Every once in a while, someone will come to me and ask, "I have a rather couple of financial obligations on my

hands. Do you think I should take a personal loan to settle all these financial obligations? If I do that, my life will
be easier as now I have only one loan to worry about. Moreover, as the rate of interest of the personal loan is
lower than the interest charged in some of the other loans, I'll be conserving cash doing so. What do you think
about the concept?"

Instead of giving him the milebrook financial address

answer quickly, I typically check out the eyes to check to see if he is ready. I also know that he has thought of it
currently and now simply desire me to validate that he is on the right track. Simply put, he wants me to approve of
his strategy.

" Let's see. You have all these debts, and they are a concern to you. They are starting to affect your sleep, am I
right?"

" Well, maybe not my sleep but yes, they are a problem. This is why I'm seeking to take one huge loan, a debt
consolidation loan if you will so that I can pay them off, and just have one loan to worry about, instead of 7 or 8
loans."

" I understand. But let's return to essentials for a minute. Would you take this debt consolidation loan if you had
only one other loan, let's state it is your vehicle loan?"

" No.".

" All right. Would you take this combination loan if you had two other loans, let's say now it is your vehicle loan
and work with purchase for the furniture?".

" No, I still would not do it.".

" What about if you had 3 loans?".

" Probably not still.".

" So to put it simply, you will not take the consolidation loan if you had one, 2 or even simply three other loans.".

He nods his head.

" But you are thinking about the loan now since you have seven or 8 loans?".

" Yes.".

" Doesn't it strike you as odd? How can the same formula, handling a new loan, bring a various outcome? How can
taking a brand-new loan to be good when you have 7 loans when it is not good when you have a couple of
loans?".

The men always keep quiet after hearing those words.

" So really, you know the response currently. Taking on another financial obligation to pay off old financial
obligations is never an excellent answer. It is the equivalent of digging a brand-new larger hole to fill up old holes.
You will never ever have the ability to fill the holes that way. It just leads to bigger and bigger holes and bigger
financial obligation problems.".

They would take a deep breath and after that shake their heads slowly. "I comprehend that but I'm truly in a bind
here. All these loans are making my life very uncomfortable.".

The silence is deafening.

I see them squirming in their seats. I can see the near-terror on their faces and even sense the desperation in their
hearts. When a man is dealing with the repercussions of his actions, it is never ever a pretty sight. When the years
of high-living and mishandling his funds are returning to challenge his existence, it frequently minimizes a guy to
a simple shell of himself. All the earlier cockiness and self-confidence disappear. I have seen grown men tremble,
plead, plead and even sob at this point.

Whatever you do, dear reader, don't put yourself into this position. It is humiliating.

How? Firstly, you must manage your money well. This will include saving, investing and taking the appropriate
insurance cover. If you are not exactly sure how to do this, there are numerous great books on the subject that can
assist you. 2, never ever bite more than what you can chew when it concerns taking loans. In other words, obtain
in workable amounts just. Next, take only good financial obligations. This means to obtain money only to buy
properties. On the same token, never ever obtain cash to buy things that does not go up in value or even worse,
decrease in worth.

Finally, and to specify of the chase, if you are already drowning in debt, the first thing to do is not to borrow
anymore! The idea of borrowing money to settle old debts is a bad idea. It is the technique of the non-rich and
desperate people. And that by definition suggests that you need to not even consider it. I can guarantee you that
it is not the method of rich men.

Avoiding uncollectable bills may suggest missing out on the excitement of needing to escape from debt
collectors. Still, this is the sort of excitement that you 'd be better off without!