Debt Consolidation - When it might be right for you

I’m often asked by Financial advisors if I am “anti-” debt consolidation loans. The answer is simple - No I am not.
What I am opposed to is debt consolidation loans that do not resolve financial issues.
You see, many people will consolidate their loans and simply HOPE that will mean they get out of debt and become debt free forever. As much as that might be a great fairy tale ending, the stark truth is different.

My research shows that most people (89%) who take out a debt consolidation loan end up back in the same situation within a few years.
Nowadays though, some loans are payable over many years - as much as 30 years. That's just like having another mortgage!

Debt Consolidation loans have their place, just like many other credit facilitities. However you should know when they are right and when they are not - so make sure you seek the opinion of more than one advisor. I would recommend talking to at least three, so you get a good objective perspective on things. Also seek advice from the National Debt Line and The Citizens Advice Bureau.