When your personal finances teeter on the brink, your first instinct might be to do something drastic. Freeze your credit cards in a block of ice. Vow to never eat out again. Forgo your Netflix subscription.
These tactics may help, but financial experts say paying off debt requires a more comprehensive plan. One common strategy is debt consolidation, rolling multiple debts into a single loan or credit card at a lower interest rate.
Consolidating debt into one spot can be empowering and helpful from a psychological standpoint because it feels manageable, says Mathew Isaac, associate professor of marketing at Seattle Universitys Albers School of Business and Economics.
But debt consolidation is not a solution for everyone.
Consolidat…
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