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I am totally new to the debt consolidation world and need help. I received a mailing from Discover the other day offering me a consolidation loan and so I've done a little research. I have a student loan, and three credit cards totaling $13,496.65. As of right now the student loan has an apr of 3% and one CC is at 8.99% the other two are at 0% because of balance transfers. I know that I have have a spending problem so every time I get my cards paid down I spend more money. As of this month I have nothing left in my bank account it's all going to pay bills - I have never been late with a payment. For two years I was working a second part-time job - therefore I had more money so I was able to spend more money. But, when I left that job I kept spending the money I didn't have. I need to know if debt consolidation is the way to go for me and my situation. Is there another way for me to learn better spending habits?

Dave Ramsey's total money makeover kit will help you learn better money management skills. I have heard a ton of good thinks about it helping people correct their spending bad habits.

Sub: #1 posted on Sun, 07/27/2008 - 09:59

mobile0311 mobile0311
(Posts: 1817 | Credits: 104.57)

I wouldn't put the student loans on a credit card because the student loan will probably keep the lower rate of interest. If you happen to miss payments etc. on the Discover credit card you probablly wouldn't keep that low interest rate.

Do you beleve tjat debt consolidation would really help you? Yes you would have one payment, that would maybe be lower than right now. But, with your debts consolidated are you going to be able to be strong enough to not use the other (now zero balance credit cards)? If you have a real issue with spending money you don't have, then it would probably be too big of a temptation.

Do you possibly need some type of counseling for your spending issues? Is your spending a cover-up for something else? How do you feel when you overspend? Do you have a feeling of elation? Guilt? I am not trying to be nosy, but these are questions a trained counselor/therapist would start off with.

If I were you, I would think about things, do some research and even look into some type of class on money management. Don't let the problem get ahold of you. Good luck.

Sub: #2 posted on Sun, 07/27/2008 - 10:08

Lorri Lorri
(Posts: 1721 | Credits: 224.67)

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