Is there any reason not to consolidate? Absolutely. If you aren't careful, you could consolidate and wind up in much worse shape than you had been in. For instance, if you transfer your debt from, say, three credit cards to one credit card, and you're left with two credit cards that each have a $3,000 credit limit, you'd better be disciplined enough not to give in and use those cards, racking up another $6,000 in debt.