Does it always pay you to consolidate?

I was one of those people who always thought that debt consolidation was a very good idea for people who had a lot of small debts that they could no longer manage. Small debts, large debts it dosen’t make much difference – the difference IS though what consolidation package you choose…

Just say you have several zero interest loans as well as some charge cards that are over the limit and overdue – does it seem a little strange to take those zero interest loans and turn them into a loan that will last 25 years at something like 5-15% interest?…work out how much you will end up paying.

No, it does not always pay to consolidate but if you do go for that option ensure that the interest you are being charged does not exceed the interest already clocking up on your present debts. You want to decrease your liabilities not increase them.

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