There is a basic rule of thumb for consolidating debt, and it's a rule that most people aren't willing to follow.

All too often those in debt want to ignore the real problem at hand and invest in a debt consolidation loan or something like it, hoping that it will solve all of their problems without them having to lift a finger to address the real issue behind the debt.

However, the reality is that debt consolidation is merely one method for reallocating your finances. It's NOT a quick fix!

It's never the overall solution! Consolidating debt can indeed be accomplished, with great results, but it will require you to rethink your spending habits and likely make drastic changes to your budget and lifestyle, until you able to free yourself of the debt completely - and living debt free should be the goal.

Essentially, you have to ask yourself how you got into debt in the first place and take the steps to prevent yourself from getting into it again. This means that when consolidating debt, you must close all of your old accounts and not ever use them again!

Yes you CAN do this - it doesn't mean the end of the world, it just means the end of living in debt up to your eyeballs.

Addressing your spending and savings habits are indeed a requirement if you want to say goodbye to your debt. Otherwise, your plan for consolidating debt is just another short-term bandaid on your debt problem.

Avoid buying on credit like the plague - it only traps you. You might get some instant gratification by purchasing that expensive car you've been eying for months, but ultimately if you're stuck in debt as a result, it won't be worth it down the road.

Spend only the money you have in hand - not money you wish you had, or hope to have in he future. This advice doesn't sound so radical, does it? And yet the average American is thousands and thousands of dollars in debt and their financial future is thus out of their control and their self-esteem is suffering.

Instead of spending frivolously, why not save your money and invest it into your future? Instead of buying a product with a loan that costs more than the product itself, why not save your pennies until you can afford the product upfront?

Don't spend every last drop of your income every week - instead, put some of it aside for later; let it multiply in an investment account. These habits of financial planning and budgeting take time and effort to master but once you see the rewards - both physical and emotional - it will be hard to sign up for another credit card.

In essence, exercise restraint. Your self-control today will literally pay off tomorrow. If you want freedom over your life, you need freedom over your money. And you will never achieve that if you are constantly indebted to banks, credit card companies, cash stores and other lenders.

So as you're consolidating debt, remember that it will take a lot more than just that to improve your finances and ultimately your life.

While it might be a real adjustment to change the way you spend and save money today, it will quickly become the only reasonable way to live your life.

» Consumer Credit Debt Consolidation - Consolidate In A New Way
More Americans are pursuing consumer credit debt consolidation loans as a way of fixing their debt problems. The problem is that unless additional steps are taken, this may be the answer.

» Consumer Debt Consolidation - Consolidate Using 2nd Mortgage
As you pursue consumer debt consolidation options, a home equity loan or line of credit with a fixed option may be a good choice. However, consolidating debt is only part of the solution.

» Credit Cards Debt Consolidation - Stop The Juggling Act
Credit cards debt consolidation options are plentiful. This is why you need to do your homework and be cautious in reviewing the various product offers.

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