One of the things people sometimes fail to consider when opting for a debt consolidation loan is the fact that they are trading what should be unsecured, short term debt for secured (by your home) long term debt. The immediate relief brought about by trading a slew of problems in for a lower interest rate seems to be a salve for your problems, especially when things are getting very sticky. But there are some good reasons to consider NOT taking out a debt consolidation loan, and we need to look at some of them in order to make rational decisions.

The primary reason to be careful when considering a debt consolidation loan is that if you have further problems down the road, this relatively small (compared to your house) unsecured debt becomes a really good way to lose your house. Not only this, but the cost of that money that was on those unsecured debts, whether they were credit cards, installment loans or whatever, becomes ever more expensive as the time frame for paying this off has magnified greatly because it either became part of a new mortgage or is tied into your house some other way. What could have been paid off in just a few years for modest amounts of interest now takes 30 years, and oodles of interest!

This should be taken into account. You might also consider whether it would be better to try and negotiate with your creditors, and avoid this type of loan altogether. Something to think about!