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For someone who is deep in debt, the words “debt consolidation” can leave a very tempting taste behind. Imagine, all your countless debts in one slick little package, and debt amount itself being lowered – considerably, taking into account the low interest rates. What is more, alluring lines such as “Cut your debts down to 50 percent or more”, “Zero interest rate” continue to entice debtors who are up to their neck in debt. If you are one of these people, and very tempted by the debt consolidation offers, you should know some things before you take any such steps. In fact, the three worst debt consolidation moves are outlined in this article in order for you to review your own situation and see if you’re making a mistake. First, beware of consolidators who promise you “easy-does-it” loans, because even though the interest rates might be lower, you will end up paying more in the long run. Debt consolidation loans are not easy to get, and certainly not easy to pay off. Let’s face it, if you need that loan that badly, you’re already at pretty high credit risk. Second, beware of consolidators who swear they’ll take care of “everything”. Yes, they say they’ll do everything – reduce interest, decrease monthly payments – all YOU have to do is sit back and pay once. This is such a myth. What really happens is that the monthly fee you pay them is inclusive of their own commission for the job. They act as mediators and give your debts to creditors, and get rebates on your debts from the lenders who are only too happy to get the money back. You’re paying someone else to do what you can actually do yourself at a much lesser cost to you – negotiate for a reduced interest rate and pay the higher interest debts first, not to mention stretch the repayment period duration. Third, watch out for the low interest balance transfer card trap. All this will sooner or later show up on your credit report, and make it look really bad. You could get turned down and stuck with the higher interest you were hoping to discard in the first place. Just make sure you close your account instead of making it look like the creditors did. Keeping this mantra in mind will help you avoid making your worst debt consolidation moves, and keep you on the right track financially.