Tuesday, February 20, 2007
Debt
Dear Pud,
I'm $25,000 in debt. I've got to get out of it.
I've got around $10,000 in cash. I don't want to go bankrupt, but I see no other way out.
Help me!
Kathy
32 years old
Orange, CA Kathy,
Firstly, cut up your credit cards. Remove them from your wallet right now and destroy them. I am taking away your credit card privileges. Use your debit card instead. That way you'll only be able to buy stuff you can actually afford.
If you think you need a credit card for emergencies, get an American Express. They make you pay the full balance each month and don't charge interest.
Secondly, call your existing credit card companies and tell them your situation. Many of them will let you settle your debt for less than you owe (i.e. give them your $10,000), or they might give you a much lower interest rate.
That said, it's not so terrible to owe money. It's nice to spend other people's money. Most people are in debt, including rich people.
While walking past a homeless man outside one of his buildings, Donald Trump once told his daughter, "technically, that man has more money than me."
Pud
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