Consolidating your debt may not save you money this May. Here’s why.

As household debt continues to rise and credit card interest rates remain high, many borrowers are seeking relief through debt consolidation. This strategy involves combining multiple debts into a single loan with a lower interest rate, which can simplify payments. However, in May 2026, this approach may not be as beneficial as it seems. Although personal loan rates have decreased from their peaks, they still remain high for many borrowers, and the savings from consolidation might not be significant. Additionally, lenders are tightening their standards, and fees or extended repayment terms could negate potential savings. Borrowers with lower credit scores may not qualify for the best rates, and origination fees can further reduce the benefits of consolidation. It’s important to carefully evaluate whether consolidation is the right choice or if alternative debt relief strategies might be more effective. QUESTION: How might the current economic conditions influence your decision to consolidate debt or explore other financial strategies?