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Debt Consolidation won't change your behavior

July 5th, 2010 at 06:59 am

By thinking that consolidating your debts into a single payment is going to change your life you might want to stop and think about some things first.

Here is an example

Credit Card #1 $100/month

Credit Card #2 $70/month

Loan $250/month

So you have a total of 3 payments equaling $420 a month. With consolidation what happens is you would take out a new loan and pay each of those debts off. Leaving you with one payment of lets say $350. Sounds like a good deal right? Wrong!! You never changed your behavior and you started using those credit cards again. OOPS now you have a $350 loan payment plus 2 more credit card payments of $100 a month. Now your paying out more money each month that you were in the first place.

Now debt consolidation doesn't seem like such a good idea does it? If your not going to change your spending habits then consolidation isn't going to help you one bit.

Change your behavior. Quit using credit. And stop the cycle of debt.

1 Responses to “Debt Consolidation won't change your behavior”

  1. rob62521 Says:

    Unfortunately what you say is true...most folks think debt consolidation will solve their problems, but they go back to spending again. They don't change their spending habits.

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