2 Reasons Why George Kamel Says Common Debt Payoff Strategy Is a Trap

George Cameel is the author, host of Podcasts, and the character of a radio program working in Ramsey Solutions, a financial education company in Dave Ramsey located in Tennessee.

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Kamel promotes Ramsey Solutions, which includes not obtaining credit and payment of debt using a snowball method. In his presentation episode entitled “Why does monotheism of debt is a trap?”

At the end of the video, Cameel shared what he believed to be the best way to pay off the debt: religious snowball. Here is the reason that Cameel does not recommend obtaining a debt unification loan and why it recommends the snowball method instead.

Debt unification loans often come with fees, and borrowers do not guarantee low interest rates. If you decide to get a monotheistic loan for debt, take the time to compare your options and search in private lenders, as there are many loans that announce the lack of fees. Beware of hidden fees, such as credit verification fees and construction fees, which can put borrowers in more debts.

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Cameel also indicated that when someone gets a debt unification loan, they do not pay debts. Instead, they transfer debts from one shape to another. Ramit Sethi, another personal financing expert and a more selling author, agreed in an article on his website on the pros and cons of debt unification. Sethi said it is a common concept that the unification of debts means that the borrower will be less. He explained that once someone unifies the debts with a loan, they will owe the same amount; It is simply in a different form.

Sethi acknowledged that although there are negative aspects of monotheism loans, there are also advantages, such as simplifying payments and reducing financial tension.

Cameel suggested that instead of spending time transferring debts from one shape to another, use the religious snowball method. This is when the borrower writes all his debts and begins to push it from the smallest balance to the largest balance.

With this method, Cameel said that people are developing a strategy that keeps them excited to win the quick because they can pay the smallest balances first. When someone pays one balance, they set the minimum payment in the next debt until all debts are disappeared. This builds momentum and helps to make progress, instead of transferring debts to a different lender, which can prolong the debt reward schedule.