[NeNe23]

I am a 21 year old female that is 8000 in debt. My credit score has dropped because of it and I can't even get a loan if I tried. I don't really know what else to do right now. Even if I get a second job, my debts won't be paid of on time. Its starting to effect my major bills like rent and my car note. Is there any advise that someone could give to help me with my situation before I have a complete melt down:( :( :(

[lacuran8626]

I have a posting for advice because I'm up to my neck, too, but I may know enough to help you with some very basic advice because you are young. I'm guessing this is mostly credit card debt.

First, cut up the cards.
Second, commit to live within your means. Really.
Third, don't keep it a secret. Your friends are 90% likely to have the same problem. Commit as a group to stop spending so much. Share clothes, stay in as a group and limit your Saturday night expenditure to $5 for your share of a bottle of wine. Can you take in another roommate to reduce your costs? Do you have anything you could sell? Could you take a second job for a while, or find one that pays better than your current job? Are there opportunities for you to do work for relatives or family friends like housepainting that will permit you to earn some extra cash on the side? Consider everything.

Then:

Make a list of all the debts you owe, by interest rates, highest to lowest. This information is on your bills.

Now list all your debts and monthly expenses. After you pay for your basics like your housing and food, figure out what you have left for paying debts. You may have some things you consider essential, like a car, that you could actually live without. Get completely real and get rid of what you can. Cable? You can't afford it. New clothes? No. Health club? No. Dance around the living room - it accomplishes the same goal and is free. Roomates want cable and you don't? You need to not fall for the pressure and tell them flat out, "I absolutely cannot afford to pay for cable and am sorry that you want it and I can't afford it". You have to pay what you already owe, of couse, but do not be forced into shared purchases that you can't afford.

When you get paid, set some money aside for yourself to pay for grocieries, your bus pass, and other absolute essentials (Starbucks? No. Buy a $2 thermal mug and make coffee at home).

You need to pay more than your minimum on your highest interest debt - as much as you can to get it paid off as soon as possible. So, negotiate with everyone else to get on payment plans that you can afford. So, if Target wants $25 per month, offer them $10, for example. Macy's wants $50, see if they will take $25. They have a lot of people who don't pay at all, and will work with you. Often they will take just about whatever you will commit to give them regularly. Just don't break those commitments.

When the first debt is paid off, take all the money you had been paying for that debt and add it to what you've been paying on the next highest interest debt. Keep paying that until it is paid off and then move on to the next.

The key is you cannot, absolutely cannot, now see, "Oh, I have $600 available at Macy's now....let's go shopping!" Close the account.

I your parents ask what they can get for your birthday or Christmas, maybe ask if they will help you pay off a debt for something you've already bought instead of buying you more. It's much more satisfying than getting a new outfit. Do not go to them to bail you out though - you won't learn anything and it will erode the relationship. If they give you $10, be grateful and put it toward that highest interest debt. Better yet, give them the account information and ask them to mail it directly so you aren't tempted to spend the money on something else.