Best answer from question by Rosie:
Answer by Judy
Can you imagine making so little that in 10 years you still can’t pay off your student loans?
Don’t use her as a mentor. Sounds like she has refinanced those loans a bunch of times.
The main idea in life is to live debt free, no matter what the debt.
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Best answer from question by Jeff:
Answer by Lester
Great question. Debt Consolidation refers to taking your unsecured debt and combining the amount owed into one monthly payment with the goal of saving money and getting out of debt faster.
The three most common types are:
- Debt Management: For people that are about to fall behind
- Debt Settlement: For people that are behind
- Bankruptcy: For people that will never get back
Typical debt consolidation options can save you anywhere from 30 to 60% on what is owed especially when you factor in high interest rates (anything above 15%). It will also, typically, get you out of debt in 2 to 5 years. This is much faster than paying off minimum balances that can take over 20 years.
Before entering into a debt consolidation program, you should definitely speak to a councilor to get information about what will work best for you. Here is a great website (.org not .com) that has free help, articles, and information on debt consolidation:
http://www.debtconsolidation.org