Pros and cons of consolidating debt

There are many reasons why people consider debt consolidation.

Cons of using a personal loan to consolidate debt include the fact that the more debt you have, the more difficult it may be to qualify for a personal loan.You may also want to consider credit counseling from a nonprofit organization like the National Foundation for Credit Counseling.Two pieces of folk wisdom help frame the debate over debt consolidation: “Many hands make light work.” “Put all your problems in one place — it’s easier to keep an eye on them.” The first suggests that a burden like debt is easier to shoulder when divided into smaller pieces.Increasingly, peer-to-peer lenders are also sources for personal loans.These are networks that match would-be borrowers up with a variety of investors who pool their money to fund loans in order to earn interest.