Why Debt Consolidation Doesn't Work!

[@TheRamseyShow]

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[@abes.4040]

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.

[@Omonike88]

You are disciplined. CONGRATULATIONS!😊😊😊

[@fleurelise997]

Brilliant strategy. Better quality of life is no debt vs having lots of stuff that's financed 😀

[@KnockoutInvesting]

Don't buy on loan ever again. Don't use credit card ever again.

[@brandonswhispers]

Way to go!!! That’s awesome to hear.

[@stevee8318]

Amazing, good work Abe

[@maxbie123]

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.

[@Coolfusis]

This is the issue! I "suggested*"it to a family member who had racked up thousands in credit card debt. I had included "...as long as you stop using the credit cards." She got a consolidation loan then maxed out the card again, plus a new one. I don't suggest things to her anymore. *(In the sense that I said it was an option for reducing the time she could pay off the debt. I didn't tell her to do it.)

[@writewoodcreations7091]

Truth. My sister has repeatedly consolidated debt only to rack it up again and now she's over 60 and drowning and there's no wiggle room left. If she'd only gone through the fire and got the psychology right years ago, she'd be in great shape.

[@leathelandlady]

100%

[@cjzanders5430]

Consolidating debt and being discipline with money are still able to exist in the same universe or in the same person. It is possible. Both are also smart if you can use that money to pay off the debt in the first place.

[@leathelandlady]

@@cjzanders5430 I agree it's absolutely possible, it's not probable though. Many haven't addressed the underlying bad habits.

[@timhopkins4372]

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.

[@josephgodwin9653]

That's the difference. You never had a spending problem. Most of Dave's target audience have terrible habits. However they are trying to do better.

[@CC-ti1zx]

Whobdid you use to consolidate

[@Larry_M6790]

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.

[@ahumm8280]

Next time you pay it off, destroy the card! Good luck!

[@AllinTMC]

Been there

[@insideoutsideupsidedown2218]

I consolidated credit card balances. And closed the accounts. Never again.

[@marktheshark2569]

If they were just small purchases why did u spend $21,000. Next time after u finish paying the card off get rid of the card

[@631knm]

What debt consolidation company did you use?

[@TommyG11814]

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

[@lilbean4606]

Wow congrats 🎊🍾🎈🎉

[@youngtimer964]

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.

[@rickfowler5342]

That was ME, multiple times from 4-14 years ago! I actually kept going deeper and deeper into debt. You have to get gazelle intense. You have to stop using credit cards. You need to apply the next level stuff like a second/third job, beans & rice principle, selling off everything but the kids, and not eating out. Do the stuff listed above IN ADDITION to things like a zero interest card transfer, and THEN those things can help with momentum.

[@jtim83]

Yes, that was me as well. Got out of debt before.... then.... went right back into debt. Finally got fed up "for real". Had to actually change my thinking. Kinda like someone who loses a lot of weight. If they don't change their mental, then they will just gain the weight back.....

[@jerryiverson1732]

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.

[@eriksdodges853]

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

[@rickfowler5342]

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!

[@mikeb6994]

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

[@twiWright25]

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.

[@itsokaytobeclownpilled5937]

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

[@itsokaytobeclownpilled5937]

spot light Yes

[@thegreatelv6408]

Exactly 👍

[@tjw1861]

I’d rather be paying zero than 15 though ffs

[@scuba535]

TJ W if they don’t change the habit of using the 15% credit card they’ll just use it again.

[@tjw1861]

scuba535 if they have reached the position of deciding to change their ways I’d tell them to work on the high interest accounts first if manageable and just more gradually chip away at the zero interest debt.

[@musicalarchery]

To all of you saying "I'd do both!" - Dave agrees with you! 2:36

[@kadytawney9915]

Successful investing is about managing risk, not avoiding it.

[@michaeljohn4199]

Investing puts money to work. The only reason to save money is to invest it

[@RamenReignss]

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

[@bearshooper77]

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 KZbin. Thank you.

[@wtk6069]

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.

[@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 👍🏻

[@ThinkMoneyBenny]

lynn i love credit cards, i buy everything with them. financial savvy folks use this to their advantage.

[@---cr8nw]

Depends on the amount of debt and the interest rate. If you're getting hit with $200 in interest charges every month, move the debt to a 0% card. If you're getting hit with $35 a month in interest charges, just buckle down and pay it.

[@MSotelo503]

Some see it as 0% apr and 12months to pay it off score! Others see it, oh I got more time to pay my debt plus add to it.

[@---cr8nw]

@jeremiah sams, if a person is in debt -- carrying a balance over month to month. That's the only reason to even consider getting a new card with a 0% introductory APR.

[@AmandaHugenkiss2915]

When you xfer to a 0% you still pay a xfer fee, maybe 3-5%. But if you are careful with it, it can be helpful. Lowers the minimum payment so you can snowball other debt until you get to this one, or pay this one down faster. Anything that reduces the money leaving your wallet helps.

[@trufflehound1960]

I'm British but your core advice is universal. I love your channel the guidance is applicable to everyone with ears to hear. I'm following your advice and have rung the debt free bell as a new retiree in the UK.

[@TheHealthWealthProject]

debt consolidation doesn't fix poor spending habits

[@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!

[@ryantaylor6530]

moving the debt around does not fix the underlying problem of why the debt is there in the first place which means it won't go away.

[@kevinb8881]

Exactly, balance transfers don't mean squat!!!

[@orangetruckman]

You helped give me the advice that I didn’t learn from my family or on my own. You said things that I needed to hear and I thank you for helping guide many others with your great advice! It is simple and possible, just not always easy. That’s growing up 😇

[@Xantank]

Cancel cable. It’s overrated and internet is here

[@andycraddock7677]

john son of Morris : Completely agree! And there’s millions of things out there called.....books! Read any of the 100 greatest works of literature from whichever list appeals to you (there are dozens of such lists- just search) Finally - you can get a broadcast TV antenna for about $25. Get around 12 channels where I live. That’s plenty. If you desire more and have high-speed net, the Firestik is only about $45 - plus Prime. Stop forking over hundreds of dollars/month to your cable provider. It’s contributing to keeping you poor. I know one family willingly paying over $350/month for their cable service. Crazy!!

[@einstein1102]

What is cable? lol Only paid for like $20 sling during the world Cup and cancelled after that. Never really had cables my entire life coz I don't really watch TV anyway

[@Th3W4tchman]

Streaming is definitely cheaper. But you need decent internet for that for consistency.

[@bobmarker6812]

I put up an antenna. I have never had cable. It's all on the internet now.

[@aolvaar8792]

1024 GB/mo download limit @ 300mb/sec = $80/mo, unlimited = $130/mo

[@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?? 🤔

[@tylersanders2388]

Applico that’s against Dave’s whole point. The problem people with debt have isn’t the interest rate at all. The problem people have is they spend what they don’t have and won’t stop spending. If you can have some discipline and pay off the debt, the interest rate is going to be pennies.

[@johnjaso385]

I don’t think you can out smart Dave.

[@ApplicoInc]

@@tylersanders2388 Absolutely agree w/ you! It's just tough to see that money go to interest when viewing the issue from a financially disciplined background.

[@colivart]

John Jaso It’s not about outsmarting Dave. Using the no interest card will be faster and cheaper. It’s just that the average person will see 40000 slowly progressing as they pay it down and eventually quit. That’s what he’s arguing.

[@travis1240]

Dave's arguments are emotional. They're not for mathematically oriented logical people. If you are mathematically oriented and logical, you probably are not in credit card debt to begin with.

[@dipakrawal1509]

Dave has a fearsome demeanor either naturally or intentionally and this really works for his audience. He is straight to the point and every time I am asking myself what should I do, I get his picture in my head and ask 'What would Dave do'? He come's in my dreams too and I don't understand the American lingo that much as I am in UK, but I get what he says and it applies similarly in UK. We need a Dave Ramsey in UK too.

[@2MuchSwag4Funzies]

I didnt want to watch this video because I was convinced consolidation was the answer. Instead, I learned something valuable and really opened my eye to the real issues. I'm still going to consolidate just to make it simpler but I'm going into this way different than I would have without this video.

[@D.ron.87]

We are doing debt consolidation and it's working, but we also changed our behaviour. We created a budget and made a commitment to each other that we would cut our spending. We just did the debt consolidation so that we could pay it off a little faster than if we didnt

[@nicholasgee1]

Dave, thank you for your wisdom. This was me for years. I recently started watching your videos and it changed EVERYTHING! Its very hard to get started fixing the problem, but once the ball gets rolling its such a great feeling! Thank you sir!!!!

[@jeffreyburnwood8084]

I started to do what Dave says; and it hit me hard when I payed the little one, leaving me with $0 in my bank, that opened my eyes about how much debt I have. Thanks Dave, you saved my future self by making my present self to think about the stupid things that I did in the past.

[@GR-uc1gq]

Started with 7100 down to 3000. I wanna finish this already!

[@TheLethalIntrospectionCrew]

Stay hungry, my friend!

[@alex2143]

Good to hear! How are you doing now?

[@JonathanG1103]

Call the wambulance 😂😂

[@josjrq8849]

My fav Dave line!!!♡

[@tonyd9312]

Also, the Credit card companies will lie to you about the interest rate on the transfer. It may be 0% initially but they are slick about NOT making it clear for how long or what could cause it to change. Examples: 1. say if your late on 1 payment..it may be that they the interest rate will then change to the default. 2. Interest rate may be 0% for a limited time and if all is not paid within that time frame in the "fine print" the rate could go back it it's default amount and be retroactive from the initial amount of the transfer. 3. The customer service rep may tell you that the rate will be 0% but leave out the fact that it is an adjustable rate. It maybe too late after the transfer when you've received your first statement and realize in fine print it says "adjustable APR" Meaning it is at their discretion when they can change the rate and for how much. 4. They may still add minimum finance charges or a high processing fee every time you make a payment. Which will still net them some money on that loan. I tried telling a friend that and he would not listen and they worked him over REAL GOOD! Follow Dave's plan he laid out for paying it off.

[@billyjobobb]

Dave has said this how many times? No product has been as aggressively marketed in the history of the world than credit cards. No bank is going to lose money just so you can clear your debt and break your dependence on their product. Banks offer these deals because the banks make money off them. You’ll move the balance, feel like you did something and go celebrate with a meal that you put on a credit card! A year later the interest kicks in and you owe just as much. All the payment that decreases the balance just allowed you to charge new stuff to the card! Plus now those cards you transferred a balance from have racked up new charges because a store had a sale you couldn’t refuse.

[@elliermrz6725]

If you’ve discovered Dave Ramsey and have not made an effort to change, you deserve to be in debt and all of the stress that comes with it. I just discovered him about a week or so ago and I have already started implementing his teachings!! Think people!

[@MartinLabuschin]

whats your progress?

[@lilmoosic]

What a bunch of whiners on here, holy heck. Dave I'm destroying baby step 2 and you are changing my life, sir! Eeyore is no longer my spirit animal!

[@kayleebeaumont8659]

Buckle up buttercup. That's hilarious how I missed that I've been listening to you for almost a year.

[@lilbean4606]

It’s been another time really does fly doesn’t it bro ?

[@linuxsurfer2002]

"I did not change your life. I convinced YOU to do it." Awesome.

[@dinky19810]

Delay pleasure. That's masterpiece!

[@HeyBuddays]

Look at all the "debt consolidation company" employees in the comments. lol

[@DominicClaxton]

I agree with Dave's psychology but would still consolidate to a zero interest card. This is what I did. And it works if you address the core problem of spending on credit. On a $40,000 credit debt you're paying around $500 a month in interest. Which is $6000 saving in a year if it takes you a year to pay off.

[@whittneyprice173]

Thank you for the free education Uncle Dave ❤️ you’ve taught me alot

[@lov4andy]

Thank you so much!! I am in $40,000 debt, I never realized how, what or why I was spending money.

[@LukePighetti]

I consolidated my student loans from 9 loans averaging $6.7k a piece into a single loan of $60k. I did this because at the time I found it very difficult to keep track of all these different lenders and I kept running into late payment issues including one loan being sold off to a collections agency who tried to charge me a $5k collections fee. (I was able to get the lender to take the loan back from them and waive the fee, but that's another story.) At the time I was glad to have all my ducks in a row, but now that I am ready and able to start paying them aggressively, I wish they were still broken up. Why? I recently paid $10k of line-of-credit debt in six weeks and knocking it out felt really good. I'm not looking forward to the slog of burning through a $60k debt that isn't backed by equity like a mortgage. Anyway, I'll get it done. I wish everyone else progress with their finances!

[@LukePighetti]

Oh, and if any politicians are listening to this, my only request regarding student loans is to peg the rate at the fed interest rate + 50 basis points and let us defer the taxable event until after we graduate so we can pay them with pretax money. I don't think that's a big ask.

[@Ndemlaughs]

happy i changed my habits over the years. made it easier to work my way out of the little debt I had.

[@KrystalToddCPA]

Well if they consolidated onto one card AND get aggressive they can pay it off within the 0% APR rate window. So it can work. $6,000 closer to financial independence.

[@billyjobobb]

The credit card company that is offering you this deal is making the bet that you won’t change your ways and soon you’ll be paying them $6000 a year. You probably also won’t close the other cards so a year from now things are way worse

[@KrystalToddCPA]

@@billyjobobb Yes I totally agree with you and what Dave said. If you have changed your mentality then you can an extra $6k and work toward being debt free. Most people will do what you mentioned unfortunately.

[@LAMBNATION98]

He said if you put down only 5k per month like it was chump change 😂

[@twiWright25]

You kind of have to read between the lines on this one. He's assuming their combined income is high enough to do it. Especially if they're able to make their payments on $40k of debt. It'll only take about 100k household to do it.

[@LAMBNATION98]

@@twiWright25 yeah it just caught my attention when he said it.

[@mannyjeanpierre4062]

Amazing results require amazing action. He's challenging ppl to ride up be better and take charge. Not easy but not impossible

[@ErrorPagenotFound-ig1cy]

You don’t have $5k extra a month? Peasant

[@LAMBNATION98]

@@ErrorPagenotFound-ig1cy I am but a filthy commoner with no more than 2 shekels and a crumb of bread.

[@jthompson6189]

I disagree, I put my credit cards on a 5% loan and saved myself nearly 5000 through the year as I paid it off. That's more money that can go to the debt, to pat it off faster. Yeah, obviously behaviour has to change or its meaningless.

[@Kojow7]

@Terry Monks, you are saying the same thing as Dave Ramsey is saying, so what exactly are you disagreeing with?

[@austinhamann704]

@@Kojow7 Dave is not differentiating between Consolidation LOANS and New Credit Card Consolidation/balance transfer offers Consolidation loans are great if you stop spending on the cards, but the credit card company offering balance transfers with a short-term low (0-2.99%) interest rate continues getting people in trouble with high-interest charges if they don't pay it all by a certain date

[@NiallC980]

The awkward moment when you're watching this eating a packet of choc chip cookies....

[@dottie1966]

lol just had girl scout cookies and coffee for breakfast. Time for some self control.

[@PassportBrosBusinessClass]

I owed $15,000 in credit cards and $16,000 in student loans. After getting a scholarship for a MS DEGREE, I took out a student loan large enough to consolidate my credit cards and existing loans. The student loan is deferred for a time after graduation and has far lower rates than the Credit Cards. Consolidating stopped the harassing calls. Consolidating stopped the threats to garnish me. Within 6 years of working I paid off the consolidated bill. DAVE is wrong.

[@MissCDM1979]

I just paid off my creditcard. Just my loan on my house is left.

[@lavonnealexander6936]

Congratulations 🥳 I paid off my credit card 💳 now student loan and government checks.

[@kayceebrown81]

Haven't used consolidation before but my father in law did it and the math literally never added up and he ended up maxing out 5more credit cards and also had a several hundred dollars payment every month that he couldn't get out of or decrease and unfortunately they severally overestimated his income and it left him with less than $200/mo for food and discretionary. He really struglled and would have been much better with an avalanche or snow ball method.

[@whatwouldpicarddomakeitso9607]

Thank you mr Ramsey and Team. I agree absolutely with EVERY word you said. 💛

[@Abel1120]

i just turned 19 and now im debt free.... thanks dave...

[@1redrubberball]

When I had credit card debt, I was able to keep most of it on zero interest deals, while paying it off. I had debt in the 8-13% range but it still helped a great deal.

[@olliehopnoodle4628]

Yeah, I did a lot of those 'transfer your debt to us for 0% for 6 months' and focused on paying them off. Good for you for paying it off!

[@1redrubberball]

@@olliehopnoodle4628 Thanks! Some of mine were for as long as 15-18 months. The balance transfer fee does act as interest would but is generally much lower, so one can come out ahead!

[@olliehopnoodle4628]

@@1redrubberball It's been a long time since I played that game (25 plus years!) so things have probably changed and my memory is probably bad. Back then they would send you a 'check' that you could send in to pay off or pay down another credit card. Keep up the good work. I "retired" at the end of February and am in my mid fifties. The trick for us was to live below our means.

[@Lee-dn3ou]

Consolidation can be part of the strategy...but Dave is right you have to fix the spending problem or you will make your problem worse.

[@racpatrice]

I think doing both consolidating onto one card for a much lower interest rate as well as cutting back on unecessary purchases will help them get out of debt faster..but I do understand that Dave is addressing poor spending habits

[@racpatrice]

@Jane Miguel I'm debt free but thanks . I also don't live in America

[@ighoathletics-4650]

I disagree with Dave the interest rate is part of the problem.... they should also stop using the credit card completely and consolidate the debt into 0% interest rate while paying it off with almost everything they make. I did the same thing with a 60k debt moving part of it into 0% APR 8 months later I only have 30k left and I should have that paid off soon, btw used that 60k as part of down payment for a house.

[@nephetula]

That $40k in credit card debt is costing them $600 to $750 EVERY MONTH in interest! But that's a figure that they probably don't see because they have many credit cards, and people only tend to see the interest charge on whatever (one) credit card bill they're looking at. That's a new car payment, or half of a house payment, that they're literally throwing away every month.

[@tilldeath6655]

Just wanna say thank you for going threw all your stuggles to show us the way to live like no one else so latter in life I can live and give thank you!!!

[@TMoody]

God is good. This changed my life.

[@tylerparker3024]

5000 a month just on credit card payment? Why is it that Dave thinks everyone makes money like that?

[@insideoutsideupsidedown2218]

He was using it as an example

[@RossCampoli]

Agreed with other comments on here - you can do all these things and benefit from lowering the interest rate as well. Dave’s hardcore when it comes to credit card debt, so it’s an on-brand response, but that doesn’t mean it’s the only answer.

[@Sinful_Survivor]

7:10 *i dont like Dave Ramsey, no you dont like You*

[@luminous6969]

Woah, I think you got the first heart of 2020, they usually never heart any comments it seems.

[@aguyandhiscomputer]

@@luminous6969 he quoted the video, nothing special about that. Waste of a heart

[@iro3952]

All hail the chosen one🙏

[@Sinful_Survivor]

I just quoted that quote by Dave because it hit home with me, im constantly trying to better myself and sometimes i am upset with myself when i mess up but i try my best to learn from my mistakes.

[@TheLethalIntrospectionCrew]

@@Sinful_Survivor You are a credit to all Kyles out there.

[@cjzanders5430]

It is very possible to use the $100 interest you don’t have to pay every month (consolidated) to pay off your debt within your debt snowball or use it to fund your online reselling business to pay off your debt. Behavior and consolidation can all work for a persons good. It’s not impossible at all.

[@DOGGYDOG1167]

Dave is talking to me in this video. Wow!!! Thanks Dave ..I believe, I'm gonna WIN!!!! Unbelievable...

[@aboutmindset3218]

Fantastic advice!

[@miketheyunggod2534]

It does work if the company actually consolidates the debt. My company does that. We pay off the customers high interest rate (25%) on all the CC debt right away. We then have all the debt in ONE account. We charge 8-10%. I get 8-10% on my money and the customer saves 15% in interest. Everyone wins but the CC company.

[@RamCruiserOverland]

This only addressed the mindset, but not the question. If you have 40k in credit card debt the interest payments are going to grow faster than you can pay it off. Capital One is like 24%. I would absolutely move what I could to a card with a 0% balance transfer and 0% interest offer, and set auto-pay for however many months the offer is good for. Then use the baby step method on the remaining high interest debt. Credit cards aren't evil if you aren't dumb.

[@susanfoley8360]

We have several credit cards, but only one that we use. I have no idea what interest rate they charge, since we pay it off in full every month. We've been doing this for ten or fifteen years, maybe more. It accumulates nice miles, so when we want to visit our daughter in Europe we hardly ever pay for airfare. Our house is paid off. (We bought it with cash.) It's an OK house, nothing fancy. We have no debt on our cars. We have no debt, period. We are retired now, and I don't see the sense of paying interest. We put three kids through expensive colleges, and they graduated debt free, and we had no debt for them either. Live within your means.

[@4everu984]

Student loan just paid off....debt snow ball only way!! This buttercup buckled up. Love DR!!!!

[@tbedre5548]

How could you not like Dave Ramsey ?

[@ryanryan9299]

Woah, I make the chocolate chip cookies in my house. Not my wife, lol! I love you Dave, still on #2 with a few things to go... That snowball is getting bigger.

[@TrollinKirby]

Dave calling me out on using all his free advice to achieve financial success and never giving him a dime lol

[@jakenguyen7374]

It worked for me. I am debt free.

[@ATLJAR01]

I don't have any debt and never will. The caller can get a consolidation loan, just don't use the credit cards again and pay the consolidation loan off early. Dumb people get consolidation loans and then start using cards again. For God's sake people live below your means...

[@marisolpooh1]

You are awesome Dave 😅😅😅

[@ianmowbray3284]

This did not happen over night it happened over many years. They have to change their ways!!!

[@jayfaisa6016]

Dave Ramsey: "If you put down 40k, you'll be done with this debt in a second."

[@TheLethalIntrospectionCrew]

"If you have no debt we don't even need to be speaking right now!"

[@briancohen4269]

How about consolidating the debt and changing the habits. It's not one or the other, Dave!

[@anthonykence9954]

Yes take advantage of the 0% card for 18 months or so.

[@anthonykence9954]

@John Lester will you pay more at 25% or 0 % for 21 months and pay off the balance. And no using the card at all .

[@anthonykence9954]

@John Lester your human you will charge.

[@anthonykence9954]

@John Lester well my credit cards helped me become a millionaire by leveraging them in real estate investments and business. They work if use them right. They are my business partners . Than you

[@openyourmind2840]

I think this is based off of discipline, if you can stay to plan and have a good plan on file I think that debt consolidation would work.

[@timothyy7]

I disagree. I switched all my debt to 0% apr credit cards. I’m burning 100% principle at a faster rate than just staying on a credit card at 16% - 25%. But this video is only tackling on the psychological aspect but not the math. Why not both?

[@JiisTube]

Watch the full video, he does do both. He addresses the psychology first and focuses on that part since it's most important, but he quickly side-mentions that she'd save $6k and it's worth it.

[@dawnelizabeth1828]

Hi Dave, keep up what you do.I've been barraged at TJ Max for their rewards credit card, you're why I'm decling yay, yahoo, yehaw and yippee.Take care older bro. and thanks.

[@adamguymon7096]

The thing about putting anything on a ("0%") DEBT CARD is that if you DON'T Pay It OFF within the time they tell you they WILL CHARGE you the FULL Interest they would of charged you as if they were charging you interest from the beginning plus they will charge you extra FEE'S on top of it! As a matter of fact if you feel that strongly about going that route I'd have that payed off BEFORE you're Due Date even comes around. I understand wanting to only pay the principle and the DEBT Card company really doesn't need to charge all of that but I know they don't need to charge as much as they do. If they only charged a 10.00 dollar fee for every Debt Card they issued they would have more than enough money to make a profit and pay their employees with that.

[@forCHRISTJESUS14]

4:52 Somebody call the wambulance" - Mercy, Overwatch 😄😄

[@nkyryry]

I’m sure they know the problem. Their question was regarding their solution.

[@husker_nation]

I agree and disagree with this. If you're emotional about money, then following about this will work. If you can prove to yourself after doing consistent payments, then consolidating to ONE interest rate vs FIVE interest rates will save you $$.

[@trevor7234]

I bet Dave knows exactly where to find the perfect chocolate chip cookie... probably also knows where the worst ones are too!

[@Thatsitable11]

Love this :)

[@NewHopeAudio]

The issue *is* interest rate. Pretending you can just get over the hill of debt by only paying credit card companies MORE is shortsighted.

[@JenniferPriceSmith]

Dave Ramsay’s problem is that he is fundamentally negative and assumes the worst about people. I did debt consolidation to a 0% apr credit card and it worked for me.

[@articunocc1]

To be fair some of the people on his show are just the worst

[@tiredoftheliesalready]

That is because he sees and talks primary for the benefit of those people. You act like his advise is bad and he is negative, but have you listened to MOST of his calls? People are financial imbeciles because of the mentality that has been pushed about money and credit for years. Granted, he is wrong sometimes, but he is right more often, because the people primarily calling in have already proven how dumb they are with their finances. So...perhaps there is a reason he doesn't believe in people all that much, eh?

[@JenniferPriceSmith]

Paul Beverage First of all it’s ADVICE. Second of all, not all people are the same. Just because SOME people haven’t been able to figure out their finances in the past doesn’t mean EVERY person he talks to is dumb. Third, strictly numbers wise, it would be dumb for them to pay approximately 21% in credit card interest for $40,000 when they could be consolidating it and paying 0 percent interest.

[@1redrubberball]

Assume the worse about people and many of them will never let you down!

[@JenniferPriceSmith]

Big Bubba “so basically” ... no ☺️ I say that because his advice makes no mathematical sense. He assumes the worst In people by saying they’re “idiotic 4 year old children who cannot stop using credit cards”. When in reality he doesn’t know any of his callers. There are plenty of people who have self control and can save lots of money by switching any debt they may have to a 0% interest rate card. You cannot deny the fact that 0% is less than ANY normal credit card interest rate 😂🤣

[@richeneljeanpierre2205]

I can agree to start making payments on those credit cards. But, what about the interest rate you're paying at the same time you're making your payments?

[@helenbreakiron6001]

I had no choice but to file bankruptcy....... And I'm glad I did. That was 12 years ago. And I NEVER got another credit card. If I don't have the cash, I don't buy it. Period.

[@jamesjazzy8040]

They said 0%... What part of that didn’t you understand zero is zero with no transfer fee that means they would be paying no interest. They have the debt you can’t change that of course don’t charge anymore but they have what they have. So you’re all saying keep paying the high interest. Great advice.

[@johnnelwhite]

Just sold almost 20 pairs of shoes and made 3k to put on my 3600 cc balance. Once my payment goes down ill pay the same amount as if my balance was 3600 till its paid off. Then ill put that amount i was paying in the bank each month.

[@Kitchissime]

Not to mention the articles on the website.

[@yaoellassar]

I feel personally attacked Guess I better do something about that and take the advice given

[@kevinjones6970]

"call the wahmbulance" hahahahaha Dave is great