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I wrote an article recently on the differences between credit card refinancing and debt consolidation where I briefly touched on the pros and cons of debt consolidation, but I wanted to give a more thorough list of pros and cons to help you make an informed decision.

As a reminder, there are many methods of debt consolidation, but for the sake of simplicity and time, we will focus on the pros and cons of debt consolidation loans as these are the most popular.

The list of pros and cons for debt consolidation is from highest to least importance:

Pros and Cons of Debt Consolidation Picture of Pros
Pros and Cons of Debt Consolidation Picture of Cons

Debt Consolidation Alternatives:

There are many different alternatives to debt consolidation, such as mortgage refinancing, credit counseling, debt settlement and bankruptcy. The important thing to note is that debt consolidation can be a good means to eliminate debt, but the greatest detriment can be to those who add more money on the credit cards they were initially consolidating OR do not use the full funds for the consolidation.


The goal of this article was to explain the pros and cons of debt consolidation and to provide some alternatives if debt consolidation is not right for you. If Debt Consolidation is right for you, feel free to compare your options by clicking the button below.

Post Author: Ben

Ben is a co-founder and writer for Ascend Finance. Before Ascend, Ben held various executive roles at personal finance companies. In his free time, Ben enjoys spending time going on adventures with his wife and two young daughters.