Dave Ramsey says: Change in debt status depends on change in behavior

Dear Dave,

I’ve heard you tell people to avoid debt consolidation companies.

Why do you think ?

— Tom

Dear Tom,

The main reason is that debt consolidation makes you feel like you did something to really change your financial world when you didn’t.

That’s part of the catch. Believe it or not, I hear people all the time say things like, “I took out a loan, and paid off all my debt!”

No, you didn’t.

All you did was move your debt around. It’s still there!

In cases like this, the biggest issue remains because you didn’t do anything to address the real problems – you and your behavior.

When you have debt, the number of payments you have left isn’t the problem. The problem isn’t interest rates, either.

The problem is the person you look at in the mirror every day.

Until you get mad enough about your financial situation and the real reasons for it, until you fix you and your behavior, you’ll never make any progress toward winning with money!

— Dave

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