Does Debt Consolidation Really Do Anything?

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[@Scorpiomaj27889]

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.

[@elmerluzero3puertastechito501]

I don't know...you not giving any numbers.

[@jmgarza1288]

How much debt are we talking?

[@insideoutsideupsidedown2218]

I am one of those 12% as well. Moved it to a loan at the credit union, cut up the credit cards and have breathing room to add more to get it paid off.already kicking it.learned our lesson. Never again.

[@PilarAYah]

@@insideoutsideupsidedown2218 you said you went to your credit union?

[@insideoutsideupsidedown2218]

@@PilarAYah yes

[@cdi9380]

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.

[@Syne1nz]

You're the exception. There will always be some people that can do it, but the majority will fail so Ramsey cannot endorse doing that with a clear conscience

[@marcelmonbeaufrere9445]

I am from Belgium and 10% sounds crazy high to me

[@andrewohlwiler2727]

I am looking at something similar

[@lorishammer2209]

@@marcelmonbeaufrere9445 same here in Switzerland, 10% is the max allowed by law here 😂 You can find debt consolidation loans for 4.8%/6.9%/8.4%, but I've never seen a 10%..

[@cjzanders5430]

Exactly. It works if you know how to stop or at least reduce interest payments I'm sure. Dave just isn't going to agree with a method that involves credit cards or loans period. He's also usually more frantic at thoughts that are much worse than this.

[@7PitBullz]

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

[@benjaminestrella42]

Who’s you use?

[@mannyboyaztlan5127]

@@benjaminestrella42 I work for cash keepers financial need help let me know.

[@feliciajames5032]

I totally agree with you.

[@general.disdain]

how do you know who to use @7pitbullz ?

[@YemayaIndigo]

Me tooooo! I was in debt with capitol one credit cards lol. My first ever credit cards that gave me a chance back when my credit for in the 500s lol. I was doing fine until I had an emergency and had to max out my credit cards. At the time, my credit got up to 772 then I maxed my cards out and dropped to the 600s. My interests a month on my cards was freaking 29%! So every time I made my monthly payment around $300, only about $25-$30 was going to my actual debt. I was 9k in the hole and after 4 years of monthly payments, i still had 8k left to pay!! It was a nightmare! So I just got a personal loan for 9k in July at 16% and only pay $197 a month for 6 yrs! Best decision I every made. My credit score only went back up to 753 but it'll rise higher the more I continue my payments! ❤

[@lytonya1533]

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.

[@bridgettdent4416]

👏👏👏👏👏👏👏

[@ChrisDodges123]

Well, he needs to speak to the issue of debt consolidation and a not speak to bad habit spending. Because I need to know if its good. I dont need to hear about old spending habits. I have debt because I took about loans to fund my project. I dont NEED debt consolidation, but I just wanted to know if it helps or is good. But he didnt answer that.

[@coreym4979]

Bro he just talked about corn and not the situational aspects. This your guy, boomers?

[@Theultrazombiekiller]

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.....

[@b.m.robertson5959]

Can you ever get credit cards again at the same institutions? I'm thinking of doing this with a 27K debt but weighing it against snowball/ avalanche methods as well

[@Theultrazombiekiller]

@b.m.robertson5959 yes you can! Most banks make you wait 1 year though

[@lepee1300]

Literally got approved for debt consolidation yesterday. My plan was to do the same as you. Instead of 6k mines at 9k. Definitely made bad decisions with credit cards. After I get off this debt I'm doing the same thing, sticking with debit and cash lol

[@laniedav8078]

I agree. I’m doing something else/ throwing a card in/ using that debt to kill off two other cards. I did read Total Money Makeover. I intend to follow that.

[@Dustin4ever]

While you’re paying cash for everything, please educate yourself on money cause using your credit “the right way” can actually benefit you. You earn points, credit score goes up and more. But remember, this is after you educate yourself so you don’t make the same mistakes. I’m proud of you! 🎉

[@pmbarro]

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.

[@skittles2055]

That’s how I was thinking so it’s nice to see someone with inside experience confirm those two things as possible, thanks.

[@PikachuSauces]

What’s a good debt consolidation place ?

[@ChrisInvests]

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 🙄👎

[@tomsandoval2607]

Someone close to me was stressing about all her debt and came to me for help. After doing a full audit on her spending and helping her set up a budget, we finally reached a condition where she would be out of consumer debt in 5 years or so. Due to the excitement of having a plan to freedom I asked if she would be willing to work extra to get out of debt faster. 3 weeks later she had a part time job on the weekends. The additional income would have her consumer debt free in only 3.5 years. So far so good. Since she was doing so well on the new budget with extra income she asked me about consolidation loans. I falsely believed her good behavior meant a true change of heart. We found a really good rate (9% APR) at a local credit union. Her credit cards were all 16%-24.99% so it was a great deal. The transfer would have saved a few months of payments (and hundreds of dollars in interest). Deal goes through and after feeling the wonderful false sense of freedom and hope for the future she (unbeknownst to me) began racking up her credit cards again. Eventually she completely fell off the wagon despite frequent pleading and explaining on my part. A year later she was in twice the original debt. Except now she was trapped in the second job because she couldn't afford her payments without it. I just shook my head and gave up. 7 years later she is still in debt and complaining about it.

[@Irene-gq4jr]

@@tomsandoval2607 My ex is that 57-year-old man who will be working until he drops for similar reasons to that which you outline. I could get if he'd remortgaged to release equity on his tiny house to convert his attic into an extra room, but no, during subprime fever times he remortgaged and frittered that money away (and is still in negative equity). Likewise the £10k inheritance from his parents. Since we parted company he's cashed in one of his pensions and has no doubt frittered that away too. He wouldn't adhere to a plan any more than your friend did, was costing me a small fortune and I wasn't going down with that ship - thus he's my ex, for I can't live like that. There will always be people for whom money burns a hole in their pocket. Their left brain will understand a good plan as it is outlined to them but later their right brain takes over and runs riot. You cannot help them and I, too, realized there's no point wasting your time, money and effort trying.

[@WillisChamp91]

F

[@edwinmedina4338]

My auto loan interest rate is a little over 20%, I got the car when my credit score was horrible but had 2k saved up for a downpayment so it was a questionable decision at the time. I wanted a personal loan to pay off my car and instead of having a 560 dollar monthly payment I would have a 340 dollar payment..but I can tackle the new debt with the difference to pay off faster! The personal loan has a lower interest rate too but its not great its 14% so I might look elsewhere..what do you guys think?

[@Ohjaye_Behave]

That was me with my couch from Raymour 😩I paid $1500 of minimum payments for a year and it went up another $1200 the next year. I cried so bad because I didn’t understand how interest works after a certain period.

[@Penguinarcadeadventures]

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

[@BryantDevon]

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

[@00.50goldeneye]

This the one

[@Dude42471]

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.

[@lordcathankavanah4700]

Tony Navas Lord Cathan: This is a great thing i have never seen before my Uncle introduced me to a great man, guruhackz; a hacker, ghost hacker. He make $5000 in my credit card account without collecting no money from me till his work is done to my account and I’m so glad about this ❤ 😍 it is great pleasure with love sharing his contact with you people if you need help too. Contact Guruhackz : [phone]

[@datsun370z]

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.

[@XxmusicXxplz]

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

[@roteproductions9485]

It is the average percentage.

[@ChrisInvests]

It's more satisfying to do the debt snowball with separate loans instead of one huge one 🤷‍♂️

[@Erica-wz8yv]

Chris Invests good point.

[@YTJasonNguyen]

True

[@kimberleyhunter6815]

Plus, sometimes doing a debt consolidation will hurt a credit score. Of course, Dave doesn't care about that. I think there are also fees attached to debt consolidations too.

[@RealLifeMoney]

Yes that’s a mental thing, otherwise it seems like we’re getting nowhere fast 🤷🏻‍♂️

[@lorishammer2209]

If it saves you money in interest, than it's delayed gratification (satisfaction in this case). I would prefer to pay less instead of having some "satisfaction" about it. The snowball works great if you cannot delay too much, otherwise you can also go with the avalanche method, saves you a bit more cash

[@bchristian79]

Ok. I'm doing debt consolidation. I'm getting a personal loan from my credit union at 12 % to pay off a credit card at 25%. And yes I am changing my personal habits.

[@mrcarterfx885]

brandon christian boom

[@satanslatinangel9474]

👏🏼👏🏼👏🏼

[@gabrielfenelus6962]

You can get it done much lower at a rate of 1.8%.

[@bchristian79]

@Tristen Smith you recognize the mistake now change up and get out of debt.

[@bchristian79]

@@gabrielfenelus6962 really

[@Erica-wz8yv]

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

[@Charlesbjtown]

No on said you could. But what you CAN do, is lower the interest to pay it off sooner, which is what a heloc is good for. Get it?

[@thunderspence8183]

@@Charlesbjtown Just have the guts to learn yoru lesson and not go into debt again. Hopefully.

[@chocolatemint9225]

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!

[@demetrictucker1664]

p I 8l00p

[@lovelyek8187]

Amen, that's why I'm in debt, all weight on my shoulders most of the time

[@PInk77W1]

I love Dave, but disagree with him here. If I have 4 credit cards and am paying $400. interest per month and am drowning And I get the 4 cards consolidated to a 0% interest card for 6 months, that just saved me $2400. On interest. For a poor person that is a lot. That’s what I did and it gave me breathing room. But I love Dave.

[@lordcathankavanah4700]

Him Bike Lord Cathan: This is a great thing i have never seen before my Uncle introduced me to a great man, guruhackz; a hacker, ghost hacker. He make $5000 in my credit card account without collecting no money from me till his work is done to my account and I’m so glad about this ❤ 😍 it is great pleasure with love sharing his contact with you people if you need help too. Contact Guruhackz : [phone]

[@insideoutsideupsidedown2218]

Did you cut up your credit cards and close the accounts?

[@PInk77W1]

InsideOutside UpsideDown after listening to Dave for about a year I finally got my nerve up to cut up my cc and close the account. Now I have $14,000. In savings account and growing by $2000. A month. It’s hard but so worth it.

[@naughtyorgneiss]

@@insideoutsideupsidedown2218 Why would you close the accounts? Credit history counts.

[@insideoutsideupsidedown2218]

@@naughtyorgneiss only if you plan on borrowing money to go into debt again. You do not need credit history to buy a house, Churchill mortgage will do manual underwriting to get you a mortgage.

[@ancienttomes8940]

Ja that is true, however when you can save more money every month and then use that in the near future to pay off the debt, this can really help a person with monthly living expenses. Its not always just one way, dave's way. Yes, paying off debt is important, but there are many ways to do this.

[@marcarrera4904]

Very true we have been doing the baby steps and have paid alot now down to 2 and with our credit score finally being better we got an offer for 0% balance transfer so we moved one of the Bill's will pay it off faster and save over 1k on interest since it went for 6% daily interest to 0%!!! So now a bill that we were going to pay of in 2 years we will pay it off in 6 months!! If all goes well 🙏

[@jzman6330]

Sir, the question wasn’t answered. Does Debt Consolidation Work? Think we all know how to beat a Dead Horse. But a lower APR instead of a higher APR makes sense.

[@redd7188]

Dave, it does do something. Most people that do consolidation loans have multiple high interest rate credit cards. In most cases the installment loan has a better interest rate than the credit cards meaning they can pay them off sooner. Also installment debt looks a lot better than revolving debt on your credit report. So theres that. Your credit score will go up and you could refinance for an even lower rate to pay off faster.

[@insideoutsideupsidedown2218]

redd7188 move past your credit report. When you start to pay cash for everything, you dont need your i love debt score

[@losheroes6076]

I did consolidation debt to force myself to pay off my debt if not I'd still be in it

[@borisquince6302]

Dave's point is that debt is psychological. It's like a drug. Yes, you may lower the interest, but now you have the ability to put more on those cards. If you haven't fixed the issue that got you here, it's just more temptation.

[@danielmack5776]

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.

[@ThecrazyJH96]

You didn’t offer anything that helps people deciding to consolidate debt

[@kadirah6361]

Joseph Harding nah fr tho he just yapping

[@lovebug2253]

He always does that. Smh. I haven't gotten any real details info from him

[@SBeeLove]

Between him being arrogant, condescending, and then throwing bible quotes I couldn’t get his message. This was terrible.

[@AmbientShades]

@@SBeeLove Work all day every day, 4 jobs if you have to, eat beans and rice for the next 5 years and hope and pray those bible verses keep your 25 year old 250K mile junker car you're driving the balls off of to all those jobs doesn't break down, and you'll be debt free. That's basically what all his 'advice' boils down to. That and "Buy my finance course!"

[@SBeeLove]

AmbientShade Right !!

[@franciscopizarro2877]

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.

[@ukrsindicat]

First video of Ramsey...Thanks for the pep-talk, but I was hoping for more practical "How to consolidate your debt without making mistakes that everyone is making."

[@gustave9402]

This man claims to be a Christian but he is always very condescending and insulting. I’m sure he can still get his point across without the insults.

[@MrHeat1up]

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.

[@elmerluzero3puertastechito501]

what was your credit score? and how did you get 15 thousand credit limit?

[@baileyjones2591]

did you use a website or a credit union?

[@MrHeat1up]

@@elmerluzero3puertastechito501 sorry for delay, my score was 630. It was a process. The card itself was actually 25% interest rate. I laughed when they approved me, and told me the rate. I thought to myself "I'll never use this card". But then I noticed they offered a zero interest and zero transfer fee for 18 months. Yes I transfered the first 9k then another 6k with in a month. They thought they would make some money off of me. Yes I paid it off before the 18 months and they didn't get a penny in interest. Now this was a BJ's card so My score is much better now. But that card sprung me into debt freedom.

[@MrHeat1up]

@@baileyjones2591 I used the BJ's master credit card thru Comenity Bank. I call them a bunch of crooks. For even offering a card with a 25 percent intrest rate is robbery. But like in my previous post I only used the card because they offered zero percent and zero transfer fee on all transfers for 18 months. I used it twice and paid it all off in time. It motivated me not to pay them a single penny.

[@baileyjones2591]

@@MrHeat1up I appreciate the info!

[@MichaelLevine-n6y]

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.

[@jessicacoates1611]

Yup that is correct I had my debt. My cards were closed but there. No transfers no loans.

[@MyNameIsCorey]

Unfortunately we live in a society of instant gratification personally I blame social media....

[@markg999]

For some...consumer debt existed before.

[@AZ_TONY]

I think it's more of a combination of our advancement in technology altogether, we have an access to an abundance or resources like never before so we grow accustomed to having instant pleasure in most cases.

[@Omonike88]

Nope. This existed BEFORE social media.

[@jasongravely7217]

@@Omonike88exactly!

[@shawnnyp5686]

People are just spoiled.

[@Omonike88]

YEP! 🙋🏿‍♀️ I WAS APART OF THAT 88 PERCENT. ALMOST DONE WITH BS 2, BY AUGUST, 2019. I PRAY NEVER AGAIN.

[@Simon-je7ko]

We all make mistakes. That's the way that we learn. Good luck.

[@tjandcj123]

Are you done!!! Congratulations 🎉

[@jbordelon82]

So does the consolidation company do what they say they will?

[@Simon-je7ko]

@@jbordelon82 Yes they do. Instead of paying a credit card at 19 %. You pay 2-3%. They put all your debts together. If you have a lot of debts try it. It's better for your financial future.

[@jbordelon82]

@@Simon-je7ko Well how long does it take for them to "consolidate" that debt with those creditors? What if they offer 0% interest? To could to be true?

[@TrickNPlay]

Dave I totally get where you’re coming from...but when my student loans get down to $10k or lower, I’m going to use a balance transfer to credit card. 😂😂😂😂

[@NeoAndersonReloaded]

Dont think you can.

[@TrickNPlay]

NeoAndersonReloaded yes you actually can. Ask Discover

[@marcarrera4904]

Wellsfargo has a rewards card 0% balance transfer with 3% fee for 18months Chase capital one and American Express has a 0% transfer fee 0%interest for 15 months!

[@TimothyBeehler]

If you don't pay the balance in FULL in the introductory time you will be charged interest from the start of the balance transfer. Most people will transfer more debt than they can pay off in the introductory time frame (say $10k - in 15 months) and as a result still end up paying interest on the full amount transferred. If your student loan is 10% or less and the credit card is anything above that once the introduction time lapses you will end up paying more in the end. If you can afford to make a payment of $667 and month then you can do it, if not...bad move.

[@marcoreasco89]

Soooo what to do 😂 you rambled what not to do

[@rslily]

Exactly.

[@XxMrLimeyxX]

Just pay off your cards even if it’s multiple payments as long as the interest rate is net lower than a personal loan, etc. Focus on paying off the largest interest rate first, once it’s paid, move to the next highest, and repeat.

[@galaxyalexanderh5737]

Follow his program of getting out of debt. .... Look it up. Join a FB group..you can ask questions there and get good advice

[@insideoutsideupsidedown2218]

Read the total money makeover. Start the baby steps. If you want, take FPU, a lot of people qualify for a scholarship and can take it for free. If you follow the plan that Dave lays out, it works. He has shown 10s of thousands of people that did the baby steps and are still out of debt and millionaires

[@crazyvoice12]

I think this is kind of short sighted. Sometimes a debt consolidation can help where it allows you to regroup. Sure you just moved it but I had a plan. It made it easier for me to consistently pay off my debt as the overall payment was less than what I was paying towards debt prior. I was never late on payments and combine with taking further action to reduce my expenses, I was able to put extra on it without stress. Paid off and all good

[@alfredwong1741]

He just went on a tangent about how people will think they paid it off by consolidation, but the answer to the title prompt is objectively yes. Bad video just because it doesn't really answer the basis of the question

[@RomanEmpire16]

So there is debt consolidation Loan in the debt relief program the relief program Hurts your credit but not like bankruptcy they negotiate your debt and you pay a monthly payment or weekly no interest, whats wrong with that?

[@soummhaum7703]

Why not be be double smart It seems rather logical to reconsolidate at a lower rate while also being mature with your payments and spending habits

[@shonuff2216]

Man your talking down from that high hourse things out of our control happen all the time.

[@ryandelsignore]

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.

[@javination209]

im against loans it makes no sense at all ,, my debt was due to my ex wife 🤦‍♂️

[@farqitol]

The black and white issue is changing habits. Consolidation or snowball, won't matter a tinkers cus if the habits don't change. A consolidated loan on a lower interest rate, with tax incentives, worked for me. To the point that when I talk to banks about issues today they ask what outstanding loans I have, I just say one. They say "no, we mean credit cards and car payments and store cards, how much do you owe". None. Nada. Zero. Zip. The one outstanding loan, that is against a rental property. Then they start offering "products". Sorry, I say, can we just alter my investment account and raise the amount I have deducted into my managed fund each month please. The beauty of the internet means I can avoid talking to them nowadays, but I enjoy being able to say no. Heh heh heh. In the words of some fine philosophers, "you gotta take the power back!".

[@RedHatcc]

You are not in the arena that you are speaking too. You are a millionaire.

[@whereschloevids]

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

[@Machiavelli876]

Why did you run the cards up again? I got a debt consolidation loan and haven't used my credit card since. My new loan will be paid off by the end of the year

[@whereschloevids]

Machiavelli great question. Part of it was an unexpected financial setback, but most of it was that I hadn’t changed my mindset about debt before I applied for the loan. So once all my cards had zero balances, the “free money” lured me back in because I kept telling myself “oh it’s not that much, I’ll pay it back later” but that turned into an extra 10k🙄💀 sigh I’m on the right track now tho... it should all be gone by the end of the year

[@tjandcj123]

So it’s the behavior and not the consolidation.

[@Simon-je7ko]

Sorry Dave I desagree. Go redo your homework. It's not rocket science. When you invest you have a compounding effect. When you borrow money you do not seem to get ahead. Because of the compound effect. Instead of having to pay a credit card at 19% and another one at 10%. I prefer to pay around 3%. I didn't not extend the term of my refinancing. I did reduce it to pay less interest. Instead of 25 years I am doing 21. No I am not financially broke. Good luck!

[@lovelyek8187]

Robbing peter to pay paul🤷🏽‍♀️

[@keylloyd9167]

If anyone from this organization could respond that would be great. I don't understand how consolidating my 9000 in 26% apr credit cards into a 9000 10% fixed loan would make me a fool or a child? Someone please help me with the math here.

[@Jimmyfb77]

Appreciate the multiple bible references behind these concepts

[@jvkenshin416]

@No More Commuting What exactly does that anecdote have anything to do with getting out of debt?!?

[@jaydeedean7742]

bye thanks for the rudeness so much help

[@bridgettdent4416]

Some ppl need to hear it that way. Not for everyone though 🤷🏼‍♀️

[@bridgettdent4416]

Some ppl need to hear it that way. Not for everyone though🤷🏼‍♀️

[@jaydeedean7742]

@@bridgettdent4416 well not this one and apparently a couple others... take care

[@jvkenshin416]

You're very beautiful. 😍

[@jaydeedean7742]

jv_kenshin416 thank you very much 🙏🏼

[@wk3820]

The problem is that consolidation only enables more bad behavior. In a year, you will have five credit card bills and a consolidated payment instead of just five credit card bills.

[@SGDanielSanchez]

Correct, for the consolidation to work yo need to cancel all your other credit cards in order to avoid more debt.

[@tjandcj123]

I think you need to change your mindset before you do debt consolidation or the debt snowball...it doesn’t matter which one you do because once you see the zero balances you will charge up again if you have not changed your mindset.

[@3of11]

Debt consolidation is like the stomach shrinking surgery. A bandaid over the real problem (lifestyle)

[@meganmawhinney]

3of11 Great analogy!

[@mitchgoodday8234]

The farmer analogy is great. Perfect. I'm stealing this when sharing Dave's ideas.

[@insideoutsideupsidedown2218]

Mitch Goodday yep, and you can apply that if the farmer has a choice of a good fertilizer and a great fertilizer, you would use the great one for a better crop. I have beat the odds. I consolidated my credit cards, closed the accounts, have a written budget and are in baby step 2. Never ever again will i use debt.

[@BCRStyles]

Ouch, this one hit me hard. Thank you

[@pmbarro]

Why baby?

[@mopar21]

@@pmbarro creeper

[@raulgolfs]

Heard this one on the podcast and thought at first maybe it would be a good thing to consolidate to one low interest payment. But in the end I guess it’s true. You just technically moved the debt. That feeling of I saved money is there though. I’ve felt it. And then I’m not that upset that I still owe the same amount of debt in the first place. So the intensity is low. I agree, CONsolidating does not help! Battling the man in the mirror every day and telling him. I’m in control. MODIFY BEHAVIOR. 👍🏽

[@hopefulincalifornia8615]

Balance transfers lower interest rate to tackle the debt faster.

[@ekitten89]

Agree - the transferring of the money does NOT change your behavior. The lower interest rate does NOT change your behavior. I say this as someone in her *third* 401k loan to “consolidate” debt - how did I get here THREE FREAKING TIMES? -I moved my money around & continued to spend, while I was still making that “one”, consolidated payment. Alas - I came to Dave about a year into this 3rd consolidation loan, and I now see the error of all my ways! Because even after I consolidated everything a year ago, I was still charging & using credit for money I didn’t have. THAT debt is now part of my current debt snowball & I’ve paid off 7k since January! It feels awesome, living within my means, on a budget, & hardcore paying off debt. All the consolidation & lower-interest loans won’t modify your behavior until you’re fed up & ready to stop the insanity. Once I’m out of this mess, NEVER AGAIN! And no more 401k loans, EVER. Dave’s the man, wish I’d found him 15 years ago! Good luck & God bless, everyone!

[@raulgolfs]

vicki - Minnesota to Florida! Yeah I did this on my budget and I feel like it’s been helping. I thinks it’s really just by the numbers in the end.

[@raulgolfs]

ekitten89 congratulations on paying off 7k so far! You got this! I feel ya on getting these consolidation loans it really messes with your head thinking you’re doing something. Ha. I wish I followed Dave’s plan 10 years ago too. I noticed by uploading my budget on this platform it’s been helping me stay accountable! Almost got $10,000 paid off from a total of $40,000. Can’t wait to get outta baby step 2! 🙌🏽. We got his! 💪🏽

[@josephpollachek6341]

Yeah you can’t borrow your way or out of debt but if you have a low income and you have too much to pay every month like cable insurance phone bill or other expenses then a debt consolidation loan is a good idea to get rid of all those payments and make it into one payment this way you still have extra money on you for emergencies only duh

[@danielroque02]

This statement is absolutely correct. My wife and I consolidated debt and promised each other not use those cards again well less then 2 years later we owed the consolidation and the same credit cards. Now trying to figure out how we change our thought and behavior with money.

[@StevenBrooksBand]

A couple of ideas. 1. put the credit cards in a plastic bag, fill with water, freeze. 2. cut up the cards 3. pay off the cards and close the accounts. Debt Consolidation works if you change your spending habits. Hope this helps you guys!

[@98leight]

🤡

[@bootscamaro4221]

I was on 20k I went to discover personal loan and give me 10.32 percent for me I saved a lot just control my spending now 👍🏻

[@DanielIles]

It works if you can think strategically. Lower interest rate or payment is not something that should lessen the pressure!

[@shawtylo5045]

Yes everything you said is true and obvious. Like clearly you can’t get out of debt by borrowing but it is advantageous. ultimately debt CONSOLIDATION IS HELPFUL but in the end you will need discipline to keep yourself out of the same situation.

[@morbotheturtle3796]

The only time I’d argue that debt consolidation can be a wise choice is with bills (especially medical) in collections. Making a settlement can save you thousands and get those debts out of collections sooner. You still need to pay off the consolidation loan with gazelle intensity though!

[@imeldarubioleyva1629]

so rude. unchristlike.

[@alicejosephine1921]

A couple very intelligent people suggested I consolidate to a lower interest rate at least. So thanks for the lecture but I do not agree.

[@ninakitchens5098]

Where is your advice to fix the problem. I accept your rebuke but this video seems like all insult and no solutions.

[@gabrielfenelus6962]

here's a solution for with an interest rate of 1.8% get all your debt cleared out

[@chrisstaub5880]

His advice for fixing the problem is to follow his Baby Steps, which includes paying off debt with the Debt Snowball technique - list all debts smallest to largest, pay minimum payments on everything but the smallest, put every spare dollar you have on the smallest debt. He doesn't go into detail on that here because that wasn't the point of this particular video, but there are plenty of other videos on his channel elaborating on the Baby Steps and eliminating debt.

[@orangedrone]

But, if you consolidate into a set term (like 48 months opposed to forever/revolving) then you did actually improve your financial situation.

[@lordcathankavanah4700]

orangedrone Lord Cathan: This is a great thing i have never seen before my Uncle introduced me to a great man, guruhackz; a hacker, ghost hacker. He make $5000 in my credit card account without collecting no money from me till his work is done to my account and I’m so glad about this ❤ 😍 it is great pleasure with love sharing his contact with you people if you need help too. Contact Guruhackz : [phone]

[@insideoutsideupsidedown2218]

Did you closed the credit card account?

[@lordcathankavanah4700]

InsideOutside UpsideDown i didn’t you can contact him on there

[@terrellsmith6715]

I just move a 17% and a 25% to a 9% 😊

[@NIP28]

Foh u tryna keep us broke 😂

[@momimperfect9700]

thanks for the advice! I feel like for me a non-profit credit counselor is helpful because I need the coaching and structure they offer. I feel too overwhelmed that I didn't know what to do. I don't want to go into the whole situation, I share more about it on my channel. The main point is sometimes it is ok to get help. Sometimes we are not strong enough to do it on our own and there should be no shame in that.

[@HillChris1234]

I love this perception people have that everyone who has credit card debt is just financially irresponsible and has bad habits they need to break.

[@erensart]

its funny how we dont stop and think of how a majority of people are straight up being screwed over. Workers who are the back bone of our country are struggling even when they work day and night. Things are just getting more and more expensive. Take a moment to be realistic and empathetic to those who tried their best and even then it wasnt enough due to bs life brings out of nowhere.

[@nodak81]

Consolidation loans are impossible to get. At least for me they were. "You have too much debt"...yeah, if I didn't have much debt I wouldn't need a consolidation loan would I?

[@jadiecakes3241]

Debt consolidation is good because you normally end up paying less interest, but you need to cancel the cards once you pay them off, or you end up back where you were. My consolidation saved me over 2k in interest. And lowered my repayments, so i was able to build an emergency fund.

[@renewilder9735]

Jadie Cakes who did you use? I know current credit score matters but I’m just curious

[@jadiecakes3241]

@@renewilder9735 i'm in Australia and i went through ING. They have an 8.99% personal loan (they don't do consolidation loans) but it was way less than my other loans/cc in interest. Our credit scores don't really come into how it works, they look more at what debt you have and how much you make and use that to decide on what you can afford. I believe our responsible lending laws are stricter.

[@renewilder9735]

Jadie Cakes thank you!

[@dipakrawal1509]

Did you address your issue why you got into Debt in the first place?

[@AureeyaElsinaen]

When I decided to get out of debt finally I moved all of my credit card debt to a zero interest for a year credit card. I then paid off all of that in a year. It did help me only because my interest rates were 25 percent it was killing me.

[@motoryzen]

Congrats, legit. You are the exception. Most people who consolidate their debt with these dime a dozen companies DON'T do what you did... What you did is HOW to use debt consolidation as a gentle helping hand push to get starting on the track run to knocking out the debt. Most are idiots who just pay the minimum payment ....again..and the debt ends up the same or bigger than before because those idiots refuse to see the debt consl companies CHARGE a certain total percentage up front to add the to the total for getting that interest lowered ( long story short...they BUY the total debts from all of the vendors for dimes on the dollar..and then offer the individual a lower fixed interest rate to make that sale with the individual...for a fee..which ends up being between 5 and 12% of the total debt remaining as of JUST before that company bought the debt from the debtors.)

[@Suhhdew]

I get it. Dave sticks to advice because 90% of people who consolidate debt will just pay the minimum and be in debt longer, but for you other %10 like me who aren’t like that, if you can consolidate and it makes mathematical sense, then do it, I did it and now I’m debt free.

[@oneluv79]

How about the fact that cc are 30% and a consolidate loan is 8%? How is that dumb, i dont understand how this is bad..it will get paid faster

[@DannyZRC]

People doing debt consolidation usually take a maxed out credit balance and transform it into a new debt (the consolidation loan) + freshly regenerated credit limits. For people who fit the mold of "spend until your card is declined", which is not an insignificant population, the result of the debt consolidation strategy is re-maxed cards in addition to the consolidation loan of the previously maxed cards, aka more total debt. The venn diagram of people irresponsible enough with money to be in serious debt but responsible enough with money to use a consolidation loan correctly is two non intersecting circles.

[@afrodude4782]

@@DannyZRC but isn't the real issue that peoples spending habits stay the same?

[@jadiecakes3241]

Its definitely smarter to consolidate because you save thousands in interest, but people dont change their habits, so they use the credit instead of cancelling the card.

[@steponefinance4282]

We did 4 debt consolidation loans since 2001 and we did go deeper into debt every time. After the first time you think it will work, then the 2nd, 3rd and even the 4th time. Debt Snowball is what finally got us to where were at today. Big sigh

[@HarryLopez82]

Spending has to be made...if you have a mortgage living paycheck by paycheck..who else is going to help me get the money I need to pay my debt when the debt was made it was necessary

[@thasty100]

Wow! I heard a lot of criticism but no good advice! if I can move my Debt to a lower interest rate loan that pays more toward the principal and less to finance charges it just makes sense to do so don’t you think? Sure your just moving your debt to another loan but if its a lower payment and your money goes more towards paying the loan off quicker that just makes sense.

[@gluckystrong3336]

Exactly!

[@cathyl7944]

“No, you didn’t, you doober!” 😂

[@marilynmarcelli270]

Lol

[@businesstwentytwelve7615]

I can appreciate the information, but the pomposity and condescension offset his advice. Pass.

[@bobbydrives7012]

Papa Dave droppin’ those truth bombs

[@casperaudi7476]

Consolidation Will hurt your credit it goes into en escrow account when they have your money in 4 years then they will negotiate the money with the credit card companies and your credit goes down STOP OVER SPENDING PEOPLE

[@MasonMadden-l4u]

I’m doing everything good Dave. I don’t spend more than my means. I’m 80k I’m student debt with my loans going UP every single month. I promise you I will be back here to this video after I pay off my debt through consolidation. I fucking promise that! I will have this bullshit paid off in a few years and until then I’ll try to make more money every single year. Here we go into the royal rumble with this bullshit. I’m taking a fucking stand and WILL do it. I will be the 10%! I fucking promise!

[@ripplerfx]

I need some solid advice. I have about $27k in personal loans with an average of 23% APR. I got an offer to consolidate all the loans to one payment at 13% interest saving about $730/month in payments. However the new loan would extend by 2 1/2 years. Is it worth doing? I’m leaning toward yes because the new interest is lowered by 10% and I’ll save $730/month in payments

[@vonnblacker2404]

Some people didn't get in debt for pleasure. Some lost their jobs during the pandemic and had the COVID-19 and used monies and credit cards to get well. This is the first Dave Ramsey talk that I really felt bad for people has used credit cards to survive. This teachings seemed like belittling people who has to use their savings to keep a roof over their heads. They don't need a bunch of scriptures being spewed out them. They already feel bad. Everyone in this situation was not shopping at Saks; many was shopping at The Goodwill and are still going to the local food banks!!!

[@hollyb6885]

Consolidate to a LOWER interest rate (preferably 0%). Interest will kill you. Then DO NOT run up your credit cards again!!! Dave is wrong on this.

[@netteofthetaureans]

Well, this was of no help!

[@iamwell5654]

Omg! This guy is so condescending. Tgej quoting the Bible & throwing out quotes? What is this? 1960s Sunday school? Goodness

[@Jerkoffinajar8]

I only got about 10k spread over two cards who SPECIFICALLY should I goto to get it consolidated and quit getting screwed by the intrest charges !? Please

[@DeepInfernoRising]

So you gonna give any advice or just belittle people and make them feel worse than they already do for making mistakes. I watched this cause I wanna be an “adult” and make my life better and was hoping you would give advice but I didn’t get that

[@Adam-ts5gc]

For anyone watching this: please do yourself a favor and seek actual debt consolidation advice. Dave’s advice can be broken down into: “All debt is bad. Pay it off the hard way and grow up”. Seems like he doesn’t understand his advice doesn’t fit everyone’s situation and debt consolidation can be a great tool to get out of debt. For example: when you consolidate your debt, you can get a better interest rate than you’re paying with your credit cards. When you consolidate, your monthly payment can drastically decrease and lighten your burden. You can end up saving a lot of money this way, so please ignore Dave on this video.

[@tybiasbutler343]

Ok. A lot of talking, but nothing said, really. What I got, don’t go for a consolidation loan before changing your bad habits. Didn’t answer the question, but thanks for the info.

[@Pilot_the_Dune]

30% to 10% interest is a big deal. Not sure why the title of this vid doesn't address if debt consolidation actually does anything. Ramsey is just fussing at you on a hypothetical. Strange behavior.

[@1978strong]

You fuss at people for no reason at all. People struggle sometimes especially nowadays !!! Bills pile up on them with cost rising daily for goods !!! People just want debt help ; not more room to party. We want relief to live. Your irresponsible for making this bad video !!

[@semperfi-1918]

I know with my refi im not paying it off right away but i am looking into getting cash flow moving and get the cash flow by the end of the year to 15-1700 dollars per month. This funds will not be used for anything but debt pay off and reinvesting. Some will be a trip to see my gf but other than that.... thats it.

[@brolly2439]

Hi! any one have recommendations for debt consolidation companies that worked for them? There is so many.I definitely feel I would benefit and would be able to pay off my cards faster. my bank was recommending money management international or navicore solutions. Thank you

[@rhiannonn7440]

Debt consolidation is the only way out for my situation I am simply being buried alive by the high interest rates on my credit cards and couldn’t climb my way out. Now I have one lower payment paying less than half the interest I would have if I kept paying the credit card directly. For me this was my only way out and I’ll tell u one thing I have zero desire to buy bullshit now and I never want to see a disgusting 28% interest rate again

[@3094usmc]

88%, so your telling me theres a chance Dave lol. It works for big spenders with big paychecks that eventually grewup.

[@Dunnfamily8242]

What are your thoughts on consolidating $25,000 bills for the goals of to raise your score for 6 months because I have to be in my job for 2 yrs and this way, I can have a small payment to free up and update my current home more . 6 months later, sell my home ,pay off loan, and buy a new home cash?

[@prettygirl2105]

I am currently doing a debt management plan. They were abe to reduce my interest rates or negotiate my interest to zero of some cards. I had a ton of high interest cards. Monthly payments are reduces by $500. You have to change your habits. I have one open card. You can’t open any other cards or use any cards on the plan. I am down almost $10,000 since December. My credit score has not been hurt.

[@stevendunn7928]

If you've done some good "baby steppin'" and established a good habit of controlling your spending, would it not make sense to get a consolidation loan that significantly reduces your interest? It seems that intentionally staying with high interest rates would be an unjustified expense if it would be reduced.

[@ChrisandDanielMusic]

can anyone recommend a video that actually talks about the subject?? children like to hear themselves talk to get tons of attention like empty rattling cans. this kid loves to hear himself talks. HE needs to grow up.

[@RT-vw6yw]

Agreed. He's also a little hypocritical in his approach and attitude towards people when quoting scripture in the same breath.

[@davidroussell5118]

Dave's wrong here and not making sense. He seems to be suggesting that a debt consolidation loan is bad because you're borrowing money to pay off debt. But, the loan must be at a lower interest rate than the credit you're paying off. And mature enough not to create new credit debt while you're paying it off. Dave seems to suggest you can't do both, and he's wrong.

[@Aaron3Ni]

“You Dooper” 😂 classic

[@chriswitherspoon9784]

Im glad I found this guy so I wouldn't be a Dooper!

[@zaytovenent1096]

@@chriswitherspoon9784 almost a dooper but i saw this before i applied for the debt consolidation 🔥

[@purgatoryexb3985]

I'm thinking abt applying for a 7000 dollar loan to pay off the rest off my current loan which is 4000 and then I can pay off 500 credit dept and still have over 2000 to invest into my reselling side hustle is that a good idea and if I except the other loan it is cheaper then paying my current loan and my credit card debt together essentially saving some money but I'll have to start all over and have another 4 year plan to pay off the loan is this w good or bad idea