After explaining why you're in trouble, ask the creditor if the company would be willing to accept a smaller amount. Start negotiations at about 30% of the total amount due, with the end goal of paying 50%. — Jean Chatzky Copy Share Image
Get your friends involved. Let your shopping buddies know that you're on a tight budget, and they can help you out when your willpower… — Jean Chatzky Copy Share Image
You must be sure - and I mean absolutely positive - that you have the willpower to pay off those credit cards and not… — Jean Chatzky Copy Share Image
The Bankruptcy Reform Act of 2005 made it harder for individuals to file bankruptcy, which is always the last resort. Unfortunately, simultaneously consumers racked… — Jean Chatzky Copy Share Image
Save for your goals. Take note of what's coming your way - vacations, the holidays, what ever is going to cost you money -… — Jean Chatzky Copy Share Image
Turn down offers for new cards or credit line increases on your current cards. Credit's tight, and chances are, you're not getting many offers… — Jean Chatzky Copy Share Image
When you default on a secured debt, the creditor takes the asset that backs up that debt. When you convert credit card debt to… — Jean Chatzky Copy Share Image
A consolidation makes sense only if you can lower your overall interest rate. Many people consolidate by taking out a home equity line loan… — Jean Chatzky Copy Share Image
Sometimes a creditor is willingto do this as a bargaining point - you give the creditor cash in hand, it gives you a positive… — Jean Chatzky Copy Share Image
Debt settlement companies work as a middleman between you and your creditor. If all goes well (and that's a big if), you should be… — Jean Chatzky Copy Share Image
You also need to understand that when you consolidate credit card debt into mortgage debt - like a home equity loan or a HELOC… — Jean Chatzky Copy Share Image
![“You also need to understand that when you consolidate credit card debt into mortgage debt - like a home equity loan or a HELOC [ home equity line of credit ] - you're taking an unsecured debt and turning it into a secured debt.” quote by Jean Chatzky](https://sms4smile.com/quotes/img-quotes/e84/jean-chatzky-15313_cards_you-also-need-to-understand-that-when-yo_1363945.jpg)