Horrible Get Out of Debt Advice Lands
Family In Hot Water With The IR$ Part (1)

When It Comes To Getting Out of Debt There Are Two Types of Advice
When it comes to advice, there are basically two types: (a) bad advice, and (b) good advice. If you are working to get out of debt, bad advice is not what you need to read or hear. Not now and not ever. Amazingly and regrettably, more and more debtors are receiving debt advice that is leaving them in a much worse state than when they started.

Get Out of Debt Advice Lands Family in Hot Water
Henry and Jennifer developed a major credit card debt tab and they wanted out and fast. The mushrooming, out of control debt was causing problems in their marriage. Worried about their future, Jennifer couldn’t sleep and when she tossed and turned, Henry couldn’t sleep. Finally one day, they agreed their debt problem was bigger than the both of them and they sought help. After performing an online search, they decided to use a debt settlement company that promised them three things.

(1) They would immediately stop the debt collectors from calling

(2) They’d be debt free in less than nine months, and

(3) Their credit score would be back in the 750 range

It was a deal Henry and Jennifer felt like they couldn’t pass up. The paid the $2800.00 in up front fees and waited on the debt settlement company to do their thing. True to their word, the debt collectors stopped calling -except for their mortgage- in less than nine months the two were out of debt.

All of their credit card debt and other unsecured loans were stamped, “Paid as agreed.” And around a year later, their credit score was in the 750 range. But, the problem was, the get out of debt advice they received, put them in very hot water with the IR$.

Never Go Into Debt To Get Out of Debt
The get out of debt advice they received was to borrow from Henry’s 401(k) plan and pay off all their debts. The debt counselor -who had no education, training or degree, in finances or taxes- didn’t even think about the dire consequences of an early withdrawal from Henry’s 401k plan. When the tax bill finally came, they ended up owing $13,700.00. You know how the IR$ works; it was a bill that was due and payable right then and there, but it was money Henry and his wife didn’t have.

Suffice it to say, borrowing from Henry’s 401k plan to get out of debt was horrible debt advice. When you add up the numbers, going that route to fix their debt problem definitely wasn’t worth it. They essentially paid $2800.00 for someone to advise them to transfer debt from one hand (credit card debt and other unsecured loans) to the other hand, which would be their 401(k). Here my list of get out of debt advice that will land you in similar and potentially worse situations.

Horrible Get Out of Debt Advice Lands Family In Hot Water (Part 1)
Some Get Out of Debt Advice is not only horrible, it just may land you in hot water like this family. They had a debt problem, sought professional help and that's when things got worse!

Horrible Get Out of Debt Advice Lands Family In Hot Water (Part 2)
On the surface, the Debt Advice this family received seemed like it was on point, But in reality, it landed them in hot water with the IRS. Instead of their debt problem going away, it got worse, find out how they unwittingly received some very bad debt advice.

Horrible Get Out of Debt Advice Lands Family In Hot Water (Part 3)
After receiving terrible get out of debt advice, this family had to pay the piper. They had some hard decisions to make after realizing their debt problem got worse instead of getting better. Don't ever follow in their footsteps.
 

William Phillips brings a degree in economics and an unwavering passion to help fellow Americans come from under the clutches of debt. He believes that with the right debt advice or debt counseling, anyone can recover from the stresses of being overwhelmed with credit card bills and other debts.