“The debt settlement company will direct you to stop paying your creditor and instead send the money directly to them each month. The company's goal is to demonstrate to your creditor that you don't have the money to pay up - that's your leverage. After a few months, the company will typically go to the creditor and say, "I'm holding X dollars on behalf of your customer. He doesn't have the money to pay you, so you should take this amount as a settlement or you'll end up with nothing." If the creditor wants to get paid badly enough, it will take the money.” IfsWantShouldEndsEnoughGoalPayCompanyMonthsAmountDirectPaidDollarsDebtCustomersBehalfSettlementCreditorsEach MonthDebt Settlement Author:Jean Chatzky
“If you're filing bankruptcy, you will likely want to hire an attorney. But for debt settlement, a company is sufficient, or as I said, you can often do the legwork on your own.” IfsWantSaidCompanyDebtSufficientAttorneySettlementBankruptcyFilingDebt Settlement Author:Jean Chatzky
“You fall a bit behind on a credit card bill, your interest rate soars, your minimum payment rises, and you start falling more and more behind every month. You don't see an end. But you don't want to file bankruptcy either. What you can do - and should do - is negotiate.” WantShouldEndsFallBitsInterestCan DoBehindsMonthsBillsRateCreditCardsMinimumSoarFilesPaymentCredit CardBankruptcyInterest Rate Author:Jean Chatzky
“One thing I want to make clear: You never want to hide from your debts. It doesn't work.” WantClearOne ThingDebt Author:Jean Chatzky
“Pay cash. For some reason, it's harder for people psychologically to part with their cash than it is to swipe a card. Maybe it's the act of physically seeing the money change hands, or maybe it's because you don't want to break a $20 for a $2 cup of coffee.” PeopleWantReasonHandsPayBreakSeeingHarderCoffeeCardsCupsCashCoffee Cup Author:Jean Chatzky
“In fact, the bigger the bill, the less likely you are to spend it. If you want to really save money, spend only cash and carry only fifty-dollar bills.” IfsWantFactsBiggerBillsDollarsFiftyCashSaving MoneyDollar Bills Author:Jean Chatzky
