Are there any ways to get out of debt, without filing for bankruptcy or making huge monthly payments?

We are $44, 000 in debt. We tried debt management, and the payments were around $500 per month. We cannot afford that. We can't file bankruptcy, because two loans that we have, my mother is the co-signer, and it would stick her with the payments, and she can't afford to make those?

Are there any ways to get out of debt, without filing for bankruptcy or making huge monthly payments?
Jen G is right- Get the book The Total Money Makeover by Dave Ramsey and work his budget.





You may have to make some tough decisions, example, sell the car(s) and buy a cheap one ($500) to drive for awhile. Or if you live in the city with public transportation, use that for awhile. Next if you own your home, you may need to sell it. If you are behind at all with your mortgage, I suggest you put it on the market so you don't get foreclosure.





My guess is the debt management program isn't paying off your debt any faster than you could do yourself and they are getting a fee for providing the "service."





Read the above book:


Then get the $1000 in the bank (have a garage sale, sell the car(s), ebay stuff, etc)


Then start the debt snowball. You many need to get a second job. If you are a stay at home mom and your husband works full time maybe you get a night job while your husband works days so you don't have day care expenses. Maybe your husband can deliver the morning paper before he goes to his day job.





You can do it- read the book and then get moving! You can do it!!
Reply:I'd like to recommend you to take a look at the book The Total Money Makeover by Dave Ramsey. You can check it out from the library. It's a pretty easy read.





His big thing is to get yourself on a budget because it gives you control of your money. He says to put a name to every dollar on paper, on purpose, before you get it each month.





Once you have a budget, he takes you through 7 baby steps:


1. Save $1000 for a starter emergency fund.


2. Pay off your debts via the debt snowball.


3. Finish off your emergency fund (3-6 months of expenses)


4. 15% of your income in retirements accounts.


5. Save for kids college.


6. Pay off the house.


7. Give, Save, and Spend (enjoy life because you're financially able).





You can get more details on his website www.daveramsey.com. We've been following this plan since January, and have finally started to make progress on getting out of debt.





I wish you luck.
Reply:Sell your cars, shoes and handbags.
Reply:This is how I did it. Figure out how much you can pay each month. Recognize, however, that you might need to make some changes in your lifestyle -- pack your lunches, no nights out, etc (if you are not willing to make some changes, then just default and leave your mom with the bills). Figure your budget, with income, and all regular expenses. Figure a small cash allowance. Arrange all the bills in order of interest rate. Figure the minimum payment for each. Send as much as possible to the one with the highest rate (NOT the highest balance). Send the minimum to all the others. When the one with the highest rate is paid off, then send the same amount, plus the minimum that you have already been paying, to the one with the next highest rate. When that one is paid off, continue on until they are all paid. Cut up your credit cards today. Pay cash or do without. If that is too burdensome, then stick your mom with the bills.