Does Debt Consolidation Really Do Anything?

I guess I beat the odds, I consolidated for lower interest and killed it all in under a year. It's a useful tool if you use it correctly and have the right mindset.

I had some credit card debt with high interest rates. I moved them to a fixed load at 10% and it's almost paid off. Interest matters and if you have the discipline to stop spending like an idiot then this is a smart move.

I consolidated my debt 12 yrs ago. Haven't been in debt since then. Debt consolidation definitely helped to mature my spending habits. It works for the people who really want to change their habits after they pay it off and for others it doesn't work because they keep adding more debt while still trying to pay off the debt they have

He’s not saying it’s necessarily a bad thing he’s saying people think they have paid the bills off and they go and get more bills.

If you use it correctly, it works. I had $6,000 in Credit Cards at about 22% APR and moved it onto a consolidation loan at 11%. Canceled my credit card, saved thousands in interest, lowered my minimum monthly payment by $60 and was able to pay it off in 8 months, credit score went up 70 points and now I pay cash for everything.....

I used to be a consumer loan officer. It works great if 1. You get a lower interest rate. 2. Continue to pay it off but in larger chunks while paying less interest.

“The ability to delay pleasure for the greater good is a sign of maturity!” Wow! I needed that.

I did a credit card consolidation for 1 card. Best decision ever. Current card 2% interest instead of 28% interest. Personal loan of $1,200 to pay off 2 cards which had a 10%interest and the other 30% interest. The loan is 11% half way done paying it off. Worth it.

If you can lower your interest rate, in theory you can lower the cost but the problem is most people extend the term and just pay the minimum 🙄👎

“You cannot borrow your way out of debt” So true, people cannot get that through their heads!!

Debt consolidation is just that consolidation.....it makes it easier.....changing your habits is correct but consolidating your debt with habit change isn't a bad idea

Dave is good for people that are bad with credit and money but if and when you are mature enough credit can build incredible wealth.

I used a debt consolation loan to leave my financially abusive husband and pay off credit card bills. I was using credit cards for medical, household and children’s expenses. He just refused to give me money for anything he disagreed with. We took a Dave Ramsey class together and he used the information to further verbally abuse me while making terrible financial decisions behind my back. That was money that could have been going into our household but instead was going elsewhere. So on the surface I looked like the bad guy for using credit cards. I am very sympathetic to women in my same situation!

Consolidated 3 students loans ~ 52k with an average interest rate of 10.5% at 20 yrs to 4.92% at 5 Years. Yes, it brought up the payment but I hated that interest rate. I’m with Dave, guess I’m going to be in that 12%, I’m trying to get out of this cycle.

Why do you assume the loan is 26% interest rate? The point of these loans are to give you less interest than your credit cards

We took out a loan to hire a lawyer to save our family from the attacks of in-laws who were trying to destroy our family. We took out a second loan as a result of it because one of our children became ill because of them. Now we are over our head (we weren't able to save our income tax return for those bills this time). It wasn't immaturity. It wasn't chocolate chip cookies either. Everybody's circumstances are different. The man who was the enabler of it all has since died and met his Judge.

My experience with consolidation seems different than described here. I had several cards going at once and was way beyond what I could pay off. As I recall the consolidation company negotiated with the various credit cards for some amount of debt reduction, and then took monthly payments till the remaining balances were paid. This experience was a powerful life lesson. I now have one card, track all purchases and pay the balance in full each month. I have not paid interest in several years.

I moved 15,000 with a 12% interest rate to a zero interest rate card. Saved 120.00 every month. As long as you stay focused on your goal, the savings will always help. To save 120.00 per month and apply that 120.00 plus your old payment to a zero percent interest card is a no-brainer.

He’s spot on w this. A couple years ago I did a debt consolidation to clear down my CCs and within a year I had run them up again :/ AND had the personal loan too. Now I’m on the debt snowball, throwing ev thing I can at it, starting a side hustle for extra income, and on track to be DEBT FREE early next year amen

I consolidated my debt and they told me I can’t open any more lines of credit until it is paid off.. not sure if that’s true or not but I’m gonna roll with it because I am doing much better now.