Why doesn debt consolidation work?
Debt consolidation doesn’t work because you end up paying about the same amount. The truth is that you cannot borrow your way out of debt. The way to get out of debt is to change your habits. You need to commit to get on a written game plan – a budget – and stick to it. Get an extra job and start paying off the debt. Live on less than you make. Getting debt free is not rocket science; it’s common sense and self-discipline. You may be tempted by the companies that claim to be able to clean up your credit for you. Don’t go there. There are two basic problems with them. First, for purposes of getting a mortgage, going through companies that take your money and pay your bills will reflect on your credit as if you filed a Chapter 13 bankruptcy. Secondly, only transactions 7 years or older, or a mistake, may be taken off your credit report. A company that says otherwise is either lying or operating illegally. Here are two suggestions. First, sit down with a counselor and work out a plan to g
