Debt consolidation: Exposing the false beliefs of the financial world
Myth: Consolidating debt is a good idea and a great way to lower my monthly payments.Truth: Consolidating debt works much better for the bank than it does for you.
The truth is, success in personal finance depends on what you do, not what you know. Consolidating debts makes sense on paper, but if you don't change the behaviors and disciplinary factors that got you into debt, you'll wind up even deeper in debt. If you don't stop borrowing money and learn to hate debt, consolidating your debts just frees up more room to go deeper into debt. It happens time and again where families consolidate and get a lower payment, then turn right around and rack up more payments until they're worse off.