Yet these debt consolidation loans are not always a good idea. Here are some instances in which it would be wiser to stay away from them: if you are taking out a second mortgage to repay your unsecured loans, you will find that the toaster you put on the MasterCard is suddenly being financed for about ten years. Financially, this does not make a lot of sense. It would make more sense to sell the toaster and then use the proceeds to pay off the charge card. …show more content…
The odds are good that within a few short months you will once again use them and from there it is only a small step to actually maxing them out. Thus, only use debt consolidation loans for credit cards if you are willing to cancel the cards after paying them