Today, more than ever, we struggle to avoid a mountain of debt. How do we do it? How do we keep ourselves out from under the thumb of the credit card companies? The bottom line is that to get out of debt you need to A) consolidate your debt at the best possible rate, and then B) pay down that debt with cunning financial management.
Financial gurus like Susie Orman tell us what we should or should not do. There are all kind of ads that offer debt consolidation. Some cost a lot of money while others are very affordable. For some, seeking the advice of a professional who understands the debt consolidation rate is the answer. For others, they’ll take the bull by the horns and figure it out themselves.
There are a lot of different ways to save money regardless of whether or not you choose consolidation for debt. You’ve no doubt heard the quote from Ben Franklin, “A Penny saved is a penny earned.” Just as sound advice, but not as often heard, are the words of Bill Gothard who said, “A dollar saved is a dollar sixty earned”. What Mr. Gothard was saying is that taking into account the vast array of obvious and secretive taxes, working expenses (gas, clothing, etc.), one needs to earn about $1.60 in order to have a dollar left over to spend.
How much do you think you have left after all those expenses today? This is why, as Susie Orman would recommend, we all need to look carefully at debt consolidation. A resource other than Susie Orman on practical ways to save money (and a great source of consolidation debt information) is by Alfred Munzert, Ph.d, “Poor Richard’s Economic Survival Manual” (Published 1982 by Hemisphere Publications). Dr. Munzert himself brought up a large family on a single salary and was still able to send each of his children to college. He used a wide range of strategies to make it all work. Worth a read!
So… Were to start? You need to look at debt consolidation as a starting point. Consolidate debt refinance or making arrangements for reduced payments to your creditors is one way to start the consolidation for debt process. If you need some impartial advice on the matter, call the National Foundation for Consumer Credit at 800.338.2227.
There is always bankruptcy. When things get real bad, some people use bankruptcy to seek some protection from creditors. You can file for bankruptcy yourself or you can hire a lawyer (we recommend a lawyer). Some go through bankruptcy (chapter 7 is common) and do the filing themselves. A common resource for those who want to file themselves is Kenneth Doran’s Book, “Personal Bankruptcy and Debt Adjustment” (published in 1991 – old so be careful; by Random House). It’s a straight forward text with a lot of the terms explained. (Click to link to read what Susie Orman has to say about bankruptcy.)
Please don’t ignore the option of debt consolidation. It’ll be your best first step. I hope some of the resources you find on this site help.
What to do next? Continue to explore this site and make sure you’ve educated yourself on all of your options.
(Please note that this information is provided for entertainment purposes only and should not be treated as professional advice. It is always smart to consult with a financial or legal professional such as Susie Orman before making any financial decisions.)
I need to ask Susie a specific Debt Settlement question.. I am troubled by a contract i am in and need to know if these companys work for the consumer.. . I know i will be paying $50 dollars a month for about 5 yrs..
what is in your idea of savings???? checking, saving accoint only,or reg C.D. also??
what is in ’savings’ that you talk about??
I was wondering how i could find out my credit score without having to join some kind of program online using a credit card.