Consolidation a strategy, not a cure
Montville’s attorney, Blake Brewer, says many of his clients have no idea how their expenses stack up against their income. They assume that their next tax refund or stretch of overtime will help them catch up, not realizing they’re consistently spending more than they make.
“These people are just shocked when I sit down with them and take out a calculator,” Brewer says.
Some of his clients consolidated their debt using a 401(k) loan or a home equity line of credit. They pride themselves on saving money because they lowered their interest rates, but they don’t realize they’re spending assets retirement accounts and home equity that generally would be protected from creditors in ban…
Read the full article at: https://www.dallasnews.com/business/personal-finance/2017/07/17/debt-consolidation-can-go-wrong-can-avoid