Many of us in this day and age have asked the question, should I consolidate my debt. The answer can only be maybe! For some this is the right option, for others it's not, below are a few things you should ask yourself before consolidating debt:

1. By consolidating your debt wil you have the discipline to use the money saved each month to pay off the new loan?

2. Will the debt consolidation process actually put you in the position of having to stay in debt for two or three times longer than it would to pay off your current debts?

3. Do you have an assets that you could sell off the pay one or all of your debt?

4. Do you have any other cash in savings accounts that you could use to pay some of your debt?

Try to remember that many people take out a debt consolidation loan only to spend the money saved on other items and in many cases end up borrowing again. If you find that by consolidating your debt you will be in debt for much longer, then it would make little sense to consolidate, having six small debts paid off in 4 years is much better than having one very large debt that takes ten years to pay off.

If you have now decided that your only option is to consolidate, then below are a few tips which may help:

1. Always shop around for the best deals going. Just 1% less can make a big difference on a large loan.

2. Don't always think that the longest repayment plan is the best. You could save a lot of money by choosing a shorter repayment term.

3. After consolidating your debts, always use every penny of the monthly savings towards the balance of the new loan.

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