Subscribe to our mailing list

X

Should I Go With a Debt Consolidator Even Though Dave Ramsey Says Not To?

By on May 29, 2018

Question:

Dear Steve,

I’m 13,000 in credit card debt. The rates range from 18-21% apr. I need to look for work by June because my other job will soon be ending. I’m able to meet the minimum payments but the interest fees are so high that I’m afraid I’ll be stuck paying for the rest of my life.

I want to hire a debt consolidator. Dave Ramsey advises against doing this, but aren’t there some companies that are helpful like Trinity.org or Crown Financial?

LAGal

Answer:

Dear LAGal,

This isn’t really anything more than a math problem. I don’t give a crap what Dave Ramsey has to say about what you should not do. Let’s see what the math says.

Let’s look at the overall picture here.

It appears you are not able to save money and may not have an emergency fund to fall back on since you are just limping along.

Your monthly income/expenses are pretty tight if $13,000 is creating a hardship. If it is not creating a hardship then pay more each month and also make sure you are saving at the same time.

A long-term repayment plan may leave you at higher financial risk considering the inability to save and how a big surprise expense can sink the plan. Look at my calculator to determine how much a payment plan can cost you in lost retirement savings.

There are some major approaches to dealing with your debt. I would advise you look at my online calculator to compare each one.

To address the issue you need to decide if your focus is to try and repair the past or repair the future. If you want to do better moving forward, get some savings under you, and be less at risk for default then I would suggest some solution that would either eliminate your debt entirely, like bankruptcy or consider debt settlement if you are not worried about your credit.

READ  WE'RE DEBT FREE!!!! - Video

Here are some past articles that will help you to see this in a new way. Read this, this, and this.

morehelp1
Choice1 Choice2 Choice3 Big Hug!
Get Out of Debt Guy - Twitter , G+ , Facebook
If you have a credit or debt question you'd like to ask just use the online form .

Last step, fill out the information below or call us for Priority Assistance.

What problems are you having with your report?

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.
Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.
Your email is required.
Your phone is required. Your 10 digit phone number is required.
Your state is required.
Your age is required. Your age must be greater than 18. Your age must be less than 100.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s Privacy Policy and Terms of Use and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.

About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

3 Comments

  1. LAGal

    May 29, 2018 at 2:36 pm

    Asked Dave Ramsey question.

    • Michael

      May 29, 2018 at 3:31 pm

      I disagree with this article!!! bankruptcy should not be an option if you can make the payments. Bankruptcy remains as a negative action on your credit for 7_10 years. BK should only be done as a last resort. Neither should you do debt CONsolidation. Why pay someone to negotiate terms when you can do it yourself. Save your money.

Share a Comment / Leave a Reply

%d bloggers like this: