Considering a debt consolidation loan? Don’t rush into it. A debt consolidation loan is often believed to be a cure-all for anyone who’s dealing with multiple loan payments, no matter what kind of loans you have. But a debt consolidation loan has several significant drawbacks-and there are other options out there for debt relief. If you’re considering a debt consolidation loan, here are a few things to be aware of.

A debt consolidation loan doesn’t lessen your overall debt. A debt consolidation loan can reduce your fees and interest rates. But it doesn’t bring down the actual amount of debt you have. This might be fine for those who have a manageable amount of debt. But for those who are having more serious trouble with payments, this type of loan isn’t necessarily the best answer. Other options, such as debt settlement, do reduce the actual amount of your debt. These options should be investigated before you decide on a consolidation loan.

You put your assets at risk. A consolidated loan is a secured loan-meaning borrowers are required to put up something of value, like their house, as security for the loan. If you can’t make payments on the loan in the future, your lender has the right to sell your house in order to collect on your debt. In many cases, when you consolidate your loans you change unsecured into secured loans. This means you have more to lose if you default. If you default on an unsecured loan, you don’t stand to lose your house.

Your interest rate isn’t always ideal. Consolidation can lower your interest rate. But as market conditions change, it can also lock you into an interest rate that’s higher than the current market rate. With some types of consolidation loans, you need to get the timing right in order to lock in the best interest rate possible.

You could end up paying more over time. “Compound interest” is interest that’s charged on top of the interest you already owe on your loan-and the longer you take to pay off your loan, the more you’ll pay in compound interest. Consolidation spreads out your payments over time. This means that if you’ve got a compound interest loan, you could actually be paying more in compound interest than you would ordinarily.

A debt consolidation loan isn’t your only option for debt relief. For many people, debt management or debt settlement is a better choice. With these debt relief plans, you could see your overall debt lowered by as much as 70%.

If you’re considering a debt consolidation loan, don’t assume it will be the best option for you. Consider the pros and cons carefully. Talk to a financial professional, and make sure you have a thorough understanding of how consolidation will really affect your payments. If you do, you’re much more likely to make a financial decision that’s right for you.