Debt consolidation can be a siren song to someone burdened by unmanageable amounts of credit card and other debt. Getting creditors off your back by making low monthly payments sounds like a good plan. Unfortunately, many people – if not most – who attempt debt consolidation end up in worse shape than they started.
The biggest problem is that when debt is consolidated, it does not necessarily result in a change in behavior. According to experts, as many as 70% of individuals who participate in a debt consolidation streategy end up with even more debt a few years later. To learn more, read my latest article, The Dark Side of Debt Consolidation.