19 Year Old In debt Already?

Question

I work at a pretty decent job for my age, and make about $1,800 a month. But I had a really big spending problem about 3 months ago, and now I am paying for it, because i took out about 3 cash advance loans, I am now still paying back the interest on each one every time I get paid, I also have 2 credit card bills that are outstanding at the moment and a cell phone bill they I pay on time. I also am paying a car note on a car that i just totaled, i have insurance but i still owe about 900 on this car because it was new and only about 6 months old. I also pay insurance every month, how can i pay all of this off when I don't have enought money in one paycheck to do this?

I need help please...I know now how to save the money i need to know how to get myself out of this because at the rate i'm going at It will take forever to get my self out of this situation because I am really stressed out especially after my accident I cry and pray all the time, i need some financial advice.

Answer 1

OK first of all, calm down. It's sad, but many Americans are in the same position as you are.



Now, one thing you need to learn is that you never, ever take a cash advance! The interest is way, way too high! I dont know all of your expenses, so it's a little hard to answer your question. You need to put yourself on a budget. No extravagent items - just the necessities. Yea, maybe it isn't all that much fun but do you want to get out of debt?



You mentioned that you know how to save, so I'm wondering if you have any money saved now. If you do, put it toward the payment with the highest interest (probably one of your cash advances). Do some investigating with your two credit card companies. If you haven't been late on making payments, call them and simply ask if they will give you a lower interest rate (this does actually work - besides you have nothing to lose by trying - you can only come out better). Also ask about balance transfers. They may be able to give you a low rate (be sure to ask about & factor in the "transfer fees" - sometimes they will charge a %age of the amount you are transferring). Basically, you want to try consolidating as much of this as possible and getting the lowest rates you can. I'm not sure, but you may be able to get your cash advances transferred - be sure to ask lots of questions on this first though - you need to know how much interest you will be paying!



If this is a possibility, ask your parents for some help. I don't know what kind of situation or relationship you have, but I'm sure they don't want you to suffer. I would have to think that if you approach them with a plan they would be willing to help. Ask them to pay off something and come to them with a plan to show how you will repay them. maybe they wouldn't even want repaid, but you need to bring it to the table and fully intend to pay them!



Another alternative may be to go to a bank (witha co-signer) and get a loan to consolidate everything.



One final alternative, check the internet to find a credit card that offers zero percent for the first 6, 12, 18 months, whatever. open that and transfer as much as you can. then cut up the other cards.



Basically, make a budget & stick to it. I can help you if you need it. You have $1800 coming in each month, now list what you have going out.



Good luck, email me if you need help

Answer 2

I know you are in a tough situation, but you are very smart to be confronting it now before it gets even worse. It will not be easy, but you seem committed to get through this and you have started off on the right track by controling your spending and asking for help.



If you are not driving you do not need insurance. Check with your cell phone company on the early termination fee to see if it makes sense to cancel your phone, you may be better off paying it every month for now. You might see if they will let you switch to a lower level plan. Also talk to the company with your car loan and see if they can lower your monthly payments.



I think this should probably be your payment priority.



1. Minimum payment on your credit card.

2. Minimum payment on your cash advance loans.

3. Car payment.

Paying these three will keep your credit from getting worse.

4. Cell phone payment.

5. Extra payment towards your cash advances. Start with the smallest balance first.

6. Extra credit card payments.

7. Extra car loan payments.



If you want to provide numbers(balances, minimum payments and interest rates). I can give you more details.



Since you can not do much about your income, you should focus on keeping your expenses to the minimum and transfer your debt from short term high interest to long term low interest. Are you taking student loans? If not you should take student loans and pay off your high interest loans with the money you would be paying for tuition.

Answer 3

I was in debt my self (i was 19 also now im 20) and to be honest its really hard work actually im still paying for it, not as bad as it was about 8 months ago but still.You can consoliodate all of your bills, go to bank and ask them to refer you to a consoliodate clinic, or you could check on line. What they do is add all of your bills up and make it one bill and its easier to pay off. The way I did it was to get a second job. I had three. Youll be working literally 24/7 and you dont go out shopping or partying to the clubs or to the movies because you simply dont have time. I worked on paying one bill at a time and pay only minimum amount for the others untill I got thru with all of them. Now im only payin my car . My boyfriend pays my cellphone so thats a help too. You just have to concentrate on whats important and drink alot of energy drinks. After you finish paying everything off go get a full body massage and youll feel really good about yourself

Answer 4

I'm in your same shoes honey! All I just did was sucked it up, went to my mom and asked for help (which was hard, since my mom doesn't pay for anything!) We went to the bank, got a loan to cover every last credit card bill, and canceled them all. Then I canceled all the bills I didn't need (cable) and then just buckle down and don't let yourself spend money. It sucks and sometimes I just want to spend the money I have saved, but you just gotta be firm with yourself. I hope this helps and good luck!!

Answer 5

i will't propose filing financial disaster over a trifling $5000. each and every Friday on the Dave Ramsey prepare, I listen human beings call in who've paid off tens of 1000's of money, and more beneficial, in debt. They did it through operating 3 jobs, promoting stuff, getting rid of their $28,000 vehicles and utilising 15 twelve months previous vehicles without funds. they did not eat out, they did not bypass on vacation, they did not do something except pay expenses and paintings for some years to eliminate debt. (Now they could take each and every of the money they used to pay on debt, and pay for each thing with funds, construct up wealth, and be givers). the following is what you should favor to do: bypass to school area time (or stay out for a twelve months or six months) and do not something yet paintings to pay off this debt. you could make $5000 operating in McDonalds. you should also favor to imagine that in case you do not pay those expenses, you would nicely be causing someone, someplace, to lose their interest. i'm sick of my tax money going to those banks who imagine giving a mastercard to a 19 twelve months previous w/ no income to communicate is a good suggestion. Now I even ought to bail those banks out.

Answer 6

Short and simple answer .... Get Suze Orman's book "Money Book for the Young, Fabulous & Broke " she addresses all these topics and her financial advice is PROVEN and very sound. Good Luck ... Debt sucks ... oh .. also check out "Secrets of the Millionaire Mind" by T. Harv Eker .... you can't miss when applying the principles from both these financial geniouses...