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
















