With so many institutions vying for a share of our incomes, both current and future, it's no surprise that debt consolidation loans are becoming an attention getter in the finance world. Consumers may start a mortgage, take out a personal loan for a car, boat, holiday , max out the credit card and even run up huge debt on store cards. And each of them is charging a different rate of interest and varying fees.

Is it worth consolidating all that debt into 1 loan? The answer: Possibly. The real truth to answering this question lies in how will you handle your money if you do consolidate all your loans? Will it free the credit card up for more purchases or do you plan to reduce the limit or even get rid of the card altogether? Will you set yourself a budget and work at sticking to it?

While the answer to having all your debt consolidated into the one loan is an emphatic yes, unless you change your finance habits you will find that this may become a bigger burden to carry. Think it through carefully and make more changes to your habits than just consolidating your debt.