|   |

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.

|   |    Article Keywords: 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... Avail Hidden Benefits Through Student Debt Consolidation Loan Are you one of those students who are facing problems due to their multiple debts? This can be the condition with a large group of students who are pursuing their studies. Student debt consolidation loan is the loan designed to merge all the debts of students into a single payable amount to be paid in monthly installments. Student debt consolidation loan removes that extra burden of multiple monthly payments from your mind. Interest rate, the foremost requirement of any loan is lower under student debt consolidation loans. Student debt consolidation loans are available in both secured and unsecured forms and they are available to everybody even to people with bad credit. The raison d'être behind students looking for student debt consolidation loan is to get rid of their multiple debts. Debts may trap students due to numerous reasons such as:  Hike in tuition fee  Unexpected expenses like medical bills  Other unforeseen expenses  Payment of student loans These expenses give rise to financial problems for students as they don’t have a regular source of income. Increasing number of debts may worsen the condition as they have to face harassing calls from lenders. In such a scenario, student debt consolidation loans are an optimum solution for students to get rid of their debts. Student debt consolidation loan is specifically crafted for students. A student debt consolidation loan comes with lower interest rate and most importantly these loans can be easily availed by just a click of your mouse. Before you apply for any student consolidation loan you have to fulfill the eligibility criteria as under: The student should no longer be enrolled in a school The student should be paying the debts for at least in the grace period of...