Why Debt Consolidation Doesn't Work!

Why Debt Consolidation Doesn't Work!

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• The Ramsey Show (Highlights):

[abes.]

I owed 38, 000 in credit card and did what he's saying. I didn't buy clothes for years, no going on vacation, no fancy shoes, no cable and stop buying stuff I didn't need. I did consolidated to simplify the payments, I don't owe a dime on credit cards and my car loan is just 2100 bucks as of today. I got 2, 000 from income tax and guess what? I'm paying the car in one shot so I'm gonna save money.

[maxbie]

People in this comment section aren't actually listening to the entire video before commenting: at 2:42 he says that he'd do it, but that the important thing is not the interest rate: it's the psychology.

If you consolidate the debt and don't fix your behavior, you'll double your debt in no time and have nowhere to go.

[timhopkins]

I did a debt consolidation a couple years ago. Paid all my credit cards off, most of my car and student loan. I will have the loan (the debt consolidation one) paid off this time next year. I will say though, I never had bad spending habits from the start. I did it more or less just to have one monthly payment that was far less that all my minimum monthly payments combined. I don’t regret it at all. It helped my credit out tremendously. It’s really just all about discipline and self control.

[Larry_M]

Amen Dave. I did a debt consolidation loan. It felt good to have a $0 balance on a credit card even though I was paying one amount every month. I felt so good about having a $0 credit card balance, so I figured a few small purchases on the credit card would be ok. Unfortunately, I didn't fix my bad habit and stayed undisciplined. So now I have a $587 monthly payment for the next 3 years, and I ran back up the credit card, so now it's double the trouble. Best wishes to everyone in their self control spending habits.

[TommyG]

Completely Debt free as of 03/03/2020 Thank you Dave Ramsey for the Spark.

[jerryiverson]

Debt consolidation didn't work for us because like Dave says we didn't address the core problem. A few years after we consolidated we were twice as much in debt. We should have listened to what he said. Fortunately we are almost out of debt now, but It's taken us twice as long.

[youngtimer]

I agree with Dave on this. He said “probably not”. You will find that most of the time people find themselves right back in the same mess a year or two later because they did not fix the problem.

[mikeb]

“Call the wambulance!” 😂😂😂
He said that with so much conviction.

[eriksdodges]

I did it, 6yrs ago. My wife had trouble getting a job after being laid off for a year. Once she landed a job we consolidated $18k into a 24 month 0% interest line of credit through BOA. Paid it off in 10 months, no credit card debt till this day it's a doable option

[RamenReignss]

This dude saved me from making a huge mistake with debt consolidation.

[twiWright]

When I was young naive about the dangers of credit cards, I tried consolidation with a company and it cost me more to get out of it than to just pay it.

[ThinkMoneyBenny]

I’d get that debt into the 0 APR card but get to work on paying it off asap.

rice & beans with beans & rice 👍🏻

[itsokaytobeclownpilled]

Interest rate doesn’t matter if you’re unwilling to change your habits.

[kadytawney]

Successful investing is about managing risk, not avoiding it.

[rickfowler]

One of the BEST clarification speeches I've EVER heard from you, Dave. You're actually CONTINUING to improve on your delivery, even after all these years. Well Done!
And I agree, it's not that it's not a good idea to do the zero interest transfer. But it's NOT going to work unless you've made it to the point where you're Sick and tired of being sick and tired, in debt! When you're DONE with debt, every little thing like zero interest debt transfers help your momentum even more!

[ApplicoInc]

I understand what Dave is saying about needing to change your mindset and not just put a bandage on the problem BUT if you can truly change spending habits and take advantage of the 0% APR card💳 I think that's the way to go. Why let the non 0% cards eat away at the money you could be putting towards the actual debt?? 🤔

[wtk]

I've been there. Unless there's a change in behavior, if you had six payments before debt consolidation, a year later you'll have the debt consolidation payment plus six new payments.

[iAlwaysSpeakTheTruth]

I consolidated my debt, went from almost 5k to down to 2.7k now, I vow to never use a credit card again and my credit score is now 720! Change the habit people!

[Xantank]

Cancel cable. It’s overrated and internet is here

[bearshooper]

My friend told me about you 5 years ago when I was making awful financial decisions and I hated your ideas. Today I am working on my debt with a plan to be debt free by end of 2021 and you are my favorite show on YouTube. Thank you.