These reasons are always followed up with a litany of reasons why debt consolidation is a bad idea. There are a few negatives associated with debt consolidation - if you don't make changes in your mindset and the way in which you deal with money.



First of all, the reasons for you to get a debt consolidation loan are pretty compelling:

- Generally lower overall payments

- Ability to combine multiple debts into a single monthly payment

- Lower interest rates - especially if debts being consolidated are credit cards or many types of high interest consumer loans such as computer loans, furniture loans, etc.

- Possible tax advantages

When you combine all of the benefits together into a debt consolidation loan, the benefits are compelling and the savings are real. The benefits of consolidating today far outweigh the negatives. While we're on the subject I'll go ahead and address the perceived negatives and explain the reasoning behind my position that they're really not negatives at all, but undeveloped opportunities.

The reasons most frequently cited as reasons to avoid taking proactive steps to improve your financial situation with debt consolidation as a vehicle for driving you out of your current debt problems are as follows:

- You're not likely to be able to handle the temptation to repeat the same financial mistakes that put you into this situation in the first place

- A debt consolidation loan puts your home at risk - and not just your credit rating

- It could take longer to pay the debts off than it might if you don't get a debt consolidation loan

Do you see a common thread in all of these reasons cited for avoiding debt consolidation?

They all have one thing in common: They all involve your mindset and your commitment and dedication to achieving a specific goal. This is grade school stuff - and it's easy to overcome.

It's true that you're going to be faced with the temptation to make the same money mistakes again that gave you a huge stack of unpaid bills.

The solution is to close the accounts and take away the opportunity to repeat the vicious cycle of debt. If you don't have the accounts any more you can't very well charge them up again.

If this is a concern that you have, after you close the offending accounts, contact the credit reporting agencies and request that they "lock" your credit.

This will prevent you from using credit as a crutch to make impulsive purchases. You'll still have access to your credit in a pinch, but you'll have to work a little to get to it.

This strategy isn't so different from the dieter who forces themselves to walk 5 miles to the convenience store if they want a cookie. It won't stop you from getting it, but you'll have to be really dedicated to getting it in order to expend the energy in laying your hands on it.

It's no secret that a debt consolidation loan puts your home at risk. However, if you refinance when you get a debt consolidation loan you can kill many birds with one stone. You can snag a great new - and much lower - interest rate, reduce the number of bills you have going out each month and generally improve your financial situation.

Sure your home's at risk; however, you have to live somewhere. With your home being on the line you're much more likely to do whatever it takes to change your mindset about money.

If your monthly payment is still less than you could expect to pay if you were paying rent, you still win. If you fall down in the mud you shouldn't decide to stay there because you'll have to clean yourself if you get out.

The last reason given for avoiding debt consolidation is that it could take longer to pay off than if you don't get a consolidation loan. It could take longer, but it's not likely. It can take 25 years to pay off a credit card by making minimum monthly payments. The interest staggers the imagination. Even if it takes you just as long to pay down a debt consolidation loan the interest rate is likely to be much lower. A 20-25% interest rate could be as close as a late payment or two.

As you can clearly see, you're absolutely better off taking positive steps to improve your situation than in doing nothing. To do nothing is to get nowhere. Going nowhere financially has never changed a thing in anybody's life. Don't you agree?