Sometimes readers, will write the Prince Of Thrift with questions. Such was the case when Cheryl (not her real name) recently wrote and asked:
My DH and I are thinking of restructuring our debt so we can get out of debt and afford our current payments. Right now it's more than difficult to keep up. Do you have any suggestions about where we should start. There are so many companies, it's hard to know who to trust.
Thanks for any info you can share.
- Cheryl
As I always do in such situations, I am thoughtful of what they are are asking and answer to the best of my ability. Since, I am not a certified financial counselor nor do I have any other licenses, I have to be careful with what I say. I do try to refer them in the right direction. Below, is my answer to Cheryl:
Thanks for the email. Do not mess with any of these debt settlement places that advertise on TV or the net. If you can't get a debt consolidation loan through your bank or credit union, there is only one place to trust in Topeka. Consumer Credit Counseling. They are trustworthy and if I remember correctly the fee is only $20. The only thing is they can't do anything with your secured debts. Only your unsecured debts, will they be able get lower payments (paid through them) for you. It will however, put a ding on your credit report.
As for the debt consolidation, option, Dave Ramsey calls it debt CONsolidation, and for good reason. Most people that go that route, ends up using the freed up money to get more debt and then they are in worse shape then before. If you use debt consolidation, you must give up all other credit. The only debt you should have would be the one debt, that now has a lower payment and should have lower interest to.
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go ahead share your thoughts with me now, my ears are open. I'm always eager to hear what you think.
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