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[quote=Anonymous][quote=Anonymous]Hi. I am deep in credit card debt, I would say about 30k. No car payment.  I lost my job and been putting living expenses on credit cards for about 2 years.  By paying minimums on the cards, I was  able to "survive" longer.  I realized lately that I have been paying so much on interest only. I could hardly keep up anymore. I have been paying late fees from time to time. I am getting tired with how things are right now. I am having anxiety attack. I could barely sleep at night thinking how my present situation will affect my kids in the future. 
I made so much bad decisions financially in the past and I don't know how to correct it now. I feel so hopeless.  
Someone advice me to consolidate my credit cards but I am kinda afraid and hesitant to do it as it might have a long term effect in my kid's lives.
I know my credit score is bad now due to medical bills that went to collection and some late payments. I have this thinking that since my credit score is not good anymore, I would just go ahead and enroll to a debt consolidation program and get rid of all credit cards. Cut down on other expenses and live within my means. I know it will hurt my credit score more. Will this be a good idea? Am I really hopeless? Is there a way out in my situation right now? Thank you...

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From Dave Ramsey:

Baby Step 1: save up 1k for emergency
Baby Step 2: Pay off Debt Using the Debt Snowball Method

Now that you’re prepared to avoid future debt, it’s finally time to get rid of your current debt. Start by listing everything you owe except your mortgage. This is called the debt snowball method, and you’ll use it to knock out your debts one by one. You’ll order your debts by balance, smallest to largest. Don't worry about interest rates unless two debts have similar payoffs—then you’ll list the higher interest rate debt first.

Attack the first balance on your list by paying as much as you can each month while making minimum payments on your other debts. When you’ve paid it off, add what you were paying on it to the payment on your next debt and start attacking it. Your results will keep you motivated to dump all your debt.

Before you know it, you're debt-free! Millions of people have used Dave’s course Financial Peace University to beat debt for good.[/quote]

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