Dave On Debt

DON'T loan money to a friend or relative; the relationship will be strained or destroyed.
DON'T co-sign a loan for a friend or relative. "It's stupid to guarantee someone else's loan." Proverbs 17:18 CEV. The bank requires a co-signer because the person isn't likely to repay, so be rady to pay the loan and have your credit messed up.
Cash Advance, Rent-to-Own, Title Pawning, and Tote-the-Note Car Lots are horrible, greedy rip-offs that aren't needed and benefit no one but the owners of these companies.
Staying away from car payments by driving reliable used cars is what the typical millionaire does. That is how they became millionaires.
Consumer Reports, Smart Money Magazine, and a good calculator will tell you that the car lease is the most expensive way to finance and operate a vehicle. The way to minimize the money lost on things that go down in value is to buy slightly used. A new car selling for $28,000 on average will lose $16,800 of its value in the first 4 years, making it worth about $11,200. You are losing about $350 per month in value! Why do dealers push leases? The typical new-car sale nets the dealer only $82, but if you lease it the dealer's profit is between $1,000 and $1,300!
How much could you save, invest, blow, and give if you had NO PAYMENTS?
The Home Equity Loan is NOT a good substitute for an emergency fund. Don't go into debt for emergencies.
That debt is a tool to be used to create prosperity is a MYTH! Debt is proof that the borrower is slave to teh lender. The Forbes 400 were asked "What is the most important key to building wealth?" 75% replied that becoming and staying debt free was the number one key to building wealth.
If you MUST borrow money, borrow on short terms and only borrow on items that go up in value. That means never on anything except possibly a home, which you should pay off as soon as possible. For example, if you were to finance $80,000 on a home at 10%, a 30-year mortgage would run you $702 a month for a total of $252,720. A 15-year mortgage would cost $860 a month, just $158 more, but you would save $97,920 in interest. If you already have a 30-year mortgage, pay one or two extra payments a year to be applied to the principle. A $100,000 10% mortgage would pay off in 21.1 years just by paying one extra payment a year.
Never take more than a 15 year fixed rate mortgage loan.
You don't need to take out a credit card or car loan to "build your credit." With a 20% down payment, not buying too much house, 2 years or more on the job, and 2 years of paying your landlord early, you will qualify for mortgage. Don't fall for the lie! Open credit card accounts with zero balances count against you as well as car payments when qualifying for a home mortgage.
Debt consolidation is a con. It typically saves little or no interest because you will throw your low interest loans into the deal. You can't borrow your way out of debt. Smaller payments equal more time in debt.
Check your credit report once every two years. Over 52% of the national reports have errors. Here's why you need a good credit report if you're not going to borrow any more: A potential employer may pull a credit report as an indication of character. You may need a good credit report to rent a home or qualify for a short-term mortgage.
If you have bad credit or are just starting out, don't borrow to create a good credit report. Simply pay what you own on time, even if it is only rent. A clean period of time, with all bad debt made good, a decent down payment, and a steady job record is enough to get you approved for most mortgages. DO NOT borrow to build or clean credit.
Pay necessities FIRST, then unsecured debt. Collectors are taught to "evoke strong emotion" like anger, fear, hate adn even friendship so that you will act illogically and pay an unsecured creditor before the utilities or house payment. The approach that works on you is stored in their computer and will be tried again and again until it stops working. 95% of the unreasonable conversations you will have with bill collectors are bluff and based in ignorance.
The best and most honorable way out of debt is with a plan. You and your spouse set your goals, work hard, work often, live on little, and get out. The best way for your creditors to get paid is for you to take control of your financial destiny.