How to get out of debt and stay out. What is most important? The last two words of the title.
Mental Attitude Is Everything
I cringe whenever I see the question about ways to beat debt “but won’t that damage my credit rating?” These victims of debt may be beyond help. Pardon me while I scream –
BAD CREDIT RATING IS GOOD FOR YOU.
There – that’s got that lot off my chest. You only need good credit rating if you want to get into debt. If you have difficulty staying out of debt at first, a bad credit rating is your best friend.
Debt Consolidation Loan
Warning: without an attitude change, bad credit consolidation loans will only make matters worse. If you are addicted to debt, I suppose an easy way to add to your debts might please you.
Are you determined to turn over a new leaf, and stay out of debt? Use a consolidation loan to get out of your student debt first.
There are very nasty laws afflicting you if you default on your student loan.
But if you default on a consolidation loan, normal laws apply.
So try to pay your student loan with a consolidation loan.
Loans To Pay Off Debt
If you’re not familiar with the idea of borrowing to get out of debt it may seem very strange. What you are doing is getting out of debts with very harsh terms, and moving into debt that you can plan to eliminate soon.
How To Pay Off Credit Cards Fast
Did you know that credit cards often charge more than 20%? Did you know that Store Credit Cards may charge 30%? If you take three years to pay a loan at 30% compound interest, the interest will have doubled your cost.
Just now, the government has a ZIRP policy (zero interest rate percentage) that was supposed to boost productivity but failed. The Japanese went one step further with NIRP (negative interest rates percent), and that too failed spectacularly. That means that today lenders will give you a loan to consolidate your debt without any hesitation. When this debt bubble bursts, it will be difficult to get loans. So at least borrow enough to pay off debt fast and exterminate the student debt, and possibly your credit card debt before it’s too late.
I shouldn’t really poke fun at bankruptcy. Only defaulting on a student loan is a worse financial disaster.
There are two ways to give up on debt repayment, only one of which is official – bankruptcy. You can NOT get out of a student loan debt so easily. Get a consolidating loan first. If you ever want to borrow from lending sites again, avoid going bankrupt.
If you want a good permanent job, avoid going bankrupt, but permanent jobs are disappearing, and freelance employers don’t want to know your history.
The unofficial way is to disappear. (Don’t try it if you owe money to the government. Consolidate first.) It’s good to disappear anyhow, and if you are fit and healthy, you can become a perpetual traveler.
You can read all about it – how to live on $20 per day with a lifestyle that the rich would envy if you click here. You’ll discover how to get out of debt and stay out.
Or you could go back to the home page for managing money tips.