{"id":58812,"date":"2024-08-24T18:03:16","date_gmt":"2024-08-24T22:03:16","guid":{"rendered":"https:\/\/www.iwillteachyoutoberich.com\/?p=58812"},"modified":"2025-05-14T19:08:33","modified_gmt":"2025-05-14T23:08:33","slug":"debt-consolidation","status":"publish","type":"post","link":"https:\/\/www.iwillteachyoutoberich.com\/debt-consolidation\/","title":{"rendered":"Debt Consolidation (what to consider + real life stories included)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"58812\" class=\"elementor elementor-58812\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f70dabc elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"f70dabc\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c5e9304\" data-id=\"c5e9304\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0dad74c elementor-widget elementor-widget-text-editor\" data-id=\"0dad74c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">In this article, we\u2019ll dive into how debt consolidation works, the pros and cons, and real-life examples of when it\u2019s a smart move\u2014and when it\u2019s not. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4eecb98 elementor-widget elementor-widget-heading\" data-id=\"4eecb98\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What is debt consolidation?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-575895a elementor-widget elementor-widget-text-editor\" data-id=\"575895a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Simply put, debt consolidation combines all of the debt you owe into a single payment with a lower monthly interest rate. This typically works by taking out another loan in order to pay off all of your other debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s say you have debt across three credit cards, and you owe the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Credit card A: $2,000 at 10% APR<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Credit card B: $1,000 at 20% APR<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Credit card C: $1,000 at 15% APR<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Each month, you\u2019re contributing $100 to each card for a total of $300 \u2014 however, a portion of each is being eaten by interest:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Credit card A: $16.67<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Credit card B: $16.67<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Credit card C: $12.50<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">So, you\u2019re paying $254.16 towards your debt rather than the full $300.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With debt consolidation, you take out a loan of $4,000 and pay off ALL of the above debt \u2014 and you get a lower interest rate for the loan at 10%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, when you contribute $300 each month, you\u2019ll pay $266.67 towards your debt rather than just $254.16.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In theory, this means you\u2019ll be able to pay off your debt faster.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The interest rate you\u2019re able to get depends on which type of loan you attain:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Secured loan<\/b><span style=\"font-weight: 400;\">: This is a loan where you put up an asset (e.g., car or home) as collateral. If you default on your loan, your creditor will repossess said asset.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Unsecured loan<\/b><span style=\"font-weight: 400;\">: This is a loan that just uses credit. As a result, you might end up with higher interest rates than if you had a secured loan.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you want to get your debt consolidated, you\u2019ll have to go through one of the two routes above \u2014 which we\u2019ll get into later.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before we do that, though, you must know the dangers of consolidating your debt.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-db51549 elementor-widget elementor-widget-heading\" data-id=\"db51549\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The problem with debt consolidation<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-df8be78 elementor-widget elementor-widget-text-editor\" data-id=\"df8be78\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">But before you click on one of those scammy internet ads marketing \u201cDEBT CONSOLIDATION \u2014 BE DEBT FREE IN 3 HOURS,\u201d consider the big drawbacks to debt consolidation:<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eae84b0 elementor-widget elementor-widget-heading\" data-id=\"eae84b0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">1. It could take longer to pay down your debt<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b90e78f elementor-widget elementor-widget-text-editor\" data-id=\"b90e78f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">If there\u2019s anything we\u2019ve learned about human psychology over a decade of studying behavior and personal finances, things like that are easier said than done.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if the average person ends up saving $300 in interest payments because of debt consolidation, do you think they\u2019ll use that extra money towards their debt OR do you think they\u2019ll end up spending it?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most likely, the latter.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Human willpower is limited. It\u2019s the same reason why cutting out lattes or skipping lunch to save money doesn\u2019t work.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A person with 300 \u201cextra dollars\u201d might just blow it on something else.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What happens then is it takes longer to pay down debt. This results in even MORE fees they have to pay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Aside from diminishing willpower, many debt consolidation loan companies offer up longer loan terms than people realize. So while the interest rate is lower, they end up paying more because they didn\u2019t take into account how long they\u2019d have the loan for.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1013e66 elementor-widget elementor-widget-heading\" data-id=\"1013e66\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">2. You could lose your home or car<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4969cc6 elementor-widget elementor-widget-text-editor\" data-id=\"4969cc6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">If you decide to put your car or home down as collateral you stand to lose much more than a few thousand dollars off the life of your loan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A home equity loan is also known as a second mortgage. Taking a second mortgage out on your home means you risk losing your house if you fail to make payments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of course, there are some advantages to going this route. You can deduct the interest payments from your home equity loan from your taxes. Plus, you\u2019ll be able to get a lower interest rate than if you went the unsecured route.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Overall, though, it\u2019s just not worth the risk \u2014 especially when there are better ways to go about it.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-73f0b9c elementor-widget elementor-widget-heading\" data-id=\"73f0b9c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">3. Your credit score will suffer<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-530fcbd elementor-widget elementor-widget-text-editor\" data-id=\"530fcbd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">There are a few things that go into making a <\/span><a href=\"https:\/\/iwillteachyoutoberich.com\/credit-rating-scale\/\"><span style=\"font-weight: 400;\">great credit score<\/span><\/a><span style=\"font-weight: 400;\">. One is your credit history \u2014 or how long you\u2019ve had credit for.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It accounts for 15% of your overall score.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That might seem small but consider this: If you get rid of a bunch of different lines of credit at once, your credit score will take a huge drop. That drop gets bigger with more and more lines of credit you close.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3bb6af4 elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"3bb6af4\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cd5ff34\" data-id=\"cd5ff34\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5acf5bc elementor-widget elementor-widget-heading\" data-id=\"5acf5bc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How do you know if debt consolidation is right for you?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6b1341f elementor-widget elementor-widget-text-editor\" data-id=\"6b1341f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Debt consolidation can be a great way to plan your route out of debt. But that doesn\u2019t mean it\u2019s the perfect solution for everyone.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The benefits of debt consolidation are hard to argue with. You can simplify your debt, save money on interest, only deal with one creditor, and (hopefully) clear your debt faster. But there are pros and cons you need to know about before you make this decision.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It can be the best move for some but worst for others.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-888c82d elementor-widget elementor-widget-heading\" data-id=\"888c82d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Signs debt consolidation is right for you<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cc05d72 elementor-widget elementor-widget-text-editor\" data-id=\"cc05d72\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Here are a few signs that debt consolidation is right for you:<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-00b97f3 elementor-widget elementor-widget-heading\" data-id=\"00b97f3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">You have high-interest debts<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6be47b9 elementor-widget elementor-widget-text-editor\" data-id=\"6be47b9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The number one sign that debt consolidation is a good option for you is if you have several high-interest debts. Why pay interest on several debts when you can pay it on just one?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you know you can secure a lower-interest loan, it makes sense to consolidate your debts.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to <\/span><a href=\"https:\/\/www.experian.com\/blogs\/ask-experian\/whats-a-good-interest-rate-for-a-personal-loan\/\"><span style=\"font-weight: 400;\">Experian<\/span><\/a><span style=\"font-weight: 400;\">, the average personal loan interest rate is 9.41% \u2014 whereas the average interest rate for credit cards is around 16%. So, if you\u2019ve got a ton of credit card debt, it\u2019s worth considering debt consolidation.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fac4e10 elementor-widget elementor-widget-heading\" data-id=\"fac4e10\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">You have good credit<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0d5cbc4 elementor-widget elementor-widget-text-editor\" data-id=\"0d5cbc4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">If you\u2019re already in debt, getting another loan might be tricky unless you have good credit. Most creditors will want a credit score of around 670 (FICO Score).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you have good credit, you\u2019re more likely to get approved for a loan with decent interest rates. Remember, this part is key because you want a loan with lower interest rates than your current debts. A new loan might not have favorable interest rates if your credit score isn&#8217;t the best.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3641467 elementor-widget elementor-widget-heading\" data-id=\"3641467\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">You want a fixed repayment schedule<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-11d193a elementor-widget elementor-widget-text-editor\" data-id=\"11d193a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">With some debts like credit cards, it\u2019s easy to make the minimum payments or even miss a payment (please don\u2019t do this). This makes it harder to clear the debt because some of it relies on willpower.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With a personal loan, you have a fixed payment and loan term to abide by. This makes it much easier to stay on track and clear your debts. It also means there are no fluctuations in your monthly debt payments like with a credit card, so it\u2019s easier to budget.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-06ac43c elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"06ac43c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3779f24\" data-id=\"3779f24\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-35cff2a elementor-widget elementor-widget-heading\" data-id=\"35cff2a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Signs debt consolidation is NOT right for you<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-53aa44d elementor-widget elementor-widget-text-editor\" data-id=\"53aa44d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Meanwhile, here are the signs that debt <\/span><span style=\"font-weight: 400;\">consolidation<\/span><span style=\"font-weight: 400;\"> is probably not for you:<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-247738b elementor-widget elementor-widget-heading\" data-id=\"247738b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">You have a poor credit score <\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b5e9c0b elementor-widget elementor-widget-text-editor\" data-id=\"b5e9c0b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Having a poor credit score is one reason many people want to get out of debt as quickly as possible.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, debt consolidation relies on your ability to take out a new loan and get one without crazy high interest rates.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the only loans you can take out mean you\u2019ll be paying MORE in interest rates, then it\u2019s not worth it. In this case, the only benefit would be to simplify your loans.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But what you really need is to save on interest so you can clear the debts faster. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e7156c1 elementor-widget elementor-widget-heading\" data-id=\"e7156c1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">You\u2019re on the verge of bankruptcy<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-76a8ae7 elementor-widget elementor-widget-text-editor\" data-id=\"76a8ae7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">If things have taken a downward turn and creditors are threatening to sue, then a debt consolidation loan may not even be accessible to you. Bankruptcy is a scary thought, but if this is your reality, you are unlikely to qualify for a debt consolidation loan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If this is your current situation, you would be better off looking into debt settlement to try and reduce your debt amount first. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6aea632 elementor-widget elementor-widget-heading\" data-id=\"6aea632\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">You can\u2019t afford the monthly repayments<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-99b009b elementor-widget elementor-widget-text-editor\" data-id=\"99b009b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Taking on another debt is tricky if you\u2019re already in debt. While you can use this one to clear your other debts, you need to make sure you can cover the monthly repayments.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The monthly repayments will be higher as the debt amount will be higher (to cover all your other debts). Before taking on new debt, make sure you can comfortably fit it into your budget.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After all, missing repayments can set you back even further.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-99589af elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"99589af\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-19b6e1d\" data-id=\"19b6e1d\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7281795 elementor-widget elementor-widget-heading\" data-id=\"7281795\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What happens when debt gets in the way<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-10e998e elementor-widget elementor-widget-text-editor\" data-id=\"10e998e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">It&#8217;s important to make sure your debt consolidation plan actually helps you pay down your debt. When you ignore your debt or choose the wrong strategy, things can spiral out of control.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Look at this real-life example to see what happens when debt payoff goes wrong.<\/span><\/p>\n<p><a href=\"https:\/\/www.iwillteachyoutoberich.com\/89-dj-adam\/\"><span style=\"font-weight: 400;\">Meet DJ and Adam<\/span><\/a><span style=\"font-weight: 400;\">, a couple in their 30s navigating the complexities of a serious relationship. There\u2019s one big issue between them, and it\u2019s so severe that Adam doesn\u2019t even want to marry DJ because of it.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5703d72 elementor-widget elementor-widget-video\" data-id=\"5703d72\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/www.youtube.com\\\/watch?v=QkAMDbP1sKU&amp;t=1s&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e1feaff elementor-widget elementor-widget-text-editor\" data-id=\"e1feaff\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">[00:09:14] DJ: Adam, is it important to you that I\u2019m debt free?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:18] Adam: You don\u2019t have to be debt free. I\u2019m not debt free. I have a lot of debts. But it\u2019s important that you can manage your debts in a way that won\u2019t drag us both down one day.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:29] Ramit: What did you just take away from that answer?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:31] DJ: That he sees me being in debt as a risk?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:34] Ramit: Mm-hmm. Okay. So what was the question you asked him?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:37] DJ: If me being debt free is important to him.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:40] Ramit: Uh-huh. And what do you think that he said just now?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:43] DJ: He said he doesn\u2019t care if I\u2019m debt free, as long as it doesn\u2019t both drag us both down eventually.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:48] Ramit: Adam, it\u2019s interesting she asked a pretty direct question, and your answer was quite indirect. Did you notice that?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:55] Adam: Yeah, a little bit. She knows my answers because I\u2019ve been through this before. I am divorced and finances is one of the major roles that screwed it up the first time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We were both working jobs that we didn\u2019t like, so spending was our way to just feel better. And I don\u2019t know if that what DJ goes through day in, day out. But for me, I was working a job many people would\u2019ve dreamed about, and I was just so miserable. Spending was what got me by.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:26] Ramit: Mm-hmm.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:28] Adam: And then a wall hit where the credit cards were so high. It led to disdain for each other and fighting and eventually splitting up.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:37] Ramit: think that was directly responsible because of money?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:40] Adam: Money was absolutely one of the top reasons.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dc4a6c5 elementor-widget elementor-widget-text-editor\" data-id=\"dc4a6c5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">DJ insists that she\u2019s just living in the moment, but I\u2019m not convinced. Something deeper drives her spending habits and needs to be uncovered before she can make any real progress.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5a61c4d elementor-widget elementor-widget-text-editor\" data-id=\"5a61c4d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">[00:35:02] Ramit: Are you good with money?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:04] DJ: No.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:05] Ramit: Why?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:07] DJ: Because I don\u2019t take into account the things I need to save for before I spent.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:13] Ramit: Okay. Why?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:14] DJ: Because I live in the right now. And also because I didn\u2019t make very much money for a long time, so it was impossible to even do anything.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:31] Ramit: That\u2019s not true.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:32] DJ: So I just threw it all out the window.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:35] Ramit: I don\u2019t think that\u2019s true, and I think that\u2019s a story you tell yourself.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:39] DJ: Okay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:41] Ramit: I think it\u2019s really important to really dig into that. Were there other teachers around you making similar incomes?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:49] DJ: Yeah. And one just paid off all her debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:52] Ramit: Wow, that\u2019s shocking.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:53] DJ: By getting a new job.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:55] Ramit: Mm-hmm. Like you.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a07aecf elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"a07aecf\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a56456f\" data-id=\"a56456f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-94ec823 elementor-widget elementor-widget-text-editor\" data-id=\"94ec823\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">DJ\u2019s logic behind her credit card use was baffling. I discovered she really did have a different way of viewing her credit card debt, and having this view makes it hard even to approach something like consolidation.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-74d4961 elementor-widget elementor-widget-text-editor\" data-id=\"74d4961\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">[00:55:24] Ramit: All right, let\u2019s look at the debt payoff. What\u2019s your interest rate?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:29] DJ: Adam, did we write this down the other night?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:31] Adam: I didn\u2019t save it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:36] Ramit: We\u2019ll just say 26%, because I bet it is. And how much currently pay every month?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:42] DJ: It varies. It really does vary. I pay\u2013<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:48] Ramit: Why?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:49] DJ: I try to put as much as I can when I can.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:52] Ramit: Okay. How much?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:54] DJ: I usually put at least 2,000 a month towards it, but then I charge it back up. That\u2019s the problem. I will pay and then I\u2019ll use my credit card so that I get points.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:07] Ramit: What the fuck? Why? What the fuck? What are you talking about? Why are you using it for points?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:14] DJ: I don\u2019t use\u2013 because I don\u2019t want to use my checking account. Because you don\u2019t get any rewards to use your checking account when you pay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:18] Ramit: Are you kidding me right now?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:20] DJ: What?\u00a0 You\u2019re supposed to do that, right?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:23] Ramit: Who told you that? Who told you? Who told you that you\u2019re supposed to go into more debt to earn one cent in rewards?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:34] DJ: Well, you just don\u2019t get any rewards when you spend money out of your checking account.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:38] Ramit: Who cares? You are in debt. You know why you actually care? Do you know why I\u2019m getting so mad and you\u2019re not? Do you have any idea why this is happening right now?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:48] DJ: Because the math doesn\u2019t equal out.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:51] Ramit: No. I\u2019m getting mad because you don\u2019t even see the consequences of what you\u2019re doing. Because you have no consequences. You are staying in debt, not just because of the interest, which is already crazy high, but because you keep spending on it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And when I ask you why, you go, so I can get points. It makes no sense. These points are worthless for somebody like you in credit card debt. The last thing you should be thinking about is points.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:57:27] DJ: I needed to hear that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:57:31] Ramit: Has anyone ever told you that?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:57:34] DJ: No. I thought that if you were good with money, that you used credit cards to your advantage to earn points so that your money was making you money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:57:51] Ramit: Your money is not making you money. All that money you\u2019re putting in your credit card on the backend is just costing you more than those points. You\u2019re basically spending a dollar to pay a 1.50 and then you get one cent back. It makes no sense.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:58:14] DJ: Yeah. When you put it like that, it doesn\u2019t make sense at all.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:58:17] Ramit: Okay, so we got to stop that. This is why people who are in credit card debt, they use their debit card. It\u2019s a huge behavioral peculiarity. But it actually makes sense because those people go, shit, I do not want to put more on this credit. I\u2019m paying it off. I don\u2019t want to add more to it, so I\u2019m going to pay for my dinner with a debit card.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0b06d19 elementor-widget elementor-widget-text-editor\" data-id=\"0b06d19\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Finally, the numbers reveal a shocking truth about how quickly DJ could turn her financial life around\u2014if she sticks to the plan. In this situation, consolidation might be a good idea if it makes payments easier and eliminates the temptation to use a credit card after making a payment.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b64ae8d elementor-widget elementor-widget-text-editor\" data-id=\"b64ae8d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">[00:59:00] Ramit: All right. So currently, if you\u2019re paying off $2,000 a month, that\u2019s why now the math actually adds up. If you\u2019re paying 2,000, I\u2019m like, this thing\u2019s going to be paid off right away. What\u2019s the problem? Then I find out you\u2019re spending all this money for miles. I go, oh my God. All right, so how much, by the way, were you spending on that credit card?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:23] DJ: I just use it for everything.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:26] Ramit: Like?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:26] DJ: One with my lowest interest, I just use for everything. Gas, groceries, everything.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:31] Ramit: Okay. Don\u2019t do that anymore.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:33] DJ: Okay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:34] Ramit: So you can only buy how much you have in your checking account.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:38] DJ: Okay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:39] Ramit: All right, so if you pay, can you continue paying $2,000 a month towards your credit card?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:46] DJ: Yes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:47] Ramit: How long will it take you to pay off?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:51] DJ: A year probably.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:54] Ramit: Let\u2019s get the exact number because I want you to see it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:58] DJ: Okay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:58] Ramit: Oh, you\u2019re not going to be able to do this on a calculator of your own.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:01] DJ: Why not?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:03] Ramit: Unless you can do the calculations with the interest rate.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:07] DJ: Oh.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:08] Ramit: I\u2019ll just tell you. It\u2019s nine months.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:11] DJ: That\u2019s it?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:14] Ramit: Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:15] DJ: Okay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:17] Ramit: What do you think about that?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:19] DJ: That\u2019s awesome.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:21] Ramit: It\u2019s easy. Is that surprising to you?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:27] DJ: Yeah, that\u2019s shocking.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:29] Ramit: What\u2019d you think it would be?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:31] DJ: At least two years.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7ae23a2 elementor-widget elementor-widget-text-editor\" data-id=\"7ae23a2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">As you can see from DJ and Adam\u2019s story, ignoring financial issues or delaying crucial decisions can lead to difficult situations and strain your relationships. If you&#8217;re considering debt consolidation, it&#8217;s best to start sooner rather than later.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d051a79 elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"d051a79\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ac6d040\" data-id=\"ac6d040\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5b1501e elementor-widget elementor-widget-heading\" data-id=\"5b1501e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How to consolidate debt \u2014 and get rid of it completely<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-07657e7 elementor-widget elementor-widget-text-editor\" data-id=\"07657e7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">If you\u2019re STILL keen on consolidating your debt, here\u2019s how you can get started in three simple steps: <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2f74943 elementor-widget elementor-widget-heading\" data-id=\"2f74943\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Step 1: Find a non-profit debt consolidation firm<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-04732ed elementor-widget elementor-widget-text-editor\" data-id=\"04732ed\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Non-profit debt consolidation firms are 501(c)(3) organizations that help provide consolidation services and credit counseling and will even negotiate with your creditors for you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best part: They do so with little to no costs to you since they\u2019re funded by third-party sources such as donations and grants.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unfortunately, even scammers and bad consolidation services have non-profit status. So, you\u2019ll have to do your research to find a reputable one.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Two good signs a non-profit debt consolidation firm is the real deal:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fees<\/b><span style=\"font-weight: 400;\">: A reputable non-profit will likely have monthly maintenance fees. Luckily, they\u2019re relatively low cost \u2014 and if you\u2019re in really dire straits, some non-profits will waive the fees entirely for you.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Non-profit status<\/b><span style=\"font-weight: 400;\">: This might seem like a no-brainer, but it still needs to be said: Ask them to verify their non-profit status. Too many scam companies pretend they\u2019re non-profits to lure people in. Don\u2019t be one of those people.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Make a list of 5 to 10 non-profit debt consolidation firms. Spend the next week calling each of them and getting a consultation on your situation and what they can do for you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A good non-profit will spend about an hour on your consultation. Beware of any organization wanting to take your money and put you into a plan immediately. They are NOT looking out for your best interests.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7818442 elementor-widget elementor-widget-heading\" data-id=\"7818442\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-heading-title elementor-size-xl\"><b>The world wants you to be vanilla...<\/b><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-82bd585 elementor-widget elementor-widget-text-editor\" data-id=\"82bd585\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>\u2026but you don\u2019t have to take the same path as everyone else. How would it look if you designed a Rich Life on your own terms? Take our quiz and find out: <!-- notionvc: 87de414a-ba5d-4319-990c-670518ea3143 --><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a1f3522 elementor-widget elementor-widget-button\" data-id=\"a1f3522\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.iwillteachyoutoberich.com\/rich-life-quiz\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Take the Quiz<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9838001 elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"9838001\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-739fba9\" data-id=\"739fba9\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7c588fb elementor-widget elementor-widget-heading\" data-id=\"7c588fb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Step 2: Eliminate temptation<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c35e92c elementor-widget elementor-widget-text-editor\" data-id=\"c35e92c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Luckily, a non-profit debt consolidation firm will take care of a lot of legwork for you. That means they\u2019ll call your creditors, negotiate down your debt and interest rate, and work with them to consolidate your debt into one manageable monthly payment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unluckily, that\u2019s the easy part. The hard part means paying down your debt \u2014 and that\u2019s up to you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To do that, you need first to get rid of the temptation of using your credit cards until you\u2019re debt-free. If you ever expect to pay down your debt, you can\u2019t add more.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s my favorite tip: Plunge your cards into a bowl of water and shove it all into your freezer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Seriously. Remember what we said about human willpower? It\u2019s very weak \u2014 so weak that a solution like freezing your cards is necessary sometimes to delete temptation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you freeze your credit, you\u2019ll have to chip away at a massive block of ice to get it back, giving you time to think about whether or not you want to make the purchase you were going to make.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can also give them away to a loved one to keep until you\u2019re out of debt.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e98cbe3 elementor-widget elementor-widget-heading\" data-id=\"e98cbe3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Step 3: Confront your debt<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a0c174d elementor-widget elementor-widget-text-editor\" data-id=\"a0c174d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">It\u2019s good to finally confront your debt. That\u2019s the first step to getting out of it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While it may be tough to climb out of debt, the sooner you plan to do so, the better. You\u2019ll be able to repair your credit score, work on boosting your savings, save on interest, and finally get some sleep at night. Debt can weigh heavily on the mind, after all.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The good thing is, you don\u2019t have to do this all alone. There\u2019s help at hand. You can contact a non-profit debt consolidation firm for help. Take advantage of their credit counseling services to help steer you through unmanageable debt. Do your research and find a non-profit so you can avoid the scammers out there.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s easy to feel bad for yourself and avoid confronting your debt. It\u2019s harder to actually take action.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since you\u2019re here, that means that you\u2019re willing to work to dig yourself out of your financial hole, which is amazing!<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6e84f60 elementor-widget elementor-widget-heading\" data-id=\"6e84f60\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What is the difference between debt consolidation and debt settlement?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-248ccee elementor-widget elementor-widget-text-editor\" data-id=\"248ccee\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Another term you\u2019ll likely come across in your quest to clear your debt is debt settlement. But what is it?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Both debt settlement and debt consolidation are used to handle personal debt, but they work in very different ways.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debt settlement is used to reduce the total amount of debt owed. On the other hand, debt consolidation is about reducing the number of creditors you owe.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With debt consolidation, you combine multiple debts into one. Debt settlement is when you ask one or more creditors to accept less than you owe.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the creditor agrees, you reach a settlement agreement in a lump sum or installments.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f769cb2 elementor-widget elementor-widget-heading\" data-id=\"f769cb2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Which option is better for you? <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-46af8d7 elementor-widget elementor-widget-text-editor\" data-id=\"46af8d7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">This depends on your circumstances and what the creditor will agree to. If you want to make your monthly repayments more manageable and reduce the interest you pay, then debt consolidation is the way to go.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re already behind on payments and struggling to meet them, debt settlement might be a better option.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this case, if you\u2019re already behind on payments, you might struggle to get a debt consolidation loan because of the impact on your credit score. So, debt settlement is definitely something to try to reduce the burden.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debt settlement is the next logical step if you\u2019re out of options, have poor credit, and want to avoid declaring bankruptcy if possible.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It may mean taking a hit on your credit score, but you might have to just accept that. Once the debts are clear, you can get to work on repairing that damage.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2900a0c elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"2900a0c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-fb05e52\" data-id=\"fb05e52\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6f255c6 elementor-widget elementor-widget-heading\" data-id=\"6f255c6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How does debt settlement work?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1557e92 elementor-widget elementor-widget-text-editor\" data-id=\"1557e92\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Debt settlement is tricky and requires you to whip out your negotiation skills. There\u2019s no guarantee the creditor will agree, but there\u2019s no harm in asking.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The process is pretty simple. You can ask your creditor if they would negotiate a settlement. Do this over the phone or in writing to keep a record of the conversation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A creditor can do one of three things:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accept it<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reject it<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Make a counteroffer<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">With the counteroffer, you will need to consider if the amount they want is affordable in your budget. Make sure you\u2019re agreeing to something realistic and fair.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you agree on a settlement amount, all that\u2019s left is to arrange the payments. This can be a lump sum or through installment payments, whichever you agree to.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After you\u2019ve made the payments, the remaining balance hanging over your head will be a nice round zero.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If negotiating debt settlement on your sounds like a nightmare, don\u2019t worry. There is help at hand. You can hire a debt settlement company to negotiate on your behalf. However, this does involve paying them a fee, and again, you have to do your research to avoid hiring a scammer.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-699c652 elementor-widget elementor-widget-heading\" data-id=\"699c652\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Pros and cons of debt settlement<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7683c83 elementor-widget elementor-widget-text-editor\" data-id=\"7683c83\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">In this section, I\u2019ll outline the pros and cons of debt settlement<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fee93f6 elementor-widget elementor-widget-heading\" data-id=\"fee93f6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Pros<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fae727c elementor-widget elementor-widget-text-editor\" data-id=\"fae727c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Some of the benefits of debt settlement include:<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-908ff55 elementor-widget elementor-widget-heading\" data-id=\"908ff55\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">You reduce your debt amount<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-67623f3 elementor-widget elementor-widget-text-editor\" data-id=\"67623f3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The biggest pro to debt settlement is that it reduces your debt amount. Many people don\u2019t know that they can ask their creditors for this, so they continue struggling.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But if you\u2019re struggling, it can\u2019t hurt to ask. If a creditor agrees, you could cut hundreds of dollars from your debt and all the interest on top of that.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ed870ce elementor-widget elementor-widget-heading\" data-id=\"ed870ce\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">You can clear your debt faster<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-82d0767 elementor-widget elementor-widget-text-editor\" data-id=\"82d0767\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">With a smaller debt amount to pay off, you can pay it off faster. Whether you agree on a payment plan or a lump sum, you can say goodbye to your debts much sooner.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This means your money will be freed up faster to put into savings accounts or whatever else you want to spend it on. Once the debt is clearer, you can also get to work repairing any damage to your credit score. The sooner, the better. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-031324b elementor-widget elementor-widget-heading\" data-id=\"031324b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">It could help you avoid bankruptcy<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5048744 elementor-widget elementor-widget-text-editor\" data-id=\"5048744\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">If bankruptcy is on the horizon, debt settlement should absolutely be a consideration. The last thing you want is a bankruptcy on your record. You can say goodbye to being able to take out credit for a LONG time if you reach this point.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2d174be elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"2d174be\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c3c3f9d\" data-id=\"c3c3f9d\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-34c7d46 elementor-widget elementor-widget-heading\" data-id=\"34c7d46\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Cons<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-26170bc elementor-widget elementor-widget-text-editor\" data-id=\"26170bc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">While the cons for debt settlement are:\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-45e8d99 elementor-widget elementor-widget-heading\" data-id=\"45e8d99\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Your credit score will take a hit<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d37920f elementor-widget elementor-widget-text-editor\" data-id=\"d37920f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Naturally, debt settlement does not reflect well on your ability to repay debts. If you have debt settlement in your credit history, it signals to future creditors that you are riskier to lend to. This could result in sky-high interest rates or outright credit rejection.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, if your credit score is already low and your debts are just making it worse, you have nothing to lose. Yes, you\u2019ll take a hit, but you\u2019ll also get out of debt sooner if your creditors agree to debt settlement.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a37a3ab elementor-widget elementor-widget-heading\" data-id=\"a37a3ab\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">You might struggle to get credit again\u2026 especially with those creditors<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9447a14 elementor-widget elementor-widget-text-editor\" data-id=\"9447a14\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">A lower-than-ideal credit score does affect your ability to take out credit in the future. However, if you\u2019ve been in a tricky situation with credit, it\u2019s probably worth avoiding new loans and finance for a little while anyway.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The creditors who agree to debt settlement will likely avoid lending to you again because they will be worried about losing money. This could limit your options in the future. But if it\u2019s your only option, you might just have to just bite the bullet.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8d48d8c elementor-widget elementor-widget-heading\" data-id=\"8d48d8c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">There is no guarantee creditors will agree<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b2bd018 elementor-widget elementor-widget-text-editor\" data-id=\"b2bd018\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Unfortunately, you might be out of luck if you\u2019re relying on creditors to throw you a lifeline here. In an ideal scenario, they\u2019ll be forgiving and offer you a way to climb out of debt to benefit everyone.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But there\u2019s no guarantee they\u2019ll do this. They could outright reject your request or be inflexible with their counteroffer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There\u2019s little you can do if this is the case. You can try another of your creditors if you have several debts to see if any of them will agree.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7e209f1 elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"7e209f1\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a56640a\" data-id=\"a56640a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f67c911 elementor-widget elementor-widget-heading\" data-id=\"f67c911\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Avoiding debt in the future<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-72786fe elementor-widget elementor-widget-text-editor\" data-id=\"72786fe\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">After you\u2019ve decided on a method to reduce your debt \u2013 don\u2019t stop. Ridding yourself of debt is just one key part of building strong personal finances. The other part of the puzzle is to manage your spending so you don\u2019t end up in the same position as before.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The last thing you want to do is put all your hard work into clearing the debt, only to succumb to temptation or poor money management, which will put you right back where you started.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s why we want to give you something that can help you take your personal finances to the next level:\u00a0 The Ultimate Guide to Personal Finance. In it, you\u2019ll learn how to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Master your 401k<\/b><span style=\"font-weight: 400;\">: Take advantage of the free money offered to you by your company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Manage Roth IRAs<\/b><span style=\"font-weight: 400;\">: Start saving for retirement in a worthwhile long-term investment account.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Spend the money you have \u2014 guilt-free<\/b><span style=\"font-weight: 400;\">: By leveraging the systems in this e-book, you\u2019ll learn exactly how you\u2019ll be able to save money to spend without guilt.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Enter your info below and get on your way to living a Rich Life today.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f1c8abc elementor-widget elementor-widget-qi_addons_for_elementor_wp_forms\" data-id=\"f1c8abc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"qi_addons_for_elementor_wp_forms.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"qodef-shortcode qodef-m qodef-qi-wp-forms\">\n\t<div class=\"wpforms-container wpforms-container-full\" id=\"wpforms-53563\"><form id=\"wpforms-form-53563\" class=\"wpforms-validate wpforms-form\" data-formid=\"53563\" method=\"post\" enctype=\"multipart\/form-data\" action=\"\/wp-json\/wp\/v2\/posts\/58812\" data-token=\"616c9873956056bb406a67057db9d712\" data-token-time=\"1779992473\"><noscript class=\"wpforms-error-noscript\">Please enable JavaScript in your browser to complete this form.<\/noscript><div class=\"wpforms-field-container\"><div id=\"wpforms-53563-field_18-container\" class=\"wpforms-field wpforms-field-hidden\" data-field-type=\"hidden\" data-field-id=\"18\"><input type=\"hidden\" id=\"wpforms-53563-field_18\" 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value=\"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/posts\/58812\"><\/div><div id=\"wpforms-53563-field_13-container\" class=\"wpforms-field wpforms-field-hidden\" data-field-type=\"hidden\" data-field-id=\"13\"><input type=\"hidden\" id=\"wpforms-53563-field_13\" name=\"wpforms[fields][13]\" value=\"53563\"><\/div><div id=\"wpforms-53563-field_15-container\" class=\"wpforms-field wpforms-field-hidden\" data-field-type=\"hidden\" data-field-id=\"15\"><input type=\"hidden\" id=\"wpforms-53563-field_15\" name=\"wpforms[fields][15]\" value=\" \/ UG to Personal Finance\"><\/div><div id=\"wpforms-53563-field_14-container\" class=\"wpforms-field wpforms-field-hidden\" data-field-type=\"hidden\" data-field-id=\"14\"><input type=\"hidden\" id=\"wpforms-53563-field_14\" name=\"wpforms[fields][14]\" value=\"{entry_page}\"><\/div><div id=\"wpforms-53563-field_20-container\" class=\"wpforms-field wpforms-field-html\" data-field-type=\"html\" data-field-id=\"20\"><div id=\"wpforms-53563-field_20\"><strong>If you like this post, you'd love my Ultimate Guide to Personal Finance<\/strong><\/div><\/div><div id=\"wpforms-53563-field_21-container\" class=\"wpforms-field wpforms-field-html\" data-field-type=\"html\" data-field-id=\"21\"><div id=\"wpforms-53563-field_21\">It\u2019s one of the best things I\u2019ve published (and 100% free), just tell me where to send it:<\/div><\/div><div id=\"wpforms-53563-field_10-container\" class=\"wpforms-field wpforms-field-name\" data-field-type=\"name\" data-field-id=\"10\"><label class=\"wpforms-field-label wpforms-label-hide\" for=\"wpforms-53563-field_10\">First Name <span class=\"wpforms-required-label\">*<\/span><\/label><input type=\"text\" id=\"wpforms-53563-field_10\" class=\"wpforms-field-medium wpforms-field-required\" name=\"wpforms[fields][10]\" placeholder=\"First Name\" required><\/div><div id=\"wpforms-53563-field_11-container\" class=\"wpforms-field wpforms-field-email\" data-field-type=\"email\" data-field-id=\"11\"><label class=\"wpforms-field-label wpforms-label-hide\" for=\"wpforms-53563-field_11\">Email <span class=\"wpforms-required-label\">*<\/span><\/label><input type=\"email\" id=\"wpforms-53563-field_11\" class=\"wpforms-field-medium wpforms-field-required\" data-rule-restricted-email=\"1\" name=\"wpforms[fields][11]\" placeholder=\"Email Address\" spellcheck=\"false\" required><\/div><div id=\"wpforms-53563-field_19-container\" class=\"wpforms-field wpforms-field-html\" data-field-type=\"html\" data-field-id=\"19\"><div id=\"wpforms-53563-field_19\">Along with the guide, I'll also send you my Insiders newsletter where I share other exclusive content that's not on the blog.<\/div><\/div><\/div><!-- .wpforms-field-container --><div class=\"wpforms-submit-container\" ><input type=\"hidden\" name=\"wpforms[id]\" value=\"53563\"><input type=\"hidden\" name=\"page_title\" value=\"\"><input type=\"hidden\" name=\"page_url\" value=\"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/posts\/58812\"><input type=\"hidden\" name=\"url_referer\" value=\"http:\/\/www.iwillteachyoutoberich.com\/debt-consolidation\/\"><button type=\"submit\" name=\"wpforms[submit]\" id=\"wpforms-submit-53563\" class=\"wpforms-submit\" data-alt-text=\"Sending...\" data-submit-text=\"Send me the guide!\" aria-live=\"assertive\" value=\"wpforms-submit\">Send me the guide!<\/button><\/div><\/form><\/div>  <!-- .wpforms-container --><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>In this article, we\u2019ll dive into how debt consolidation works, the pros and cons, and real-life examples of when it\u2019s a smart move\u2014and when it\u2019s not. What is debt consolidation? Simply put, debt consolidation combines all of the debt you owe into a single payment with a lower monthly interest rate. This typically works by [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":69649,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"_lmt_disableupdate":"no","_lmt_disable":"","_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[160],"class_list":["post-58812","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"acf":[],"aioseo_notices":[],"modified_by":"ljknoll95@gmail.com","_links":{"self":[{"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/posts\/58812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/comments?post=58812"}],"version-history":[{"count":0,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/posts\/58812\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/media\/69649"}],"wp:attachment":[{"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/media?parent=58812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/categories?post=58812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}