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Ask Dave

Sending Off the Bonus

Dave wants Shana to slightly alter her plan for making payments to a debt consolidation company.

QUESTION: Shana in Florida and her husband just finished reading My Total Money Makeover, and they are enthused to get out of debt. A year ago she began working with a debt consolidation company. There are three credit cards left to be paid, and she has a large bonus coming up. Does Dave recommend sending the entire bonus directly to the consolidation company?

Dave's ANSWER: Let them finish those up and call you, then you can send them the money. Don't just send the money and hope they do. I want to make sure that you don't end up with a bunch of money lying over there with them.

You've got that money over to the side, and then if this falls apart, you can use it to contact the credit card companies yourself and do the settlements. Since you've gotten this far, if they've actually done the job, lean on them and hopefully they can take it all the way through and finish for you. That would be a neat exception to the rule.

Watch them like a hawk because those companies have a bad reputation.