The Truth About Debt Management

by Dave Ramsey

Myth: The debt management companies on TV, like AmeriDebt, will save me.
Truth: You may get out of debt, but only with your credit trashed.

Debt management companies are springing up everywhere. These companies help "manage" your debt by taking one monthly payment from you and distributing the money among your creditors, with whom they've often worked out lower payments and lower interest. This is not a loan as with debt consolidation. Sometimes people get the two confused. Both are bad, but we have already covered the debt consolidation loans. However, because America needs serious debt help, the debt management business has become one of the fastest-growing industries today.

Companies like AmeriDebt and Consumer Credit Counseling Service can help you get better interest rates and lower payments, but at a price. When you use one of these companies and then try to get a Conventional, FHA, or VA loan, you will be treated the same as if you had filed Chapter 13 Bankruptcy. Mortgage underwriting guidelines for traditional mortgages will consider your credit trashed, so don't do it. Real debt management help is found only in changing your behavior.

In short, debt management companies are out. Hard work is in. Change your financial behavior and change your life...for good. True debt management is about one thing, you controlling your money.

Real Debt Management

The good news is that there's not some magical, mystical formula to good debt management. The solution is common sense and having a plan. Grandma's simple way of handling money. Real debt management is 80% behavior and 20% head knowledge. It isn't rocket science as some debt management companies try to make you believe.

Is it easy? No. In fact, it's really hard most of the time. But it's worth it. It's amazing to see people change their lives through simple determination and having a plan that works...every time. Once you have a good debt management plan in place, it.s only a matter of time.

We have people every week email or call us about how they have paid off $10k, $20k, sometimes even $100,000 in debt. Now, you may be thinking, yeah right...they must be making six figures to do that. NO! These are just people who are serious about getting out of debt. Many of them only making $30,000 to $50,000 when they decided to be debt free. It's all a matter of attitude. We call it "Gazelle Intensity". For over 10 years, we've been teaching people how to beat debt and build wealth.

Success Stories

"We needed direction. We started The Total Money Makeover Plan and got on the narrow road to Financial Peace. We'll have paid off $11,000 in eight months and are well on the road to debt FREEDOM!"

-Kathy and James Smith

"We've actually relieved ourselves of over $50,000 worth of debt in two years just from using these principles."
-Russ and Mary Lee

Dave Ramsey is a personal money management expert, an extremely popular national radio personality and best-selling author of "The Total Money Makeover: A Proven Plan for Financial Fitness." In his latest book, a follow-up of his enormously successful New York Times best-sellers Financial Peace and More Than Enough, Ramsey exemplifies his life.s work of teaching others how to be financially responsible, so they can acquire enough wealth to take care of loved ones, live prosperously into old age, and give generously to others. This content is provided by DaveRamsey.com and may be used only in its entirety with all links included. Dave Ramsey is changing the face of America by helping people.

Copyright © Dave Ramsey. Permission to republish granted to Pregnancy.org.

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