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My younger sister is struggling with debt. She is the most wonderful hard working single mother and I love her it hurts me to see her living paycheck to paycheck correcting all the mistakes her ex-husband made. I really want to help her in making the right decision on wheather to consolidate or not. Who can we trust? Is there a honest debt consolidation company out there?

3 Thoughts on Debt consolidation. Does it work?
  1. Reply
    November 11, 2011 at 8:13 am

    No, don’t consolidate.

    Call each of the debts and try to get the interest lowered. Then decrease your expenses. Don’t eat out. Get rid of the cable. Get rid of the cell phone. Etc.

    Increase income.

    Then, make the minimum payments on each debt. On the one with the lowest balance, put all your extra money to it. When you pay it off (which should happen quickly if you truly dive in) then take all the money you were paying to that debt and start paying it to the next lowest balance. Continue this “debt snowball” until everything is paid off.

    Then NEVER USE DEBT again unless you can pay your balance in full every single month.

    There is no one that can do this for you. You can’t BORROW your way out of DEBT. Debt Consolidation just charges you money to do what you can do your self.

    Go to the librabry and check out Dave Ramsey’s book! Check him out on the internet, listen to him on the radio, attend a class at church, or watch him on television. He will get you (or your sister) motivated.

  2. Reply
    Steve L
    November 11, 2011 at 9:02 am

    Talk to your banker he knows you and can do what is right.

  3. Reply
    November 11, 2011 at 9:32 am

    NO, consolidation will just run the bills up again. She MUST a)reduce payment, b) increase income. Consolidate only if she can close them all.

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