Question by Need2Kno: Where can I get a Debt Consolidation Loan to pay off Credit Cards w/o refinancing Mortgage?
Answer by aecruiser
Debt consolidation is rarely the right thing to do. The reason why is that they lump together all you debts, your low interest and high interest and then extend the time frame of you payments in order to reduce the payments. It also dings up your credit score. You need to get intense and take care of this yourself!
There are two different approaches to becoming debt free. The first is to list all debts from the highest interest rate to the lowest, attack the highest interest rate and pay minimums on all the rest. The other way is to list all your debts from smallest to largest and attack the smallest first and make minimum payments only on all the others. The first may mathematically seem better but from my experience, the second approach actually works better from a behavioral standpoint. You get constant reinforcement as you knock out debts early and often. Either way, you need to cut your lifestyle and get angry. Have a garage sale and get a second job. Get intense and soon you will be free!
What do you think? Answer below!