Downward Spriral

Question:
Don't know how many people on here give good advice but i'll try anything at this point. I have two credit cards, one maxed at $3000 and the other maxed at $3800. I have a 1998 financed vehicle for $9000. I have $400 open in a revolving account at les schwab. Basically, with this and my bills combined I am owing more than I make (or at the very least breaking even). It's too late to take the vehicle back, that was my first instinct. Nobody will approve a personal loan to consolidate the credit cards so I can see an end because I have so much open debt. I actually have decent credit and strive to make on time payments but it won't last much longer. I need a way to deal with this, or at least a way to have enough money for food and bills. I don't want to declare bankruptcy ever, and debt consolidation services seem shady to me, and would affect my credit rating from what I understand. Any suggestions?

Answer:
If you have good credit now, try to keep it that way if at all possible. Look for a part time job and use the money to pay down the credit cards. Meanwhile, put your credit cards in your freezer (seriously) or some other place where you wouldn't ordinarily go so you won't be tempted to use them. After you have a part time job, see if you can refinance your car loan at a lower rate. Also, look for credit cards that zero-interest introductory offers for a limited time. If you find any, transfer the balances from your old cards but keep paying it down. You'll save on the interest during the introductory period. Look for anything you own that you can sell and use that money to pay down your credit cards. Don't pay exact change whenever you buy anything during the day -- just pay with paper money. At the end of the day, put all of the coins you receive as change in a container. At the end of each month, take the change to a bank with a coin machine and get cash for the coins and use that money for an additional credit card payment. Once you get most of the debt paid off, do the same thing with the coins except put the money into a savings account.





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