Is forgiveness a good thing?

If you are talking about debt forgiveness.. probably not..

Nah, just get on a budget!

Too many times I sit behind my desk and listen to customers “theories” and “strategery” on how this debt or that debt is going to be miraculously erased from their life…

But, here's the deal…

Many people are thinking they can take advice or become so motivated by all these commercials on the radio that suggest “DEBT SETTLEMENT”.  Think before you act..

Did you know that IF a creditor chooses to forgive debt you will (likely) get an IRS 1099 C to add to your next tax return. That’s right, it is counted as income and will impact your tax situation. More income means the likelihood of more taxes, etc.

If it's your debt then you need to pay it ALL. Just do it the old fashion way. Get on a budget and chip away at it using the debt snowball or whatever.. pay it off. At least then you can – without any reservation – say you paid it off.  I really believe that paying the debt is easier to do than continually dodging conversations OR trying to use some get rich quick scheme to make enough to pay it.  My schemes (and I had plenty) seemed to cost me more in the long run than if I'd just started paying the silly debt. 

Just call it what is... forget about debt forgiveness - because there is a cost associated with it too. Get on a budget, focus on the debt and work toward paying it off.

It is hard.. But you can do it!

Trust me.. I'm a banker! (LoL)
je