View RSS Feed

Frugal Living Blogs

Get Out of Debt sites- that Charge a Fee

Rating: 4 votes, 5.00 average.
This mornings post is more of a Pet Peeve than a frugal tip, (Sorry folks!). Lately, I've received more than 60 link requests to the site and several posts to my discussion list and forums of sites that are "Offering to help get people out of debt"... but wait.. there's a catch!
You knew there would be, didn't you, my savvy reader...
The catch is, one must spend $10-500 to get out of debt!

I'm sorry, but if you are already IN DEBT, how exactly is paying some fool $10-500 of your hard earned money going to get you OUT of debt?? Seems to me, these fools are putting people deeper into debt.

To get out of debt, one must simply create a budget that he or she can live with, find a few areas in your life where you can reduce your expenses, and apply that money to your back debts.

For me & my family, it was the grocery bill. The average American family of 4 spends $600+ per month on groceries alone. In our home, we spend an average of $250 a month. Once I was able to drop that bill from $600 down to $200-250, I applied the savings (the amount I was already used to spending!) to pay off back debts, to the tune of $350-400 a month!

Folks, seriously, you don't have to pay some yahoo money to learn how to get out of debt. You need to sit down, write down all of your expenses, figure out exactly where your money goes and then determine where/what you can save and pay off first.

I remember an old saying that I once heard back in high school, "If you can tell the difference between Good Advice and Bad Advice, you don't Need advice."

~Liss
Budget101.com - complete resource for digging yourself out of debt

Submit "Get Out of Debt sites- that Charge a Fee" to Facebook Submit "Get Out of Debt sites- that Charge a Fee" to Twitter Submit "Get Out of Debt sites- that Charge a Fee" to MySpace Submit "Get Out of Debt sites- that Charge a Fee" to Google Submit "Get Out of Debt sites- that Charge a Fee" to Digg Submit "Get Out of Debt sites- that Charge a Fee" to del.icio.us Submit "Get Out of Debt sites- that Charge a Fee" to StumbleUpon

Categories
Random Thoughts

Comments

  1. MoodyBluz's Avatar
    Kudos to you for saying the truth. I tried a dave ramsey group and it was retarded. Get out debt, just pay hundreds of dollars for pu classes.
  2. danghsia's Avatar
    that just simply stupit
    To get out of debt first pay me money LOL

    but people always fall for that thing
  3. coupon864's Avatar
    You can do a search to look for an excel calculator to download that will help decide which to pay off in what order. The one I downloaded, allowed you to enter up to 5 debts with balance and percentages. It asked how much you have to pay off each month. You then order the debt 1 to 5 and it will advised how long it will take to pay off and a dollar amount. The goal is to find the right combination that will provide the quickest or lowest cost depending upon your goal.
  4. Liss's Avatar
    You can do a search to look for an excel calculator
    No need to search, there are debt calculators right here:

    Budget101.com - - Credit Card Calculator

    Budget101.com - - Renting vs Buying Calculator

    Financial Calculators:
    Budget101.com - - Money and financial articles | Debt Reduction Resource
  5. opal1973's Avatar
    I always thought these sites went along with the banks that offer you a credit card but make you pay all these fees to have it! By the time you're done paying the fees- you only have a few dollars of 'credit' to use! It's totally insane! If you have that kind of money to throw away---why didn't you just pay off the old bills that made your credit low to begin with? LOL
  6. MsDebbie's Avatar
    I called one of these debt relief organizations and they were simply a savings/trust mediator. You pay them a monthly amount (for me $750) and when they have enough to mediate with your creditors they make an agreement and pay them on your behalf - thats it! I told him I could do that myself since I already had offers of up to 80% off original debt. His simply stated it was easier to have someone do it for you. No thank you!