Get out of debt...so close, but yet seems so hard...

[sheecatt]

In the hole 100 on credit cards, just started making 150 a year. Divorce related, but 100 is the final number I need to erase. Live in DC. Any suggestions out here as to how to fix this s87t?! I know I can do it...but, whee am I going wrong? >^..^<

[sheecatt]

I telecommute one day every week.

[pidgeon92]

100K is an awful lot of debt for a single person.... Isn't some of this debt the responsibility of your ex? Did you sort it out in your divorce settlement?

If you have any assets, it's time to unload them and put the proceeds towards the credit card debt. I don't envy your position, you are way under but if you dedicate yourself you will be able to dig yourself out of this hole.

[Jennifer Lynn]

Aww, Sheecatt, *hugs*

100k is a lot of debt and I imagine it feels excruciatingly suffocating. I would definitely advise not get into any further debt until this is more manageable. Consider this as a fresh start to your new independent life. Have you considered getting rid of all the clutter you don't need around the house? Those small amounts of money add up quickly and may even help you start emotionally anew.

[SouthShoreGirl]

My advice is to look at everything in your life that you don't really need to pay for and try to throw some of your money at your debt that way. For example, can you get a roommate and put some of that $$$ towards your debt? Also little things add up (ie. nixing manis/pedis, daily coffee runs, lunch out, etc.). I also strongly agree with not getting yourself into any more debt.

[Gootsy]

Here's a post I found on my reader today from www.consumerismcommentary.com

Step 1. Order your debts from highest interest rate to lowest. You may find credit cards at the top of the list. It’s typical to see interest rates from 10% to 20% or more. Credit cards offered by stores often have the highest interest rates, so you might find these at the very top. Watch out for promotional rates ending, which they may do on the date promised when you enrolled, or earlier. Card issuers also re-evaluate their customers every so often, and will not think twice about raising your rates midstream. Note that if your credit improves, they will not magically lower your rates. While lenders will notify you if they intend to raise your rates, you may have missed the notice.

Your mortgage and home equity loan may be the next debts in line. It’s important for your list to capture every debt for which you make a monthly payment. Student loans may be the last on the list, particularly if you qualify for tax credits. The Debt Avalanche formula won’t work properly if it covers only a portion of your debt, so consider all accounts.

Order your list from the highest interest rate (after tax) to the lowest. You may have noticed we didn’t factor in your account balances in the above formula. That is because your individual account balances are irrelevant. The issue solved by the Debt Avalanche is the best way to pay off your total debt with all available funds.

Step 2. Pay the minimum to all debts every month. If you’re writing down your list, or using a spreadsheet like Excel, add a column next to each debt to list its minimum monthly payment. This is the amount you will pay towards each debt, except for the one account listed at the top of the list.

Another column should list the payment due date if it is relatively static from month to month. For example, my credit card payment is due on the last date of almost every month, so I would write “30.” This would indicate to me the last date of every month. Your payments should always arrive before the due date. In fact, in some cases, you can reduce your total interest paid by paying weeks in advance of your due date.

Step 3. To your debt with the highest interest, send all extra available cash. If you have an emergency fund, this step is simple. Since it’s unlikely that you can earn more in savings than you can “earn” (reclaim) by paying off your debt, all your unused income after paying expenses (necessary and discretionary as you see fit) should be dedicated towards the debt account with the highest interest rate.

Step 4. Repeat every month. You cover all your bases by ensuring every creditor receives the minimum payment, but you hone in on only your debt with the highest interest. Once a debt account has been eliminated—and it may not be the account at the top of the list if other balances are smaller—remove it from the list and re-order if interest rates have changed.

It’s that simple.

Hope that helps. Check out Dave Ramsy(sp?) show. It's pretty good for debt reduction.

[DistilledRose]

I don't have quite as much debt as you, but I plan on Snowballing mine. I actually just wrote about it on my blog today here.

Hope that might help a little!

[JayLotz]

To dig out from under 100k of debt, you'll need a big shovel. But luckily, you have a great income. The average income in the U.S. is something like $47,000 per year. If you can live on $80,000 per year, and put the remaining $70,000 per year towards debt, you'll be debt free in a year and a half! If not, you'll need to sell something. Can you sell your house? Get rid of an expensive car and drive a clunker for a while? Maybe sell one of your kids? (Kidding!!!)

[lucille]

I would look at a major lifestyle change. Dump anything that is costing you money each month, cars, large house, expensive habits. If you went to using public transit, a cheaper car, apartment instead of house you could take all of that saved money to pay down the debt faster.

[Cindysu]

Since you live in DC, if you have a car now, can you sell it and use zipcars?