Personal loans or home equity loans used for credit card debt consolidation can be a very dangerous pitfall for many Americans who do not understand the full economic impact of using such loans. These credit lines are usually back to their limits soon afterwards, thus directly compounding the continuing problem. While debt consolidation programs often offer consumers a lower overall interest rate and a larger tax break, the sad realization is that many consumers who take out consolidation loans often find themselves in a much worse financial situation than before; only now the consumer faces the very real possibility of losing one of their most valued possessions - their home.