Decide Whether to Consolidate Debt Into One Loan

A consolidation loan promises one simple payment and a lower rate, but it can also just be a way of resetting the clock on debt you have not actually paid off. This walks through your real numbers, works out the break-even point, and warns you about the classic trap of clearing cards only to run them back up.

You are considering consolidating several debts (credit cards, an overdraft, a personal loan) into a single consolidation loan. Ask me for my current balances, interest rates, and monthly repayments on each, then the terms of the consolidation loan on offer. Recommend whether consolidating is a good idea, name the break-even point where it stops being worth it, and flag any risk of it enabling further borrowing on the now-cleared cards.