Jean Chatzky Quotes

A consolidation makes sense only if you can lower your overall interest rate. Many people consolidate by taking out a home equity line loan or home equity line of credit (HELOC), refinancing a mortgage, or taking out a personal loan. They then use this cheaper debt to pay off more expensive debt, most frequently credit card loans, but also auto loans, private student loans, or other debt.

When you default on a secured debt, the creditor takes the asset that backs up that debt. When you convert credit card debt to mortgage debt, you are securing that credit card debt with your home. That's a risky proposition.

In about one-third of credit card consolidations, within a short period of time, the cards come back out of the wallet, and in no time at all, they're charged back up. Then you're in an even worse position, because you have the credit card debt and the consolidation loan to worry about. You're in a hole that's twice as deep - and twice as steep.

While I encourage people to save 100% down for a home, a mortgage is the one debt that I don't frown upon.

Learn how to prioritize all your debt. And did you know student loan debt is the most dangerous debt any of us can have?

Homeowners who refinanced their mortgages took out cash and reduced their monthly payments at the same time. Much of the cash obtained by refinancing was spent on consumer durables, home improvements and the like.

Borrowing isn't inherently bad; it depends a lot on what the debt is financing.

But credit card debt is unsecured debt, which means if you get in trouble and cannot pay off your credit card, you can discharge it in bankruptcy. What are they going do to you? If you're in a financial position to just methodically pay off both credit card and student loans, pay them all.

Once you get into debt, it’s hell to get out. Don’t let credit card debt carry over. You can’t get ahead paying eighteen percent.

Credit cards are the WORST investment that you can make.

Pull in your belt, spend less, and reduce debt.

By teaching twenty-something year olds responsible debt management practices, we can help them create a balanced lifestyle and find peace of mind through increased financial awareness, smart saving and long-term investing.

Debt certainly isn't always a bad thing. A mortgage can help you afford a home. Student loans can be a necessity in getting a good job. Both are investments worth making, and both come with fairly low interest rates.

If you can't afford the upkeep of your home, it makes no sense to do a reverse mortgage. You will just end up having to sell eventually when you realize you can't afford the home, and whether you have any equity left after the sale depends on the size of the reverse loan that must be settled.

Families out there know that if they get in trouble and they've spent up a bunch of money and they've borrowed and they are up to hock to their necks, the thing they've got to do is start paying off what they owe and cut back their spending.

If you're trying to get out of debt, you have to be willing to treat everything as expendable.

I've always had an aversion to debt.

Too often, we make budget cuts - then blow the savings. Instead, think about your financial picture. Do you have high-interest rate debt? Paying it off faster will save you a bundle.

I fear debt. I don't like being indebted to banks. I have a rule in life that I will get it when I can afford it.

Bad debt is debt that makes you poorer. I count the mortgage on my home as bad debt, because I'm the one paying on it. Other forms of bad debt are car payments, credit card balances, or other consumer loans.

If you put a purchase on a charge card, you're paying it off forever. You have to know how to pay it off before you go deeply in debt.

Get rid of debt now.

As borrowers, we may feel guilty about running up debt, anxious about making payments, and resentful of the constraints that old obligations (and old credit records) impose on our current choices. We may find it too easy to buy things we may later regret.

There are but two ways of paying debt—increase of industry in raising income. increase of thrift in laying out.

You cannot continue to pay what you don’t have.