Debt settlement and debt management are both tools you can use to solve debt problems. But they are very different. If you choose the wrong one, you could set yourself back in the quest for financial health. Before undertaking either solution, thoroughly understand each option.
Should you save money or pay off debt? For total financial health, you want to carry little debt and have savings for emergencies and retirement. But few of us get off to a perfect start. If you’re looking at a pile of debt and no savings, which problem should you tackle first?
You may be able to simply consolidate too much debt with a personal loan. You may have to bite the bullet and file bankruptcy. Or something in between.
What borrowers see as debt forgiveness the government may well define as “imputed” income. And consider your canceled debt taxable. This can make ignoring debt more expensive than you think.
It’s nice to be able to pay in cash for everything. But sometimes, it makes sense to borrow. Personal finance experts say that some debt is good debt. Here’s how to tell when personal loans are a good choice.