Consolidating credit card debt for students
Dave says, "Personal finance is 80% behavior and only 20% head knowledge." Even though your choices landed you in a pile of debt, you have the power to work your way out! The solution isn’t a quick fix, and it won’t come in the form of a better interest rate, another loan, or debt settlement. The solution requires you to roll up your sleeves, make a plan for your money, and take action!
If you are carrying credit card debt month to month, a balance transfer could therefore mean substantial savings.If that’s not bad enough, you’ll end up shelling out ,080 to pay off the new loan versus ,392 for the original loans—even with the lower interest rate of 9%.This means your "lower payment" has cost ,688 more.In fact, you end up paying more and staying in debt longer because of so-called consolidation.
Get the facts before you consolidate or work with a settlement company.
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.