Debt Free News

Debt reimbursement advice released

January 15, 2007

When it comes to working on debt free living as hard as you can, you need all the best advice you can get. Our news department has just received a great new debt free advice report that we think is worth looking at. After all, debt consolidation and credit card debt are at the top of many of our debt news reader’s minds since the Holidays and even longer in many cases.

In the debt advice report we read today, we saw the following question being addressed first:

A woman wrote to the report’s debt advisor and said she works for a company and typically has expenses she claims (that she gets paid back to her on a regular basis). In the recent past, she has amassed quite a bit of these expenses (to the tune of seventy five thousand dollars. Some of you reading this debt free article may be in a similar situation. Her main concern regarding this situation was what to do with this new debt until she got repaid by her company. In the report, we read that she was wondering if she should transfer the $75,000 to a credit card that carries no interest and deposit her reimbursement money from her company into a high yield savings account. She was concerned about credit card debt and wants to know if this is a good idea.

Well, according to the debt advice report, most people learn these issues with credit card debt the hard way. Honestly, it is puzzling to our debt free news article department that this much debt was accrued from expenses in the recent past with reimbursement coming through yet. If you have seventy five grand in credit card debt from work related expenses, you may have made a few mistakes along the way needless to say. According to the advice she received in the report, it was not completely recommended that she jump into this risky maneuver. We are all interested in making our money perform for us – after all you are reading this debt free article aren’t you?  But trying to do this on a seventy five thousand dollar balance of credit card debt can be too risky unless you have a back up plan. The report recommended that she watch out for company travel and being on the road when the debt is due. Never forget the bills. This will negate any interest free deal you may have on credit card debt. In fact, if you forget to make a timely payment with most all of these interest free deals – the interest then added is out of this world high. The report states clearly that many credit card companies add about 29.9% in some cases. So, putting the reimbursement into a high yield savings account could be very dangerous if you make even one late payment on the credit card debt. The report clearly stated that if she ever had to pay late, the interest payment bases on a 29.9% interest accrual would be a more than seventeen hundred dollars each month.

Do you know any high yield account that can earn this each month to cover this disaster? No.

The debt advice report says job security and the company finding out this money making maneuver on her behalf could be detrimental as well. As many of you may also know, exchanging on serious debt for another or an investment of any kind never comes with any debt reduction guarantees. Even though the zero interest credit card debt is not accruing more debt for her, she still has the obligation to pay it back - no matter what her employment situation is. No matter how safe you feel in you current job, you do not want to chance massive debts in any other way - especially if it violates company policy.

Here at this debt free site – we are always looking for great reports like this one. be sure to check back here on a regular basis for the latest reports.

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