Try google(ing) debt free sometime and you’ll be amazed at what you see! Between sponsors and the top ten hits you’ll find virtually 100% offering you a way to borrow your self out of debt.
Think about that strategy for a moment. You owe money. If you borrow more money you’ll owe either the same amount or more money than when you started.
How in-the-heck can borrowing money get you out of debt?
That’s the insanity of the “pitch” these guys are throwing at you. They’ve got several ways for you to borrow more money to consolidate your debts. Here’s two secrets to this strategy these guys don’t want you to know.
First, these guys are the bad guys. They’re the Big Bankers! You already owe the Big Bankers money and now they want to loan you more money!
Second, consolidating your debt is a really bad idea for one simple reason. Let’s say you have 10 credit cards with minimum payments ranging from $15 - $250 dollars. Lets further estimate your total monthly minimum payments are $2,200 dollars and its tough making those payments.
If you consolidate you’ll have one payment. Even if you’re able to reduce your overall payments say $200 a month you’ll now have to come up with one payment of $2000 a month instead of 10 smaller payments.
It’s a heck-of-a-lot easier to stagger $2,200 dollars in bills a month than to fork over one big giant payment!
The other problem with consolidating debt is it’s really tough to pay it off early. It’s a lot easier to pay down debt with 10 individual cards using the $15 dollar a day strategy (see previous post for details).
David
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment