diligently to take care of delinquent accounts, which included 3 credit cards, 3 student loans, a car loan, and a few other smaller amounts. I have paid off one maxed out credit card in the last year and am making payments on two student loans (the third is in a temporary hardship forebearance).
I just feel sometimes like the mountain of debt is so big that, although I doubt my credit can get much worse, I want to see that light at the end of the tunnel but feel like with interest and late/overlimit fees I won’t ever reach it.
I am living relatively frugally right now and plan to perhaps open a credit card several years from now for only emergencies. I’ve read that when you have a series of high debt balances, you should attack those with the highest interest rates first. Sadly, I choose which to pay off first by deciding which company’s collectors are the nicest to work with 
Before amassing so much debt, I never could have imagined how terrible being in debt could make a person feel. There are honestly days where I don’t want to get up because I feel so awful. I don’t want my debt wiped away…I want to take care of it all on my own. But it’s so tough and the worst part is is that I have no excuses. I stupidly acquired the debt and now I want to get rid of it the right way.
Can anyone relate or offer any suggestions? I’m all ears. I’m just looking for some advice/encouragement I guess. It’s a frustrating way to live.
Wally Krulish
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If I were you I’d listen to Dave Ramsey and maybe even give him a call. He does a personal finance show. Keep going I know it is frustrating but the fact that you are addressing it and are not looking for a handout shows a lot of character on your part. There is a light at the end of the tunnel you just got to keep going strong to get to the light.
If I were in your shoes I’d keep paying off the debt as you are, pouring as much as I can to take out that balance. Credit card for emergency isn’t a good plan…build up cash for emergencies 3-6months is usually a good start after you have your debt paid off.
I believe that you just explained my life to a T!!! I was practically in the same boat. There is hope!! I went on a debt management program called Take Charge America. They work with your creditors to eliminate the interest rates or at least make them 1 to 2%. They stop accruing interest and finance charges… And they make the payment pretty low. I have about 8,000 in credit card debt and my payment a month is 235.00 and I will be debt free in less than 4 years. It was the best thing that I could have ever done. Give them and call or read up on it. It may save your ****!!
Get on the Dave Ramsey plan and start walking the Baby Step and learn how to get debt free and live debt. Get current, get a beginner emergency fund, and start working the debt snowball and get rid of those debts. You will also learn that you can live quite easily with out credit cards and no debt. I started this plan a little over a year ago and I will be debt free (except for my house) by Christmas.
Remember to hang in there. The debt is only temporary and it will go away once you start attacking it. As Dave says, “The borrower is slave to the lender.” So get rid of your debts and be free and learn to never borrow money again.
Go to you local library and check out the book, The Total Money Makeover by Dave Ramsey. They may also have it on video. Or, your local bookstore will have a cheap paperback copy.
It is not one of those get rich quick, or get out of debt quick books. It outlines how Americans are in debt up to their eyeballs and how to get out of debt through hard work, time, patience, and resolve. It has stories by other people are how they feel just like you and how they feel now. Plus, he has a AM radio show that if you go to DaveRamsey.com you can probably find a local AM station to listen to him on. You soon see he is a no nonsense guy about getting out of debt. He also sponsors classes that you can find in many cities. Look online for those. He ain’t easy. It ain’t easy. But, you will get to listen a talk to people in the same boat as yourself and get ideas and encouragment.
A few of the other people got it right, you need to start the Dave Ramsey program. You can go to daveramsey.com to get alot of good free information and a idea of what he teaches you to do. Get the book, “The Total Money Makeover”. I started his method at the first of the year and have paid almost all my debt off and plan to pay the last 2k off in 3 weeks then I will be debt free. I know what you are feeling though I was that way a year ago and just used Dave’s plan and it works. It won’t be easy but it’s worth it. Here is the basics on what you need to do:
Sit down with all your bills and pay check. Do a budget figuring paying the miniums on everything and see how much money you have left at the end of the month.
Now see what you can get rid to help free up cash each month. Things such as taking lunch to work, making your morning coffee and taking with you, cable, extra’s on the cell phone, home phone package(might be able to down grade), etc. Usually there is a few hundred a month you can cut out of your budget.
Save $1000 emergancy fund fast. Pay the minium on all your bills and take the extra money and save 1000 as fast as you can. This money is not to go shopping with or anything, it’s for emergancy like the car breaking down etc..
Next, list your debt smallest to largest. Pay the minium on all your bills except the smallest one and take all extra money and pay to it. Once the first debt is paid off take what you where paying to it and add it to your next smallest debt, while making the minium payment on everything else. This is the snowball effect and it works great. Once you get a few things paid off you really get excited about it and work and focus harder on saving money.
To speed things up you may want to look at getting a second job or if you have a spare bedroom getting a roommate or do both. If you have car payment, sell the car and get something for cash. That usually free’s up a few hundred there. Maybe sell somethings around the house to help get that $1000 emergancy fund saved quickly. I’m your same age and just a year ago was feeling the same way as you, now i’m about to be able to yell “I”m debt free”. If you want you can email me on here and I will be happy to help you as much as I can.