Joe Murray: Debt Strategies

With the troubled economy, a lot of people are accruing more debt than they can handle.

There are strategies you can use to avoid piling up debt, but there are some you should avoid.

Financial expert Joe Murray is with First Financial Group. He explained on "Good Day" there are five strategies you should avoid when figuring out your debt reduction plan.

Murray says paying the minimum on credit cards will just get you deeper in the hole. Interest rates are so high you will never be able to pay the card off. Murray recommends paying off the higher interest rate cards first.

It's not a good idea to borrow money to pay off your debt from family or friends. Murray says if you don't have any other options, then you need to have a written re-payment plan to avoid conflicts.

Murray says to avoid consolidation loans. There are significant penalties if you don't pay on time. If you opt for one of these loans, Murray says it is critical that you read the fine print.

Avoid using credit counselors that charge high, up front fees.

And finally, Murray says avoid filing for bankruptcy. Your credit rating will be affected for at least seven-years.