Oi Vay!

I enjoy reading through different articles on how to handle debt. Most of them are decent and offer generally good advice on ways to what to do. BUT, one that I read recently is completely off base and all wrong. I had to offer a rebuttal on the three steps needed to "Get Out of Debt".

DEBT CONSOLIDATION LOAN
#1 - No one ever got out of debt by borrowing more money! As a loan officer at a local bank, I always qualified "debt consolidation" customers by adding in their new payment along with all of their old payments - together - as though they never paid off the credit cards! Why would I do that? Because most of them would never change their behaviors and would be back in to see me in another year with the SAME problems! A lower payment may be enticing initially, but, in most cases, the payments are stretched out farther and you will pay more in interest than if you just buckled down and paid off the debt that you have now!

SETTLE YOUR DEBT
#2 - Debt Settlement messes up your credit! When you make an aggressive settlement with a creditor, it will show on your credit as "settled for a lesser amount". This reflects negatively within your credit scoring because you have not paid your debts "as agreed". This is not a way to work your way out of debt. It is a tactic used by credit counseling services who will handle the negotiation process for you. It is NOT a way to "Beat Debt".

USE A CREDIT COUNSELING SERVICE
#3 - Beware of Credit Counseling Services! You don't need the assistance of a Counseling Service to help lower your credit card interest rates! You can make a phone call and, if you are current on your payments and have not had a "late pay" in a while, they will work with you! Make this call yourself and save the fees charged by the services!

The Sacks Group created "The Compass Project" to help TRAIN families on how to better handle their own finances. We work with families every single day who (1) understand that the monies they borrowed are an obligation that they need to pay and (2) want to change the habits and behaviors that have gotten them into financial difficulties!

We work with families for a flat monthly fee to get them back on their feet again! Something lead you down the road to financial struggles - habits or circumstances - and we are here to help establish a new way of living and hand it right back to you after the dust has settled!

Don't fall for these "Credit Counseling Services" or these commercials about how you deserve to have your credit card balances lowered! Your credit will be ruined and they will charge significant fees for a service that leaves you in worse shape than before you began!

Contact us today and let us know how we can help you!