subject: Debt Consolidation Mess, Fiasco, (add Other Confusingly Negative But Legitimate Terms Here) [print this page] So you're planning to solve your debt issues by getting yet another loan. You've been considering getting a credit consolidation loan or debt consolidation loan, but don't forget there are other debt relief options out there.
In some (few) circumstances, consolidation loans can be a good option, but watch out. Generally, if you're in this position, you might as well categorize yourself as a "spender." Don't get me wrong, I know there are legitimate situations people find themselves in that were out of their control, like an accident or an unforeseen medical procedure, but most of us move money around because we like to free up money to spend more money. Not that you think through your spending like this, but subconsciously, this is what goes on inside the "spender's" mind. If this is your situation, I'm sorry because I'm just like you, and I didn't listen to all the warning signs and ended up having to learn this lesson by experience. Wow. Depressing. So listen up.
This might be your last shot to learn without having to go through the same difficulties that I did. Yes, I consolidated - I moved my credit cards and my car loan to a second mortgage which brought my payments down from $700 to about $300 per month and gave me more interest that I could write off on my taxes. Yippy. But, as an uncured "spender," consolidating only helped me to think that I could afford to spend more money, and so within no time, like many Americans, I found myself trading my car in (now paid off due to consolidating all my debt) for a really, really cool car and charging back up the credit cards I had just used my house to pay off. Ultimately, the real lesson came when I could no longer afford my mortgage payments.
That's when everything spiraled out of control. For more information on what happened next, see my other articles. But know this for sure. I was embarrassed, depressed, and life was not fun at all. But I kept my head up and, never a pessimist, I realized that life was better without debt, and having credit was what created debt, so I don't fret the poor, poor credit score anymore.
Am I a bad person because I was not able to pay off my debt? Well, those who think so don't know what I've gone through, how I fought hard to try to pay everything for so long, how I wanted to pay them as soon as my life and job situation had stabilized, but they, my creditors, just wouldn't give me anymore time. So, until you've walked in our shoes, please don't judge us.
