I am taking into consideration Debt Consolidation. Where the finest is consigning to start?

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One Response to “I am taking into consideration Debt Consolidation. Where the finest is consigning to start?”

1. JohnnyHeaven.com on: 14 September 2009 at 9:42 pm

   Statistically, it is estimated that 78% of the time, after someone consolidates his credit card debt, the debt grows back. Why? He still doesn’t have a game plot 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. But, in nearly every case that is reviewed, the findings were that the lower payment exists not because the rate is really lower but because the term is extended. If you stay in debt longer, you get a lower payment, BUT if you stay in debt longer, you pay the lender more, which is why they are in the debt consolidation business.

   ***THE SOLUTION***
   Don’t try debt consolidation! The answer is not the interest rate; the answer is 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 plot 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.

   Dave Ramsey is a financial expert who incorporates ancient-fashioned money managing techniques to get out of debt, and more importantly, STAY out of debt. He is the author of the book "The Total Money Makeover." You can go to your favorite bookstore to get it, but the 7 key points (which he refers to as "Baby Steps") are covered in this free video:

   http://www.hulu.com/watch/48522/the-dave-ramsey-show-may-2-2008