Ask Terry Questions Girlfriend in debt

Girlfriend in debt

By Terry Savage on November 12, 2018 | Credit/Debt

My girlfriend owes approximately $35,000 that is car and two credit cards. She is 45 and is drowning in the stuff.
What a suggestion of getting a consolidation loan to lower her payments or borrowing from her 401 K looking forward to your reply

Terry Says

My first suggestion is to YOU: Don’t get married! You will drown together and destroy your own good credit.
Instead, have her immediately contact the National Foundation for Credit Counseling. If she calls 800-388-2227, she will automatically be connected to the nearest local office. They are helpful, non-profit, and can get the job done.

Do NOT let her fall for a credit consolidation service, which will totally ruin her credit — and charge fees while they redirect her payments to a “settlement fund” so they can make an offer to the card issuers. In the meantime, her credit worsens –and her wages could be garnished.

And she should NOT take money out of her 40l(k) in the form of a loan, or she will be a bag lady in 20 years! This is the time for her to get a second job — while there is demand for workers and she is young enough to work. It might be something less meaningful than her current job — waitressing, or childcare or doing chores for a senior. But every penny extra she earns should go toward her debt!



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