To consolidate or not to consolidate that is the question.  Just today, I got a debt consolidation offer in the mail.  Basically, I could take all of my unsecured debt, mainly credit cards and I could consolidate them into one account and make one payment.  The debt consolidation company of course says this payment would be lower and would save me money on interest, but my question is “Should I do it?”

Further research reveals, the consolidation can drastically reduce your interest rates from possibly 20-27% down to 5 - 10% depending on your current credit rating.  However, it could stretch it out over a number of years even as many as 10.

The answer really truly depends on what your goal is, to get out of debt quicker or to reduce your payment amount.  Once you answer that question, you can more easily answer the question posed here, “To consolidate or not to consolidate?”

For more information on getting out of debt in 3-5 years click here.

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