Debt Consolidation

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Author:
Dave Ramsey

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 out of a hole by digging out the bottom.

Larry Burkett, noted financial author, says debt is not the problem; it is the symptom. I feel debt is the symptom of overspending and undersaving. Our certified counselors will not recommend debt consolidation for a client. he reason that we do not use debt consolidation is because it doesn't work.

The Truth About Debt Consolidation
A friend of mine works for a debt consolidation firm whose internal statistics estimate that 78 percent 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 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 you pay the lender more, which is why they are in the business of debt consolidation.

The Real Way to Get Out of Debt
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 from someone like Dave Ramsey. Don't try debt consolidation!

This content is provided by DaveRamsey.com and may be used only in its entirety with all links included. Dave Ramsey is changing the face of America by helping people beat debt and build wealth with his bestselling book, The Total Money Makeover, and nationally syndicated radio show, The Dave Ramsey Show. Read more of what Dave says about debt consolidation.

A Quick Note From The Publisher... If you like the article above, you may be interested in the following article which is also related to Debt Consolidation... Get Out Of Debt Safely Using Debt Consolidation Services Debt consolidation services are now available to help you get out of debt. No matter if they are free or paid, debt consolidation services are debt consolidation services. They are a great way for any individual or family to get out from underneath a mountain of debt. Debt consolidation services are popping up all over the country and many operate solely through the Internet. Debt consolidation services are not loans, but rather counselors who work with you to get rid of debt. As the leading providers of face-to-face debt advice, the Citizens Advice Bureau is ideally positioned to join the skilled professionals with debt stricken citizens. Organizations like the Citizens Advice Bureau are able to help borrowers change their spending habits, and manage their debt. Credit counseling agencies are actually debt consolidation management profiteers. These could include debt settlement, credit counseling, or other debt consolidation services. There are also non-profit consumer credit counseling services for debt consolidation and debt management. After your counseling, you have the right to accept or reject the offers suggested by the counselor. There are non-profit organizations offer debt counseling and financial education services across the globe. Even if someone decides to do it without legal help, he or she may want to seek advice on specific points from a local Citizens Advice Bureau or a solicitor. Debt reduction is now becoming more and more of a necessity. You will need to choose a debt reduction method that will work best for you. There are many good reasons why a debt reduction loan makes good financial sense. Debt consolidation services are an option that look out for your well-being and assist you in regaining control of your money. Counseling agencies...