10 Debt Consolidation Myths #6: You Need A Formal Debt Management Program

Contributed by mm | September 1, 2006 1:47 AM PST

Bankrate has an excellent review of common misconceptions of debt management. Here is the next installment: You Need A Formal Program To Get Out Of Debt..

Yes, living below your means, or the mental spending discipline, is even more important than any fancy debt management plan you sign up for.

From Bankrate:

Many creditors will enroll you in their special reduced-interest programs if you approach them as an individual. The pain comes in making all those phone calls and knowing what to ask for.

Home equity lines don't require third-party guidance, nor does refinancing your first mortgage to get your hands on a lump sum of cash. On the flip side, these options still require spending discipline on your end lest you wind up with a mortgage payment, home equity line invoice and another $10,000 credit card debt six months down the road. This time, your house is on the line.

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