Many individuals are tied up in various kinds of debts. While this is a quite common occurrence in our society, being tied up to debt for a long time is never a positive thing for anyone. This is because the more debt one has, the harder it is to get out of the situation. The best way to handle it is to first have lots of discipline when it comes to paying off these debts and also in controlling one’s spending habits.In the recent years, there is one financial concept that has become more popular each day and that is that the concept of debt consolidation. The consolidation of debts basically involves paying out one’s various debts from different creditors by taking out a single loan for the needed total debt amount. In other words, a person takes out a new loan for consolidation in order to pay out all (or most) of the existing debts. In the end, the person ends up only have one huge debt to pay.It should be understood that the consolidation of debts is not for everyone and a person interested to have his debts consolidated should first evaluate whether that financial scheme is indeed right for him or not. To help determine if consolidation is indeed the right solution to a financial debt problem, here are some tips and pointers to consider:One must understand the various benefits of getting his debts consolidated. One of the advantages is that the person only has to handle one payment instead of several. That also means he only has to mind one statement of account and one creditor each month. That can mean freedom from creditor calls and emails reminding you of one’s piled up arrears.Another advantage to consolidation is that it is possible to increase one’s credit score. This is, of course, only possible if the new consolidated loan is paid off at the right schedule so the borrower must also ensure this.Now, let us take a look that the different draw backs one might face along the way. These drawbacks simply prove that if a person makes the wrong decision of filing for debt consolidation, then he might face more problems in the long run. That is why deep thinking and much research are required in order to determine if the consolidation of debts is indeed the right financial move.A person deep on debt has to know that any consolidation plan cannot change his spending habits. Even if a person finds a good debt consolidation plan with very low interest rates, there is still a risk of not getting out of debt in the near future if he does not change his spending habits. This simply means that if a person continues to spend as before and continues to pile up in new debt, then any kind of consolidation, however good the terms, would not help.Another important pointer to help you determine if consolidation is indeed right for you is the need to find a finance company or bank that is willing to give you lower interest rates than the interest rates you are getting from present creditors. Most people get drowned in debt, specifically because they do not pay the maximum amount they can afford, so the revolving balance piles up with a high interest rate. Now, if you are going to consolidate your arrears, you should take enough time and effort to look for a finance company willing to give you a much lower interest rate that what you are getting now. Otherwise, signing up for the debt consolidation program would be totally pointless. Keep in mind that your main purpose is to get a lighter payment program that would not subject you to a heavier financial load.