Tips and Advice on Debt Reduction

Tips and Advice on Debt Reduction - Good debt management is something many people has to learn because mishandling debts is one of the factors that can leave a person eventually filing for bankruptcy.

While there are many financial advisers and financial institutions that offer advices on debt management, Suze Orman tips seem to gain the most followers because of her popularity. Some of her tips are the following:

• One of the Suze Orman debt reduction tips is to avail only of loans with low interest. While this is still a loan and can still add up to the expenses, this can be useful in paying up older debts by borrowing from financial institutions with lower interests.
• Another practical Suze Orman debt management advice is to avail of cash advance instead of salary loans. This is rather a simple strategy enough and usually do not require any requirement from the person. Doing this means that you will have the money that you can use in the future without enforcing the additional burden of interests that can only make the financial situation worse.
• One of the things to better debt management practice is to say no to such things as credit cards and similar other credit expenses. These only open doors to more expenses whose only effect is to increase one’s debts. This is a practical piece of advice that many people do not realize that behind that glittering card are some very undesirable effects like mounting debts that can give you sleepless nights.
• One of the things that some financial institutions offer to people with multiple debts from various institutions is a debt consolidation plan. This plan seeks to put together the various debts in one big account in the guise of making it easier for people to pay their loan because it is now only under one agency instead of multiple agencies as before.
• However, Suze Orman cautions against this system as it is only likely to increase the financial burden on the person. According to her, debt consolidation actually works differently. While it may seem that the prospect is better because the loans are combined as one, the truth is that debtors are forced to pay more in terms of interests especially since the agency will also charge for their services.
• Needless to say, debt consolidation can also be a messy process because some companies that combine several debts sometimes fail to efficiently manage the debt of their clients to the extent that the client suffers financially.