A debt consolidation loan can be a great option for you if you have many debts that you are having trouble repaying. You can easily use your loan to repay your debtors. Then, you enjoy one low monthly bill and a lower interest rate. The one loan is usually relatively simple to pay down. However, a debt consolidation loan may not be for you if:o You have a problem with spending. A debt consolidation loan is a risk. If you borrow money to pay off your debts but then promptly run up your bills again, you could be headed for bankruptcy. If you have a problem with compulsive spending, do seek counseling – and avoid debt consolidation loans until you know you can stay out of debt.o Your credit is very bad and you do not own your own home. If your credit score is very bad, you may not be able to get a great debt consolidation loan rate unless you go to a bad credit specialist. If you do not own a home, you cannot use a larger asset as collateral. Talk to your consolidation company if you are in this situation – often, they can offer viable options for your situation.o The thought of another loan is frightening. If you have been badly battered by unaffordable loans, getting another loan may make you uncomfortable. There is no reason to choose a debt consolidation option that will cause you anxiety – talk to your consolidation company for other debt options that can help you.o Your debt is a problem with one or two large bills. Consolidation loans work best for someone who has many debts and loans, all adding up to large amounts of money. If you have only one or two large bills with low rates, you may not get great savings out of a loan, especially if bad credit keeps you from a good interest rate. A good debt payment consolidation service may be a better choice for you.