ro include if you take out a loan...you pay it back...Like a student loan...A good reason to teach personal finance in high school.
ro include if you take out a loan...you pay it back...Like a student loan...A good reason to teach personal finance in high school.
It is a viable option for people who have had medical events, divorces or some other life event which has significantly impacted their debt to earning ratio. For people who just got in trouble by overspending, it never works long term.I declared bankruptcy about 24 years ago. Took a few years to get back on my feet but I'm doing very well today and my credit score is over 800. I saw a free credit counselor. She worked for the state or county or something non-profit. She said bankruptcy would be my best way out.
The psychology is crux, as I understand it, of Dave Ramsey's debt snowball.I'd ignore calls to pay off the biggest debt first. It sounds good but it takes too long. You need to see results for encouragement. Say you have 4 (probably more but 4 for examples) debts, smallest to largest A, B, C, and D. The minimum monthly payments are A $47, B $81, C $108 and D$155.
You cancel cable TV, smartphone, satellite radio, newspapers, stop eating out and all the other things you learn in TTMM. That frees up over $300 a month and you start paying $347 a month on A instead of $47. It's quickly paid off and now you have $347 a month extra to add to B for $428 a month. In a few months it's paid off and within a year you've eliminated half of them. Now you have $536 a month for C, not $108. And on it goes. If you had started with D you'd still be paying on it and nothing would have changed except your austerity measures with no victories to show for it. Work from the bottom up. Winning repeatedly and rapidly is much more desirable and rewarding.
Employers can’t see credit score. They can review report and see troublesome history with credit (irresponsibility). If you don’t use credit then you are responsible as person who uses it and pays on time.oh Dave Ramsey and his no credit score theory; it may work for him but an average American needs a good credit score nonetheless, not just for borrowing but for insurance, renting and employment purposes these days too