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Debt Consolidation Tips By Suze Orman

Here Are Some Great Debt Consolidation Tips, With Video…

Debt consolidation seems like an insurmountable task. Many are intimidated by the idea of dealing with credit card companies, especially if they have defaulted in any way. However, Suze Orman has a plethora of information on this topic and she is sharing some of the most important details that may get you out of debt faster than expected. We took notes of some of the most important tips below. Be sure to scroll down for the full video, as she elaborates on each topic and takes some viewer questions, which could also be very helpful

Tips:

  1. Orman does NOT want you to go through a debt consolidation firm. She wants you to keep the middle man out, go to the credit company or collection agency directly and that will actually save you more money.
  2. Even if your credit card debt has gone into collections, you can still contact the collection agency and they will most likely settle with you. They would rather get something than nothing, remember that!
  3. Once you settle with the credit card company or collection agency, do NOT pay them with money from your personal checking or bank account. Pay with a cashier’s check or money order.
  4. You want to also make sure they will report the payment on your credit report as “paid in full”, stipulate that you do NOT want the words “settled”, you want “paid in full”.
    1. Before you send the check/money order to them, write this statement on it:
      1. “If this check is cashed, that makes this account (add your account #) paid in full.”
  5. If an agency purchased your debt from a creditor, make sure the creditor cannot come back and ask you for additional money. Ask to be “Released from the original creditor.”— Be sure to get this in writing.
  6. Keep in mind, it is possible to owe taxes on the settled money. Ask the creditor to please state, “I will not owe taxes on this money.”

Hopefully, you have found these written tips to be helpful,  it is a precursor to the info you will receive in the video below. If at any point you want more details, we have located a book called Negotiate & Settle Your Debts, which could also be of great assistance to you on your debt consolidation journey.

Don’t forget to check out our previous article, Suze Orman’s Money Saving Tips

Now watch Orman and let her break this stuff down for you even further…