I promised that I would get you some information on old debt. Here it is.
As far as handling your debt make a list of ALL your regular ongoing bills on one sheet of paper---rent, utilities, groceries, etc. Hopefully you read my last topic on Real Budgeting for Real People Contact your lenders for your student loans if you have them and find out when you need to start paying. If you can defer it or get a foreberance, then do so, only if you can't afford to pay. Otherwise, make a payment on your student loans one of your regular bills. On another sheet, write down ALL of your old debt. This old debt will include all your credit cards, hospital bills, and such.
Hopefully you have some income so make a spreadsheet and budget all your regular stuff in according to your regular income. Then with what money is left over, start paying off your old debt. Starting with the smallest ones first---Why start with the smallest instead of the biggest? Because those are easier to pay off quicker and will be out of the way plus you'll have practice paying those bills regularly so that when it comes time for the big ones, it wont seem like suck a hard thing to do. It will also help boost your motivation to see something "PAID IN FULL"
Now after you have this all down on paper, see if there are any things that you can cut out of your regular spending or cut back. Check out bundles on phone, internet, cable. That is cheaper than having high bills in multiple places. If you have a car that you're paying off, contact the finance company to see if you can lower your payments(you may be able to especially if you have been good with your payments). To save on groceries clip those coupons. Check out Angel Food Ministries to save a chunk on your groceries.
Find exra sources of income(Avon, babysitting, doing hair/braids on the side, etc.) Use this extra money for those loose ends that you want to handle such as an extra payment on a bill or emergencies.
Notice I didn't say anything about saving. The reason is because while you are hording your money, the interest is still piling up on to your bills. Your money is worth more right now if you use it to pay off debt. You could horde it but then your bills would continue to grow and if you don't pay them, your creditors could snatch your savings too.(((especially the govt.) Do try to start saving three months worth of regular bill money though, in case of layoff/illness/or something else out of your control that may keep you out of work. Put it back a little at a time whenever you can. If you don't trust yourself not to dip into it then let someone hold it for you whom you REALLY TRUST.
Hope this helps. Let me know if you need help with the spreadsheet.
next time we will discuss what to do once you are debt free.
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Thanks for the information. I am already purchasing groceries from Angel Food Ministries. I believe this is a good program for all to utilize. I only wish, I knew about the program when I was struggling.
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