The Truth About Debt Consolidation

The Truth About Debt Consolidation

Myth: Debt consolidation saves interest, and you have one smaller payment.
Truth: Debt consolidation is dangerous because you treat only the symptom.

Debt consolidation is nothing more than a “con” because you think you’ve done something about the debt problem. The debt is still there, as are the habits that caused it - you just moved it! You can’t borrow your way out of debt. You can’t get lowest price traffic school coupons out of a hole by digging out the bottom. True debt help is not quick or easy.

Larry Burkett, noted financial author, says debt is not the problem; it is the symptom. I chicago bankruptcy consulting feel debt is the symptom of overspending and undersaving. Our certified counselors will not recommend debt consolidation for a client. Why? charlotte,nc garden stones engraved Because debt consolidation doesn’t work.

Debt Conso

lidation Statistics
A friend of mine works for a debt consolidation firm whose internal statistics estimate that 78% of the time, after someone consolidates his credit card debt, the debt grows back. Why? He still doesn’t have a game plan to either pay cash or not buy at all. He also hasn’t saved for “unexpected events” which will also become debt.

Debt consolidation seems appealing because there is a lower interest rate on some of the debt and a lower payment. However, in almost every case Холодильники Panasonic we review, we find that the lower payment exists not because the rate is actually lower but because the term is extended. If you stay in debt longer, you get a lower payment, BUT if you stay in debt Жесткие диски longer, you pay Camel cigarettes ingredients the lender more, which is why they are in the debt consolidation business.

The Real Way to Get Out of Debt
The answer is not the interest rate; the answer is Водонагреватель 100 литров a total money makeover. The way you get out of debt is by changing your habits. You need to commit to getting on a written game plan and sticking to it. Get an extra job and start paying off the debt. Live on less than you make. It is not rocket science, but it is emotional, which is why most people need help getting through it. Don’t try debt consolidation!

This микроволновые печи Gorenje content is provided by DaveRamsey.com and may be used only in its entirety with all links included. Весы Dave Ramsey is changing the face of America by helping people beat debt and build wealth with his best-selling book, The Total Money Makeover, and nationally syndicated radio show, The silver dollar estate sales Dave Ramsey Show. Read more of what Dave top recruiting firms in boston says about debt consolidation.

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