In God We Trust

Teaching You How to Get OUT of Debt and Live Debt-Free


At some point in assessing your debt situation, it becomes clear that you are under water, upside down — in trouble. What to do, what to do?

If you had been living by Spending Less than You Earn, you most likely wouldn’t be here, But, here you are with no idea where to go next.

Your debt comes from several decisions or circumstances.

  1. You bought a car
  2. You bought a house
  3. You bought lots of “stuff” using credit cards
  4. You lost your job
  5. You got sick
  6. You went to school

One of the temptations is to “consolidate” your debt to make it more manageable. This means to gather your outstanding debts and roll them into one larger loan, and make the payments lower.


Most Financial Planners will recommend that if you have any available equity in your home, that you take an equity loan and pay off your credit cards and car loans. They tell you that you’ll be paying tax-deductible interest at a lower rate than the credit card rates.

This is true, But, it also puts your home as collateral for that loan. This puts your home in jeopardy of foreclosure for that hamburger you ate 3 years ago and have still been paying for with your minimum payments.

Replacing many debts with one big one is not Avoiding Debt.

Experience shows us that unless you conquer your Spending Problem first, you’ll just balloon debt up to un-manageable levels and THEN what will you do?

And if you don’t have a house?

The only time Consolidation makes much sense is your Student loans. When your loans begin to come due, chances are good that your dream career hasn’t taken off, yet, and the payments are too steep for your income. The government has made it easy to consolidate or re-finance these loans. They can actually work in your favor.

No, consolidation is generally one of the last places to go when getting your debt under control.

The first place to go is your Spending. Get your Spending inline with your Income and not your dreams. Then you can make progress OUT,

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