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We wrote an article recently on the differences between credit card refinancing and debt consolidation. I briefly touched on the pros and cons of debt consolidation, but want to provide 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 we’ll 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. Debt consolidation can be a good avenue to eliminate debt. However, adding more money on the credit cards initially being consolidated or not using the full funds for the consolidation can be detrimental.

Most people prefer debt consolidation loans before considering debt management, debt settlement and bankruptcy as those options have more long term negative affects. If you do get into a situation where you cannot get a debt consolidation loan, here are the main debt relief options:

When considering these options, you will want to know the total costs, length, and pros and cons via a Debt Relief Calculator.


The goal of this article is to explain the pros and cons of debt consolidation. I also wanted 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 Tejes

Ben Tejes is a co-founder and CEO of Ascend Finance. Before Ascend, Ben held various executive roles at personal finance companies. Ben specializes in Chapter 13 Bankruptcy, Debt Settlement, Chapter 7 Bankruptcy and debt payoff methods. In his free time, Ben enjoys spending time going on adventures with his wife and three young daughters.