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The biggest problem with debt consolidation is that it doesn’t address the reasons why you got into debt in the first place. If you don’t change your spending habits, then consolidating debt is only going to be a short-term fix. 

Debt consolidation is also may not be for you if your credit score is low and you’re unable to qualify for a lower interest rate. Simplifying your monthly payments is helpful, but only if you can eliminate the amount you’re paying in interest

While you can use your home equality loan to consolidate your debt, it is not always advised. You will be converting your unsecured loans into a secured loan. While this will result in a lower interest rate for the debt, you will be putting your home in jeopardy if you’re unable to make the monthly repayments. Sometimes, if you are consolidating for the wrong reasons, it might not be worth it. 

And finally, if you use introductory 0% or low APR  credit card for a balance transfer, be sure when the introductory 0% APR offer expires, your debt is paid off by that date.  After that date, the interest rate is likely to skyrocket, and if you still owe the balance your balance, you could end up in the same financial situation you’re already in.