Debt management

Debt management is a critical issue, and Jordan Harbinger provides valuable advice on the topic in his podcasts.

1. Credit Counseling: Jordan highlights the advantages of credit counseling over debt relief companies. Credit counseling offers personalized plans to solve financial problems, including budgeting and money management classes. These services are often free or low-cost and can be more practical and helpful compared to debt relief companies, which usually charge high fees and interest rates 1 2.

2. Dealing with Debt Collectors: Knowing your rights is crucial when dealing with debt collectors, who might often act unethically. Understanding the laws that govern debt collection practices can help protect yourself from shady practices 1.

3. Bankruptcy as a Last Resort: Filing for bankruptcy should be considered only after all other attempts to pay off debt have failed. Bankruptcy can offer a fresh start but has long-lasting effects on credit reports and can impact future financial opportunities like insurance and job applications. Consulting a bankruptcy attorney for personalized advice and understanding state-specific laws is highly recommended 1.

4. Hiring a Business Manager: Jason DeFillippo, Jordan's co-host, shares his experience of hiring a business manager to manage finances, which helped him climb out of debt. Business managers can handle all financial aspects, allowing you to focus on other areas of life. It’s important to find a reputable manager through trusted sources like your accountant 3.

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     1

     Managing Debt

     00:28:12
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     2

     Battling Debt

     00:25:53
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     3

     Money Management

     00:17:57

5. Avoiding Debt Relief Companies: Gabriel Mizrahi relays advice from a bankruptcy attorney, Erin Hoskins, who warns against using debt relief companies. These companies often charge large fees and high-interest rates, making it more costly than repaying debt on your own. Credit counseling is recommended as a more effective and affordable alternative 2.

For building stronger financial habits, Jordan's show offers several episodes focused on forming good financial habits, which can be beneficial as you work on managing debt.