Consumers experiencing financial problems and thinking about a debt consolidation loan should think about it very carefully, according to one expert in the field.
Drew Johnson, an expert on the methods of debt reduction has warned that not all consolidation agreements work out - even for those that stick to repayments.
In his latest report, he states: "The problem with all debt-consolidation plans is that they only offer the illusion of positive action. Most balance transfer offers come with at least one catch: the low transfer rate is only temporary, or there is a transfer fee which negates the benefit of the low introductory interest rate."