Debt settlement

**markwaugh3** · 08-03-2010, 11:20 PM

Hi,
I am new to this forum. What are the situations that take an individual into debt settlement? How to avoid such situations?

**Evan Bedard** · 08-04-2010, 06:29 AM

I am new to this forum. What are the situations that take an individual into debt settlement? How to avoid such situations?

Almost any type of situation where a borrower has obtained more debt then they can handle may leave them in a position where some sort of relief is needed. This can come in the form of credit cards or even a second mortgage loan on a home. The best thing you can do to try and avoid these issues is to make sure you do not acquire more debt then your budget can handle. We see many poeple make the mistake of pulling out multiple credit cards just so they can keep up on other debt they have acquired. In reality, it makes no sense to take on more debt just to pay off other loans you have...

**markwaugh3** · 08-04-2010, 11:38 PM

Hi Evan, Thanks for sharing your valuable knowledge. It is true that many people do the mistake of using more than one credit card and getting into debt problem. Rather, it is better to not use even one credit card.

**Evan Bedard** · 08-05-2010, 06:30 AM

Hi Evan, Thanks for sharing your valuable knowledge. It is true that many people do the mistake of using more than one credit card and getting into debt problem. Rather, it is better to not use even one credit card.

Oh definitely, I cannot even begin to tell you how many people I have seen accumulate more debt just to help payoff other debts.. Doing this will leave a borrower in a never ending cycle of debt...

**goodyphilips** · 08-26-2010, 03:53 AM

Well i would say its actually good to use atleast one credit card if you can afford since if you pay regularly and on time then it enhances your credit rating substantially. as far as mortgage is concerned, do not go for it if you can not afford it.