For some people, debt consolidation may not be the answer.
In fact, it could do further harm to your financial situation.
There are many reasons why people consider debt consolidation.
Debt consolidation isn't the best solution for everyone.Depending on the consolidation method, you will end up with either revolving debt or with an installment loan that has fixed monthly payments for a set period. To consolidate in this way, look for a 0 percent or very low-interest balance transfer offer and apply for the new card (or you may receive balance transfer offers with a current card you are carrying).Each type of debt consolidation has its pros and cons, and the best choice depends on the situation, says Cary Carbonaro, certified financial planner and author of “The Money Queen’s Guide: For Women Who Want to Build Wealth and Banish Fear.” “There really is no one-size-fits-all,” she says. When you apply, you’ll supply the credit card number and amount you want to transfer from your old card.If you’re overwhelmed by debt and juggling payments to a slew of creditors, consolidating your debts can offer some relief, as well as help you pay off what you owe more quickly.Debt consolidation involves taking two or more outstanding balances and rolling them into one, ideally at a better interest rate. If all your debt is on credit cards, you have good credit and you think you can pay off your debt within a year or so, a credit card balance transfer might be your best consolidation option.Let me tell you a little bit about my experience and catch you up to where Prosper is today in this Prosper Loans review.