Consider debt consolidation loans very carefully.

The appeal of a loan to consolidate all of your debt into a single obligation with a lower interest rate is understandable. However, be sure that you can really repay that amount. Understand clearly the term, interest rate, and fees associated with the loan. In some cases, lowering the interest rate doesn’t make your present debts manageable, only delays the day of reckoning. Also find out whether the loan will be payed off over the life of the loan, or whether you will owe a “balloon” payment at the end. For all too many borrowers, balloon payments are simply an invitation to enter into another loan, resulting in a cycle of debt that is difficult to escape from.