Some experts are saying that 0% balance transfers are a better way of servicing your debt than a consolidation loan as the latter are becoming more expensive.
According to the research carried out by EveryInvestor, people who have debts of around £10,000 could save as much as £1000 if they trasnfer their arrears to a credit card offering 0% instead of taking out a large debt consolidation loan.
Certainly if you can find the right 0% offers there are significant savings to be made on your debt. However, a consolidation loan means that you only have to service one debt instead of many small bills. This takes away a lot of the stress and hassle of debt management.
Some balance transfers will also charge hefty arrangement fees, meaning that the savings you make in interest can often be wiped out anyway.
The best way to find the most suitable solution is to shop around and do your maths. Whether you end up with a debt consolidation loan or a balance transfer it doesn't really matter as long as it works for you.