Debt consolidation, equity loans, credit counseling, debt management plans, even Chapter 13 bankruptcy – it does not matter which of these debt programs you’re talking about. They all suffer from 1 fatal flaw, the number one dilemma that causes most people to fail at eliminating their debts through these tactics. Can you guess the difficulty?
It is almost certainly not what you are thinking. It is not the fees, interest rates, or the good quality of the organizations behind these debt solutions. No, the number one dilemma with most debt programs is that they need FIXED monthly payments with out exception. This major flaw is the principal reason that extremely few individuals make it by way of a credit counseling program or a Chapter 13 bankruptcy program.
Do you make specifically the same amount of cash each and each month? If you are like most men and women, the answer is almost certainly NO. It’s straightforward to realize why. Salespeople, for instance, frequently encounter ups and downs based on how significantly commission they earn from one month to the next. Seasonal workers expertise boom and bust times depending on the time of the year (feel retail workers getting lots of overtime around the holidays). Overtime hours come and go depending on business workloads. Component-time jobs may provide hours that vary widely from week to week. And so on.