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  • Will You Add? - Should You Consolidate by Refinancing or Get a Second Job?

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    d get a second job and work hard to pay this off."

    I could not believe this advice! Basically this poor caller was told to go out, take

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    Recently I heard a well respected finance advisor give advice to a caller on a tv show with this question...

    "We have about $20,000 in excessive debt, and with the minimum credit limits going up I am afraid that we will not be able to handle even the minimum payments. I have spoken to a mortgage company about refinancing my mortgage and consolidating my debt into a payment we can manage. What should we do?"

    The answer was given... "Do not refinance your home! Why would you do that? Why risk your home by adding more debt to it? I want you to go out and get a second job and work hard to pay this off."

    I could not believe this advice! Basically this poor caller was told to go out, take t

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    xcessive debt, and with the minimum credit limits going up I am afraid that we will not be able to handle even the minimum payments. I have spoken to a mortgage company about refinancing my mortgage and consolidating my debt into a payment we can manage. What should we do?"

    The answer was given... "Do not refinance your home! Why would you do that? Why risk your home by adding more debt to it? I want you to go out and get a second job and work hard to pay this off."

    I could not believe this advice! Basically this poor caller was told to go out, take

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    oken to a mortgage company about refinancing my mortgage and consolidating my debt into a payment we can manage. What should we do?"

    The answer was given... "Do not refinance your home! Why would you do that? Why risk your home by adding more debt to it? I want you to go out and get a second job and work hard to pay this off."

    I could not believe this advice! Basically this poor caller was told to go out, take

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    answer was given... "Do not refinance your home! Why would you do that? Why risk your home by adding more debt to it? I want you to go out and get a second job and work hard to pay this off."

    I could not believe this advice! Basically this poor caller was told to go out, take

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    d get a second job and work hard to pay this off."

    I could not believe this advice! Basically this poor caller was told to go out, take time away from the family and work a second job (probably around $7-8 per hour) to pay off the extra debt. Forgetting the ramifications on the caller's personal life and stress load, lets look at the financial reality here.

    A second job at even an aggressive rate of $10 per hour will average only 10-20 hours a week. Say $200 before taxes, roughly $150 after taxes. Take away the increased expenses occurred (gas, wear and tear on vehicle, etc) and count roughly $100 a week to add towards the debt. Again, we will forget the whole compound interest on the card

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