Debt Consolidation Feels Like Control, But It Delays the Win
Let’s say you’re juggling 5 credit cards and 2 personal loans. You’ve tried keeping up, even throwing extra payments at them, but the balances barely move. The due dates feel like a second job. A family member suggests debt consolidation: “just roll it all into one payment.”
Sounds tempting, right?
What is so enticing about consolidation?
The math feels better – lower interest, smaller payments, fewer statements, one due date for the bill
Sense of control and simplicity, fewer reminders of shame or regret
But if your goal is to get out of debt, consolidation is a tool so long if you put in the work. You are the solution. If you have the discipline to avoid new debt and stick to a budget, consolidating might be in your favor. But it’s important to keep your eyes wide open:
Consolidation is just moving debt around. It creates one big amount with one payment.
It’s a quick, “fix it fast” approach focused solely on math and doesn’t address behaviors and decisions that got you into debt.
And worse, it might give you a false sense of progress and tempt you to add more debt.
For some, especially when it feels overwhelming, even consolidation doesn’t feel like enough. Bankruptcy rears its ugly head.
But before going that far, consider this: There is another way, one that gets you out of debt but also builds strong money habits and helps address the root issue.
Try what my family did:
Get on a monthly budget and see where every dollar goes. That tells you how much you have left after all expenses to throw at debt.
Temporarily pause retirement contributions. Yes, this was hard for us to swallow, too. But retirement is an additional goal to paying off debt and when there are many goals, there is slow progress on all of them. So narrow your focus to one goal and speed up your progress. We wish we’d done it sooner.
List your debts smallest to largest, regardless of the interest rate.
Work the debt snowball: Start paying off the smallest debt, throwing everything at it, and then roll that payment into the next. Each win builds up momentum. Consolidation drags on—with no wins until the very end.
Never take out debt again. No more new debt. Use cash or debit only. That simple (and hard, if I’m being honest) decision protects everything we’ve built.
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