Paying down a large debt balance is like walking the tight wire. There's debt and creditors on your back while you walk carefully to the debt-free, financially healthy future at the end of the line. The huge stress of this balancing act can send you running towards an easier solution. But be careful-what looks like a safety net might just be a debt consolidation trap.

Trap 1: Low monthly payments

The low monthly payment promise from consolidation debt professionals can be misleading. Personal unsecured debt consolidation loans carry high interest rates, sometimes higher than credit cards. A debt consolidation with lower monthly payments may mean that you're paying more interest over a longer period of time. The new loan might also stick you with hidden fees and add-on costs, particularly if the lender targets bad credit borrowers.

Trap 2: Scare tactics

A debt counselor may throw out scary numbers about how long it will take you to pay off your debt. But unless you see the calculations and assumptions, don't put too much stock in these estimates. Use a free online calculator and run the numbers yourself. Test out small increases in principal payments to determine if you can manage a pay-down on your own.

Trap 3: Low introductory rates

You might be tempted to transfer balances to new accounts because of their attractive low introductory rates. This strategy entices borrowers into a cycle of opening accounts and shifting debt every few months. This cycle typically ends when the borrower's credit score plummets and the balance transfer offers disappear.

Debt consolidation isn't wholly bad, however. There are many good guys in the industry. The best companies to work with are those that offer budgeting and debt management counseling. If you own a home, you also have the option of using a home equity loan or mortgage refinance to consolidate your debt. These loans have lower interest rates than unsecured, personal loans.

The tight wire act of debt pay-down won't be an easy journey; but if you keep your head up, arms out, and your eyes focused on your goal, your financial life will cease feeling like a circus.