In my humble opinion, this article contains some horrible — but very conventional — advice about consolidating your credit card debt with a home equity loan. My issue with this advice is that solving your debt problem by taking on new debt doesn’t really solve the problem. You’re just shifting your problem to a new source. Sure, mathematically you may save yourself some interest by consolidating.
But, let’s be honest: you’re obviously not all that mathematically oriented. If you were, you wouldn’t have gotten yourself into debt in the first place. Sorry, that’s a little harsh, but that’s reality.
Or, maybe you are mathematically oriented — if that’s the case, then the issue here is that the emotions involved with spending money have overtaken your math skills. That’s still a problem and it needs to be fixed.
What you really need more than a loan to consolidate your debt is a budget and a plan to help you live within your means. Like always, I will recommend Debt Free in Three. If that’s not for you, you at least need to set a budget, develop a financial plan for yourself, and to start living by it.
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