Suze Orman

Get Out of Debt Special


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Get Out of Debt Special

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

Log on to annualcreditreport.com or call 1-877-322-8228.

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