Consolidating
You know back in 1989 when I lost EVERYTHING, I realized a very valuable lesson. Number one, don’t give up. There IS a way out of debt if you don’t lose your head and just give up.
A couple of things I did that worked were, consolidating some of my credit card debt. I got a cash loan to pay off ALL of the little credit cards. I had a $500 one here, a $300 one there a $1500 one here, and a $2000 one there.
I borrowed $5,000 to pay these off. The interest on the loan was much lower than the the interest on the credit cards and the total loan payment was lower than making over 5 other payments. Anyway… there is a really cool DebtWizard here that will help you see how much money you can save every month if you just consolidate all your credit card bills and get a loan to pay them off. Try it out here!
Another thing I did to help myself! I needed to build new credit so I borrowed $5,000 from a relative and told them I would give it right back the next day.
I went to the bank and bought a $5,000 CD on a 2 year note. Then I turned around and borrowed $5,000 against the CD on a 2 year note. Doing it this way gave me a loan at about 3% total.
Then I took the loan money and paid back the relative. Then I paid on my loan for the 2 years. After that, my $5,000 CD was free and clear, so I did it again. I borrowed against my CD so I would have $5,000 cash to pay off some bills, then paid on the loan for another 2 years.
Doing this way, I always had a backup of $5,000 in the bank.
Do something this year to pay off those credit cards!
rebecca 