When consolidation makes sense
You qualify for a new loan at a lower rate than your existing debts.
The lower monthly payment is genuinely affordable and sustainable.
You have a repayment plan for the new consolidation loan.
You will not accumulate additional debt on the freed-up existing accounts.
When consolidation is a trap
You extend the total repayment period to reduce monthly payments — meaning you pay more interest overall.
You continue using the freed-up credit cards or overdrafts and end up with both the consolidation loan and new debts.
The consolidation loan itself is at high rates (subprime consolidation, doorstep loans) and worse than the existing debts.
Alternatives to consider first
Speak to existing creditors about reduced payments or interest freezes — often available without new borrowing.
For unaffordable debts, a formal solution (DMP, DRO, IVA, bankruptcy) addresses the underlying problem without adding new debt.
Free debt help specialists can review your situation before you take on more borrowing.
The affordability question
If you cannot afford the total debt at any reasonable rate, more borrowing does not solve the problem — it postpones it and often makes it worse.
Debt help specialists can help identify whether affordable consolidation is realistic or whether a formal solution is a better fit.