Frugal Tips

Frugal tips for all. Simple ways to save and earn.

If you suffer from debt and are looking for the best debt relief solution to solve your problems, remember that there are a few “solutions” which you should stay away from.

If you are looking for ways to get out of debt, what is the last thing that you want? Yes, to get into more debt. While it is usually a good idea to seek for some professional help, credit counselors who charge too much and want you to pay upfront are not your best option. There is plenty of non-profit organization which offer their help free of charge, so why pay for something that you can get for free?

If someone convinced you that paying the minimum payments on your credit card is good enough, don’t ever listen to this person again. Minimum balance payments can keep you in debt forever, so credit card companies are simply in love with them. The smaller payment may seem like a great idea, because you have more money to blow and you feel like you are doing something to eliminate your debt. Well, the smaller your payment is, the longer it will take you to pay off your bill and the more interest you will end up paying to your credit card company.

If you own a home you possibly considered borrowing some money towards its equity. While this may work in some cases, it is very risky, because if something went wrong, you would end up loosing your home. Do you really want that?

Another debt relief solution to avoid is filing bankruptcy. Filing bankruptcy is a bad idea for many reasons:

First of all, not all your debts are going to be wiped out. It will be almost impossible for you to buy a home or a car (unless you pay with cash) in the future. Filing for bankruptcy is the worst thing you could do to your credit history.

If you decided to change your life and eliminate your debt, good for you! But remember to be very careful while searching for debt advice. Filter all the information you are getting from the Internet, your friends or your family, do plenty of research and if you are determined to clear your debt, I am sure that you will.

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