If worrying about how to pay off debt leaves you awake some nights, late-night television abounds with alleged solutions. Some ads promise to get rid of your debt for “pennies on the dollar,” while others try to persuade you to take out new loans to pay off old obligations.
Fall victim to these “deals” and you might be left with worse financial troubles than before. But these aren’t the only foolish ways of paying off debt. I spoke to financial experts to find out the common, dumb mistakes people make while trying to get out of debt — avoid making these same missteps.
Last updated: July 15, 2020
1. Taking Out Payday Loans
If your car or house payment is due before your next paycheck, a payday loan can seem tempting. You don’t need good credit, just a steady source of income and a valid ID. The lender gives you