Are books to get out of debt a scam?
Lately, you might turn on the TV late at night and watch an infomercial for a new book on getting out of debt called Debt Cures. In the infomercial, Kevin Trudeau makes some pretty big claims about how to reduce or eliminate his debt, how to cut his credit card payments in half, and how to fix your credit with two magic words. It almost sounds too good to be true. This article will take a look at some of the books designed to help you with your debt problems.
Millions of people are in debt and the problem is getting worse as the economy plunges into recession. People are being laid off with no income to pay their mortgage payments, sometimes losing their homes. What a perfect time to start selling a book that promises to get people out of debt almost overnight.
However, just like with weight loss, there is no quick fix or diet pill that will instantly make you lose 20 pounds in a week. The same idea applies with getting out of debt. It will take hard work, discipline, and sacrifice to lose weight as well as reduce your credit card debt.
With all that being said, I have used the ideas in Debt Cures and The Total Money Makeover to get rid of almost $3,000 of debt in just two months. I’ve also managed to save $1,000 in an emergency fund to help with those rainy days when the car breaks down or the kids have a big medical bill.
Most debt books say the same thing, all you have to decide is which method you want to follow. Dave Ramsey in The Total Money Makeover advocates using a debt snowball to pay off his debt. This method causes you to pay off the credit card with the lowest balance first instead of the highest balance or highest interest rate. There are several personal finance authors who say pay the highest balance or the highest interest rate first.
I chose the lowest balance first because I see results faster and stay motivated. And I’m only a few months away from finally paying off my Discover card.
Debt Cures can help you if you are seriously behind on your payments. You can try to negotiate your debts or if you are a few years behind, you may find that the debt has passed the statute of limitations where you are no longer obligated to pay it at all. These two ways can help you reduce some of your outstanding debts.
In conclusion, I would have to say no, personal finance books that have sound principles are not scams. The thing to remember is that the book will not do all the work for you. It’s just a tool. You have to pick it up and use it for any book to work.