Risky Solutions to Debt Elimination

Taking shortcuts can lead to compounding woes

only extend the pay-off period and do not carry lower rates. Since interest on consolidation loans is often higher than personal loans, mortgages and home equity loans, you actually owe more in the long run.

If you consolidate your loans, Freeman advises to use caution. “Many [debt consolidation agencies] are flooded with scams, and lenders who charge exorbitant fees and offer no real solutions to your debt,” she says. Some consolidators add fees directly to your monthly debt payments, without notifying borrowers of the charges.

To help deal with debt, Freeman recommends that consumers establish a budget, develop a debt management plan, and consider credit counseling. Most importantly, use common sense by not spending money you do not have.

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  • Janet Montgomery

    What is the best way to get out of credit card debt of about 70,000?
    Single parent with one child, annual income 93,200.00

  • Mike

    The reason why we are where are today in the aspect of debt and credit is because we as society live beyond our means. Hopefully, there will come a point where the economy will get basic like it was many years ago. Cars will just be transportation ,homes will just be a place to live, clothes will just be something to cover our nakedness. It would hurt the economy even more, but this problem would never occur again and when we are all dead and gone our great grandchildren wont have to deal with the same mess. we did.

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