If you are looking at debt consolidation resources to find if you have the best solution for your money problems, you might be at a loss. Multiple debts can be overwhelming and can hold you under water for a long time. Decide on a few things first and then you can see if consolidating is right for you.
If you have a low income, the debt consolidation resources might ask you to consider consolidating in order to manage your debt. You can pay lower installments over a longer period of time. It might suit your current financial condition, even if you pay over a longer period of time. If you have several loans right now then you might be having a tough time figuring out interest rates. You also will no longer need to handle calls from the collection agency. The debt consolidation company does that for you.
Problems that these debt consolidation resources might mention are that many debt consolidation loans are secured loans. This means that you have to pledge some asset as collateral for the loan. You then risk losing that assets in case you cannot pay back the loan. You should be confident about health, job and other unpredictable issues that can cause financial issues. To be qualified for unsecured consolidation loans you must have a pretty good credit rating. Even if you manage to get an unsecured consolidation loan with a poor rating, it will probably not be big enough to pay all your debts.
Many people wrongly assume that all consolidation loans have low interest rates. In most cases the payment is lower because of the extended term and not the interest rate. Secured consolidation loans sometimes have a low interest. But it can still cost you if you are taking a long term loan, say for 30 years. Depending on your present debt, the interest rates for these consolidation loans can be more than those on the pre-existing debt. That is what makes debt consolidation a profitable business for your lenders.