Low existing rates or promotional rates: If your current debts have a low interest rate or you’re within an interest-free period, consolidating those debts using an item of credit with a higher interest rate could cost you more.
Longer term: Debt consolidation can simplify repayments, but it may also increase the time it takes to become debt-free. If you choose a longer loan term than you have left on the items you are consolidating to lower your monthly repayments, you are likely to pay more in interest over time.
Credit history: Debt consolidation usually means applying for a new card or loan. If you have a poor credit rating due to missed payments, defaults or CCJs you might find it difficult to apply for new credit items, especially ones with lower rates.