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Debt is easy to get in–and hard to get out of. Most Americans acquire debt with intentions on paying it back. However, sometimes life happens and things don’t always go as planned. Financial guru Dave Ramsey has many tips on how to get out of debt–and stay out of debt. Check out the empowering video above and be sure to share. Below are 5 popular debts and tips on how to get out of it:
Student Loans. You’ve probably heard that you have to go school to get a good job. What most don’t mention is that if you take out loans to go to school, you’ll most likely spend over a decade paying that debt back. Instead of taking out student loans, pay cash for your classes.
Car Loans. Purchasing a new car is a very expensive way to own a car. Once you drive that new car off the lot, it immediately depreciates in value. Purchasing a used vehicle is a smarter choice.
Credit Cards. The “buy now, pay later” attitude has millions of Americans in debt. What really happens is that people borrow more than they can pay back, and then get stuck in a cycle of just paying the monthly minimum. What happens is that the interest starts accumulating and they never get out of debt. You can pay off your debt QUICKER by doubling up on the monthly payment, using your income tax to pay off the debt, and by most definitely cutting up the cards.
Home Loans. Sometimes when people take out a loan on a home, at that time–they can afford it. But sometimes, if a person loses their job and their income changes, that home can become a huge burden. For you can’t really afford to buy a house–don’t. Nothing is wrong with renting.
Medical Debt. A trip to the hospital can easily get expensive. An operation can cost thousands of dollars, even with insurance, and most people can’t pay that back. What ends up happening is people don’t pay and that debt ends up damaging their credit score.
Good luck and I wish you much success with this.
-Farlin Ave (@farlinave)