Should You Consolidate Debt?

x Don’t! Until you compare the pros and the cons of debt consolidation loans, service companies, and credit counseling.

You have two basic choices to consolidate debts.

  1. Credit Counseling Service
  2. Debt Consolidation

Deciding what will meet your needs will have a lot to do with whether you can qualify for low mortgage rates on debt consolidation loans, and the total amount of debt you need to consolidate.

Check out the Pros and Cons and compare before you decide which one is right for you.

Borrowing For Debt Consolidation


  • Immediately eliminates multiple debt payments

  • Debt collection actions eliminated

  • Won’t negatively impact credit rating

  • May help improve credit rating


  • Must qualify for loan or mortgage

  • Risk of losing house if unable to maintain payments

  • Doesn’t eliminate debt, only restructures it

  • Can create false sense of security

  • Easier to get overextended again

Debt Consolidation Services & Consumer Credit Counseling


  • May decrease monthly payments

  • May reduce debt collection actions

  • May eliminates interest and fees

  • Helps teach money management skills


  • May be unable to use credit under consolidation

  • May be qualified unsecured debt minimums

  • Only works with unsecured debt

  • Some unsecured debts may not qualify

  • Possible negative impact on credit rating

Making The Choice

One thing you won’t hear us say is which option to consolidate debts is right for you. Your choice has to be based upon your own personal financial situation, as well as make a good fit with your own belief system and lifestyle.

Our mission is to provide you with as much information as possible about the different debt consoli-dation choices you have, the pros, the cons, and the steps each requires you to take.