the debt settlement companies make money, the credit card companies get their money, and you are saddled with a rotten credit rating which will take a loooonnnggg time to fix.

Prioritize spending to pay off debts: Business Comment of the Day

By Mike Rose, cleveland.comThe Plain Dealer
on November 05, 2012 at 8:28 AM, updated November 05, 2012 at 9:35 AM

 

Associated Press file

In response to Sheryl Harris'

Almost went this route. I started digging deeper, and found the debt settlement companies make money, the credit card companies get their money, and you are saddled with a rotten credit rating which will take a loooonnnggg time to fix.

First step: STOP SPENDING.

ProTip: Prioritize your spending. If you can, look at your credit cards and see how long it will take you to pay off the account if you make the minimum payment versus the monthly payment to pay the debt off in three years. It was an eye-opener for me, and helped me formulate a three year plan.

 

A credit card is actually a debt card. The more you use it, the more debt you have.

 

Benjamin Franklin revealed the solution in 1758 in his essay, "The Way To Wealth"-- that is:

(1) Industry, or earn as much as you can;

(2) Frugality, or live below your means; and

(3) Prudence, or avoid buying on credit and buy necessities, not wants.