Dave Says: Time to fix the real problem

Dear Dave,

I’ve heard you tell people to avoid debt consolidation companies. Why do you think debt consolidation is such a bad thing?

Tom

 

Dear Tom,

The main reason is that debt consolidation makes you feel like you did something to really change your financial world when you didn’t. That’s part of the catch. Believe it or not, I hear people all the time say things like, “I took out a loan, and paid off all my debt!” No, you didn’t. All you did was move your debt around. It’s still there!

In cases like this, the biggest issue remains because you didn’t do anything to address the real problems—you and your behavior. When you have debt, the number of payments you have left isn’t the problem. The problem isn’t interest rates, either. The problem is the person you look at in the mirror every day.

Until you get mad enough about your financial situation and the real reasons for it—until you fix you and your behavior—you’ll never make any progress toward winning with money!

—Dave

 

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money MakeoverThe Dave Ramsey Show is heard by more than 15 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

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