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

Debt consolidation may not offer the savings you're counting on, and in some cases, it could cost more over time. /iStockphoto As household debt levels grow and repeatedly surpass prior record highs, and as credit card interest rates remain elevated , millions of borrowers are now searching for relief from their high-rate debt. And, in many cases, these borrowers ask for advice and are told the same thing: Consolidate, simplify your debt and save . That logic is easy to follow, too. If you swap multiple balances for a single loan with a lower rate and a predictable payment, the path forward typically becomes clearer. But that tried-and-true solution is also starting to look less certain in the economic landscape of May 2026. While consolidation can still streamline repayment, the math behind consolidation isn't always as straightforward as it seems. Personal loan rates have come down from their recent peaks, but they still sit in the double digits for many borrowers. What that means is that the gap between what you're paying now and what you could pay if you consolidate your debt may not be as wide as expected. At the same time, lenders are tightening their standards amid an uncertain economic landscape, and when you add in the loan fees or extended repayment timelines, this path may not deliver the savings some borrowers are counting on — and in certain cases, it could even cost more over time. Below, we'll explain why (and what alternative strategies to consider instead). …