There can be no doubt that debt consolidation is a good start to financial success. However, many people who go to the trouble of amalgamating all their debt into a single all encompassing payment then set about making all the same mistakes again. This then leads to them being even worse off. So, what is the solution? Rack up debt then re-finance it all at regular intervals? That doesn't sound like too much of a plan to me.

Debt consolidation certainly has its place in a financial plan. However, like the giant aircraft carrier, the USS Enterprise, it takes time to turn the ship around. The captain of the Enterprise can make a decision to bring this mighty ship to a complete halt in one second but the ship itself cannot stop on a dime. It's the same with financial affairs. You have to plan ahead.

You can make a decision to improve your finances, sure, but then you have to back it up with action. And old habits die hard, particularly bad habits.

Four steps are required:

1. A decision to change (you have to want to succeed)

2. Financial education (you need greater knowledge than what you have now)

3. A plan of action (without it nothing will change)

4. Discipline to stay with the plan (committing yourself to your plan)

An often over-looked area is the reason behind the lack of financial success of the past. What caused it?

Consider this:

Earning $100 and spending $101 causes pain and distress

Earning $100 and spending $99 eases pain and distress.

It is a simple formula that to earn more and spend less will create a buffer for financial success to commence. You will also need to research the concepts of "assets" and "liabilities" and "good debt" and "bad debt." These are terms that you will need to understand. Once you understand the basics then you can commence your wealth creation strategy. You might also like to consider engaging the services of a qualified Financial Planner.

One final thought - the sooner you start, the easier it will be. Just think of the Enterprise...

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