Tough one but nonetheless part of the world of rolling debt on debt. In an consolidation your debt doesnot go away and in fact is now being taken on by one creditor rather than the original bunch you are paying out. So. the interest rate charged by the consolidator is now subject to an evalutation system of debt vs assets and a rate is determined. However, by simply going in and needing a consolidation in the first place raises, “Red Flags” anyway to most lenders. A rate will be assessed likely 5 to 6 points higher than prime, perhaps even more if the risk is higher. It is not uncommon to see interest rates on consolidation loans upwards of 12 to 15%. These rates can be hidden nicely by “service and adminstration charges”