Downsides to consolidation
Submitted by poorteacher on Tue, 09/16/2008 - 22:15
The most obvious downside is that even though your payments are smaller, you are extending them over a longer time. That means you’ll pay out more total interest. Also, as with any kind of consolidation loan, the borrower may be tempted to spend more or even borrow more because of the smaller loan payments. Then you’re just piling up more debt than if you hadn’t consolidated.