8/15/112 I'm making some changes, see if you can tell what...LM
The 5 Dumbest Things You Can Do If You Have Too Much Debt
If you’re struggling with too much debt you’re not alone. It seems as if the whole nation has a borrowing hangover. For years, credit was easy and many people became overextended. But, we now live in an era of austerity and it’s time to get our affairs in order.
The first advice of experts in the field is to be sure you don't make your situation worse by making common mistakes. In particular the five strategies you may want to avoid:
Paying only the minimum payment on your debt, as this will result in the amount you owe actually growing, and your problems will only become worse. They're right here, although for many people the minimum is all they can pay, for some even this is too much. But the truth is that much as they preach against making only the minimum payment, they're hoping and praying this is all you do pay each month, because they know that you'll be paying the rest of your life and thousands more in interest. It's the key, together with dependence on your cards, to making you a slave. That's right a slave to the banks.
Relying on friends and family, as this can damage relationships with the most important people in your life. This goes without saying really. You borrow money that you can't pay back. It ruins friendships and families.
Unscrupulous credit counselors that demand cash upfront, or high fees for help they promise, but don't deliver. Another one that goes without saying. THESE PEOPLE ARE THIEVES!!!! They sound good, they tell a great story, they even make good sense. But they're thieves, trying to get your money. You're already having financial problems, can't make your payments, house being forclosed, whatever, and somebody calls offering to solve your problems if you agree to pay a couple to a few thousand dollars, does that make sense? It does if you're that company or that telemarketer, they get your money, all you get if deeper in debt, as Tenessee Ernie Ford sang, you'll owe your soul to the company store...
Using new high-interest loans to pay off lower interest rate loans--while it may be easier to just have one payment, it will actually increase the amount you have to pay back. I did this, it doesn't work, period.