Get Out of Debt Special

Debt, Money, Personal Finance

KEYS TO GETTING OUT OF DEBT

  • Always pay more than the minimum required on credit cards
  • Reduce interest rates

PAY DAY LOANS – SUZE SAYS

  • There are times when unconventional wisdom makes sense
  • It is better to take cash advances on a credit card rather than taking out a pay day loan at a very high interest rate
  • If you are paying an extremely high interest rate on a pay day loan, consider taking a loan from your 401K to pay off the pay day loan

DIFFERENCE BETWEEN DEBT CONSOLIDATION COMPANIES AND DEBT MANAGEMENT PROGRAMS

*DEBT MANAGEMENT PROGRAM – AN ORGANIZATION LIKE CCCS (CONSUMER CREDIT COUNSELING SERVICE)

  • The type of company Suze likes
  • A non-profit corporation that looks at your financial situation, provides classes to educate you and puts you on a debt management program where you pay them and they pay your creditors. The fee is usually $5-$15/month
  • Does not hurt your FICO score

*DEBT CONSOLIDATION COMPANY

  • Suze: “Say no to this type of company”
  • Tells you to stop paying your credit cards
  • Ruins your FICO score
  • You look horrible on paper, so they settle for a fraction of what you owe
  • Creditor usually agrees
  • You pay $700-$800 up front
  • You might even pay $100-$200/month in fees
  • You also have to give them a percentage of the discount they negotiated

*EVERYONE IS ENTITLED TO A FREE CREDIT REPORT FROM EACH CREDIT BUREAU

Suze Orman

No TweetBacks yet. (Be the first to Tweet this post)
Share and Enjoy:
  • Digg
  • del.icio.us
  • description
  • Facebook
  • Global Grind
  • Google
  • LinkedIn
  • Live
  • MySpace
  • Print this article!
  • Reddit
  • Slashdot
  • StumbleUpon
  • Technorati
  • TwitThis
  • Yahoo! Buzz
  • YahooMyWeb
1 Comment

1 Comment

  1. Julius A. Titus  •  Dec 24, 2009 @5:09 am

    Hi, probably this posting could be off topic but anyways, Having gone surfing around your website and it appears genuinely awesome. It is obvious that you know the subject and you seem fervent about it. We are building a new weblog plus I’m struggling to make it look good, and offer the best website content. I’ve discovered a good deal at your website in addition to I anticipate more posts and will be coming back soon. Thanks you.

Leave a Reply

Allowed tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>