Debt Consolidation: Is It Right for You?
When consolidating your debts makes sense, when it does not, and what to watch out for.
What debt consolidation changes
Consolidation replaces multiple balances with one loan or facility. The goal is usually lower interest, lower monthly payments, or simpler management.
It can improve control, but only if total repayment cost and behaviour both improve.
When it can help
It may be useful when existing rates are high, credit profile supports a better offer, and you commit to stopping new revolving debt accumulation.
A realistic repayment plan with defined end date is essential. Lower monthly payments alone can hide longer-term cost.
Red flags and alternatives
Watch for high fees, variable rates that reset sharply, and products secured against your home for unsecured debts.
If consolidation is not viable, negotiated payment plans, snowball or avalanche strategies, and budget restructuring can still deliver progress.
Put This Into Action
Model consolidation options and compare them with snowball and avalanche timelines inside FIQ Personal before committing.
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