2 income no kids about 20K in debt, how can we get out?

My spouse and I both work and we earn a decent amount ( between 32-34K each a year) but we have this enormous amount of old debt. We would like to buy the house we are renting (owner is renting with option to buy) in about 2 1/2 years but with our debt it is impossible to even think about buying a home. We can't even finance a car, much less buy a home. I am at my wits end because I am tired of the situation. I feel that we earn enough to pay something but alot of these companies want full payment. I don't want to go to a debt couseling program because most aren't reputable and I haven't met one person who has completed it. I just don't know what to do, my spouses car is now dead and I can't get a car financed nor do I want to. We already have a high car payment and our monthly bills. We do have money left over every week I mean, we buy everything cash. And we always have money in the bank so I know there has to be an answer. Please help us.

If both of you have not been able to budgeted yourselves by now, then you need a debt expert to consolidate all your money problems and contact each of your companies owed to reduce payments. This means discipline in handling financial responsibilities. It will take some time to do but in the end all the past debts will be gone and done with. Do it!
Spartawo......

Budget. You need to start with a written budget.
spend your check on paper before the month starts. You can see exactly where the money is going. You can see where to save money.
Do it and i promise you'll feel like you have gotten a raise.

You say you have money left over every week? Thats a good start. Cut out any extra's that you can. You didn't mention it, but going out to eat 3 nights a week and getting a morning coffee at starbucks has to end. With the money you have left over every week, start sending it to your creditors!! The ones with the highest interest first. Yes people want full payment, but if you call and say I promise to send you this much every month can we reduce the interest, they usually will work with you. Even if people won't reduce the interest, pay as much as you can on your highest interest debt and pay the bills off one at a time. Now is not the time to get your nails done, just pay, pay, pay! You can make a big difference in 1 year if you cut the extra's and do get new debt. As for your husband needing a car, there is always some $600 car in someone's front yard that will get him to work and back if you must have 2 vehicles! And depending on how much money you have in the bank, use some of it to pay the old debt, making sure you have enough to cover emergency's!

My suggestion to getting out of debt is to try two strategies at the same time:
1) Cut your expenses
2) Increase your payments on your debt

I don't know where you live or how practical it'd be, but if it's possible, you might want to just have the one car for now, and either carpool with your spouse or take public transportation to save money. Another good way to save money is to try to cut down on the amount you eat out, and when you go to the grocery store use coupons and shop with a list. My boyfriend and I have found that we can save a lot of money just by saving our change in a jar. At the end of last year we had over $300 in change which went right into our savings account.

In order to get out of debt any time soon, you should make more than the minimum payment on your account(s). You don't specify if they're student loans or credit card debt, but if you have multiple credit cards that are carrying balances, work on paying off the one with the highest interest rate first, and then work down from there. It might be a little bit before you can afford to buy a house, but it's probably better that you wait and pay down your debt before you make a huge financial commitment to a house. If you keep paying all your bills on time, your credit rating will improve and you'll be able to finance a car or buy a house in the future.

Best of luck!

I'm a big fan of Dave Ramsey and his book Total Money MAkeover. He can be a bit annoying, but he's got a good plan.
1) emergency fund - you've got to have about $1000 on hand so you can stop using credit cards
2) line up all your debts - and start paying them off starting with the smallest first (for a feeling of accomplishment), then when it is paid off apply that money to the next smallest debt and so forth until it is paid off and keep going and going.

There are other steps beyond this, but this is how to get out of debt. It takes self-discipline and both of you have to be willing to participate whole heartedly. Dave even advocates getting an extra job if it means paying the bills earlier. It's good stuff - go to your public library and get a copy of the book - you might like it. Good luck!

Please email me exactly how many credit cards do you have and their current interest rates and balances.

Also include Annual Fees, ATM Fees, Cash Advance Fees and any other fees you have paid in the past.