Is Debt Consolidation Right for You?

Debt consolidation combines several existing debts — store cards, credit cards, other loans — into a single new loan with one monthly repayment.

The appeal is obvious: instead of tracking multiple due dates, rates and minimum payments, you have one account to manage. That alone reduces the risk of missing a payment and damaging your credit record.

Whether it actually saves you money depends on the interest rate and term of the new loan compared to your existing accounts combined. A longer term can lower your monthly repayment but increase the total interest paid over time — always compare the total cost, not just the monthly figure.

Before consolidating, list every account you'd include with its current balance and rate, so you (or your advisor) can compare it properly against any new offer.