I was working two part-time jobs at one time and I had gotten some loans. I was making enough to pay for them and than unfortunately I was let go of one because it was only seasonal. I was hoping by that time my current employer would give me more hours however it went down. Now I am ending up getting high interest loans to pay other loans and ending up getting payday loans to help me pay for those loans. I feel I am getting drowned and I don’t know what to do.
I have been going to these debt consolidation places and they keep telling me the best thing is to get a debt settlement. Is that the best thing to do?
Well first off, you’ve got to expect in advance that a debt settlement salesperson is going to be biased about selling you their widget. So the fact that several debt settlement places have pushed you towards debt settlement doesn’t really mean it’s the best solution for you.
Getting loans to pay loans is almost always not a settlement situation. It’s a bankruptcy situation.
Let’s start with the basics.
I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Then use the free How to Get Out of Debt Calculator to review your options.
After that, come back here and comment about what seems to make the most sense and let’s discuss that.
Please post your responses and follow-up messages to me on this in the comments section below.