Positives

• Benefit of cheaper interest rate
  
• Spread load of weekly or monthly commitment
  
• One payment instead of several
  
• Due date suitable to pay period
  
• Reduces the monthly/weekly payment
  
• Less creditors
  
• Changing rate from variable to fixed
  
• Going from revolving credit ie. creditcards to fixed term loan
  

Negatives

• May not benefit from cheaper rates
  
• Overall greater expense because payment spread over longer time, higher total cost
  
• Could free up credit to be used for addictive purposes
  
• By paying out credit cards gives opportunity to abuse card again
  
• History of consolidation may affect future loan applications
  
• Institution asking for more security
  
• Incurring the debt of your partner
  

DISCLAIMER The information provided in this information sheet is of a general nature only, and is not intended to be legal advice. There may be errors or inaccuracies or the information may not be completely up-to-date. Always check the information provided before relying on it. The information relates to consumer law in New South Wales, Australia.