Most of the time, after someone consolidates their debt, the debt grows back. They don’t have a game plan to pay cash and spend less.
In other words, they haven’t established good money habits for staying out of debt and building wealth.
Two words for you: , although often the terms are used interchangeably.
We’ve already covered consolidation: It’s a type of loan that rolls several unsecured debts into one single bill. Debt settlement means you hire a company to negotiate a lump-sum payment with your creditors for less than what you owe.
If that’s not bad enough, you’ll end up shelling out $46,080 to pay off the new loan versus $40,392 for the original loans—even with the lower interest rate of 9%.