Is debt consolidation a good idea if you’re struggling?

Last Modified 16th of February 2021

Getting out of debt can be really hard at times and it can often feel like an overwhelming task you have to overcome. So if, like so many people, you have a lot of debt to work through, you might well have considered at some point using debt consolidation to ease the load.

So is debt consolidation a good option to help you out of debt? Let’s look at the facts:

Pros of debt consolidation

If you struggle to manage your money, having it all in one lump and just one monthly payment can take a big weight off. It makes it easier to know what you need to budget each month.

It also forces you to pay off a consistent amount each month. If you have a lot of overdraft debt it is easy to neglect the debt and not get around to paying it off.

If you have a lot of different debts a good debt consolidation company might be able to reduce the interest rate you pay, which could save you money.

You may be able to extend the overall time period you take to pay off the total debt, which would effectively reduce the monthly cost and make the debt more affordable.

Man Managing Debt

Cons of debt consolidation

Debt consolidation is a service and you usually end up paying for it. Sometimes you can negotiate a cheaper interest rate, but sometimes you can’t. If you can manage your debts OK on your own, you might be better off overall.

Reducing your monthly outgoings might be a nice idea, but this will mean paying more total interest on the debt. It is worth paying it off faster if you can.


All in all, debt consolidation can be a good decision for some people, but it might not be for others. Ultimately it is up to you to weigh up the pros and cons and to make sure you know what you are getting into.