Texans who are considering debt consolidation might not know that it is not the only way to solve debt problems. One man who turned to debt consolidation to deal with his money issues found that while it was effective in many ways, it did not solve the problem completely. A credit counselor commenting on his case noted that debt consolidation is more like a bandage than a cure for financial issues, and cutting spending is the way to address the real problem.
The money issues faced by the man came about when he took out a loan and soon started missing payments. Then, when his daughter needed financial help with raising a family, he took out payday loans. The payday loan was very damaging because the majority of his paychecks went to paying back these debts. Finally, his daughter lost her job, which meant that she would be unable to pay him back.
The man was not dealing with financial troubles for the first time. In fact, over 10 years ago, he had filed for bankruptcy. When he decided to seek debt consolidation this time, he received many benefits, including a lower interest rate, a lower monthly payment and paid-off credit cards. Nonetheless, he still eventually had to file for bankruptcy again because his spending habits caused his financial problems. According to the man, about three fifths of his spending was unnecessary. Using only cash and saving for purchases has been useful for the man as it has led him to cut back on needless spending.
People who are unsure of how to address their debt might make time with a lawyer who may be able to confer with them on their financial issues. A bankruptcy attorney might give clients information about the benefits of bankruptcy, the types of bankruptcy and how the filing process works.