A debt consolidation loan allows you to pay most of your debts through one monthly payment.  Even though the debt consolidation loan simplifies the monthly payment, you may have a larger loan with new credit costs for a longer period of time.  This may not be the best solution for you.

Ask yourself whether you can meet the terms and conditions of a consolidation loan.  Some companies offer consolidation loans by giving you a second mortgage or home equity line of credit.  In this situation you are using your home as collateral.  The danger is that if you cannot make payments or are late paying, you could lose your home.