Managing debt or being debt free
We’ve all heard the same advice about paying down credit card debt: Pay the minimum on cards with the lowest interest rate and funnel all excess money to the one with the highest balance, once that’s paid off repeat the process. That’s sound advice. So why are so many people still struggling?
Well, it might be sound advice, but as always, it’s easier to give advice than it is to follow it. If you are struggling to credit card debit where are you supposed to get this extra money? I’ve heard borrow from your 401(k ), Get a home equity loan, (although I don’t know how smart it is to get a secured debt to pay off an unsecured debt , but I’m not expert), borrow against your life insurance, cash out your savings account etc… Chances are that if you have these options you are not drowning in credit card debt.
So, what can you do? § Read the rest of this entry…
