Credit Consolidators..people who use them....not cool

I am not sure who I can not stand more.....people who take advantage of people or people that are so naive to think that money matters disappear like magic. Both are idiots.

I have been hearing on the radio advertisements that state ....call us we won't consolidate your debt....we will eliminate it. I could not for the life of me figure out how that would happen. I figured it was taking all the credit card debt at 19% and rolling it into a personal loan or 2nd mtge for 10%. Seemed honest enough. If you were foolish enough to build up all that credit card debt....

Let me stop this so I do not get the bleeding hearts telling me that some people due to illness or accident fall into financial disaster.....I agree...it can happen. But this is 2% of the issue. Let's not let the tail wag the dog on this issue. Most people that have debt have one issue....they spend more then they make. If you go to their place...they have the newest TV...they have all sorts of "stuff" newer cars.....I have no pity for them. They dug the hole....I should not have to help them out.

Let's get back to consolidator. Business Week (my favorite magazine) has an article on the issue this week. The bottom, line is...these firms tell debt ridden customers to stop paying their bills. This will give them leverage???? really? what it will give you is collection calls and bad credit....they claim that then they will negotiate with the credit card companies and eliminate the debt for as much as 10-30% on the dollar.
Oh did I forget....yup you have to pay them! They get paid up front.

OK Toto....this is not Kansas anymore..
So what's happening? Idiots are signing up for their free lunch....and then the cc companies are saying to the consolidators...too bad pay 100%. Then the consumer...who know has not paid anything in months....of course they spent that "extra" money on a new TV.....is being harassed by collection agencies...FOR MONEY THAT THEY HONESTLY OWE PEOPLE
Unbelievable....these people then blame the cc companies....

Here are a few of my financial tips:
Spend less then you make
Save like crazy
clip coupons and buy generic items
eat at home...it costs less
DO NOT PUT ANYTHING ON CREDIT unless you can pay for it at month end
buy a used car
Rent until you can afford a 20% down payment.

OK I am cheap.....but after many years of being called cheap....my family now lives a good life, better then most and we owe no one. Financial success takes decades....not months.