 TITLE: What Is Debt Consolidation? CONTENT: What Are the Disadvantages of Debt Consolidation?\n-------------------------------------------------\nWhile debt consolidation can be hugely beneficial for some people, it's not for everyone. First, keep in mind that there's no guarantee you'll be able to qualify for a balance transfer credit card or debt consolidation loan with a lower interest rate than that of your existing debt. If you have good credit, it will be easier to qualify. But if your credit needs improvement, it's possible you won't be able to get the lower rate needed to consolidate your debts and save money.\nAlso, be aware that if you extend the term of your original loan, it can actually become a more expensive proposition. Even if your interest rate is lower, it can still cost you more over time if you take longer to pay off the debt.\nSome debt consolidation methods, such as an unsecured loan, require no collateral. Other options, such as consolidating your debt with a home equity line of credit (HELOC), can put your assets at risk. Before you go down that road, make sure you can stay on top of the payments so you don't find yourself at risk of losing your home. END