Just Say NO to Debt Consolidation

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When you go into debt consolidation, the representatives try to promise you that you will pay less and get your debts paid off much more quickly.  This is rarely the case.  Instead, you end up paying about the same amount every month PLUS a fee to the debt consolidation agency.

And, what about the promises of reducing those high interest rates or balances?  Nope.  It doesn’t happen.  At least it did not happen for me.  Nothing changed for us.  Well – nothing but paying this agency a monthly fee to just collect my money and send it out for me.  Keep in mind that there are some companies which say they are non-profit — but that does not mean that they are free.  You end up paying for help to pay off your debts.

I was no further ahead.  If anything, I was falling further behind because my debts were not being paid down PLUS I had to come up with an additional amount for the debt agency each month.  In fact, I still ended up declaring bankruptcy.  It did not work.  It made my situation even worse.  These companies make big promises but vary rarely do they ever deliver.

I do not blame my financial disasters on the companies with whom I worked.  I take ownership of my debt and financial failure.  I just share with all of you that this is not a good option.  You can not bank on empty promises.  If you are in financial straits and want to work yourself out of debt, there is only one solution and it is not debt consolidation.  You will just need to work hard and pay off your debts yourself — without help from anyone at all.

That’s what this challenge is all about — learning the right way to work yourself out of debt.  I am giving you lots of tools and tips—as well as a LOT of encouragement — to get yourself out of debt.  It may take a while, but nothing worth having ever comes easy, does it?

Now, this all being said, there are legitimate debt counselors who will help you with your debt.  These can be a great resource if you are  truly struggling and can not get ahead.  This post was about those who are out to take your money and who truly will not end up helping you with your debt.   You can visit the National Foundation for Credit Counseling for more information and to find an office near you.


  1. Tabatha says:

    I totally agree with you but I have to point out an irony… above where you are able to type a comment there is an ad that states “will debt consolidation help? Pennsylvania debt relief”. I just thought it was kind of funny.

  2. Tabatha says:

    I should say… there WAS an ad because it changed now. :)

  3. lisa sparks says:

    One good thing that has come out of this national credit card crisis is that the credit card companies are better about working with you. I have some of mine down to as low as 3%, 5% and ZERO% interest with a payoff plan. You do have to close the account but it is worth it not to pay interest. A tip I learned is that you do sometimes have to miss a payment before they volunteer this info but it does not hurt to call and ask!

  4. Tracie says:

    Tabatha – that is kind of funny — it amazes me how ads pick up on what you have on a site.

  5. Trisha says:

    I work for a major credit card company and yes we do offer payment assistance. There are various factors that play into whether or not a pymt arrangement w a low rate is available. Purposely letting your account go past due will not ensure that an arrangement will be offered to you. Arrangements are not just made up by credit card companys. We are regulated by the OCC (office of the comp controller) and are audited regularly. If we are found to be setting up arrangements just so the client can have a low rate we risk losing the options available to our clients.