A debt consolidation loan can help you break free from debt, but a financial planner cautions against them for 5 types of people

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• Millennials and Gen Xers are saddled with thousands of dollars of debt on average.
• However, a debt consolidation loan isn't a one-size-fits-all solution, says CFP Uziel Gomez.
• Make sure you understand the full cost and are ready to pay it, both now and in the future.

The rising cost of living is no joke. To keep up with expenses, more folks might be resorting to high-interest debt. My friends and I talk about the "invisible pain" that is carrying a heavy debt load. I live in LA, where everyone seems to be doing fine with their Instagram photo dumps of boozy weekend brunches and weekend getaways.

Recent data from the New York Federal Reserve shows that over the last year, about 9.1% of credit card balances fell into delinquency. And Experian research reveals that Gen Xers are saddled with an average credit card debt load of over $9,000, while millennials have an average of $6,600.

While I try to avoid carrying high-interest debt and aim to pay my credit card balance in full each month, as a financial coach, people often come to me feeling overwhelmed and wanting help with looming credit card debt. Sometimes, a debt consolidation loan can help, but it's not always the answer.

I talked to certified financial planner Uziel Gomez, founder of Primeros Financial, an LA-based financial planning firm for first-generation Americans. We discussed five reasons consolidating your debt might not be the right call.

1. The projected overall costs aren't worth it 

If you have a ton of credit card debt, you might look at the average interest rate on your credit cards and compare it to the interest rate of the loan you're considering consolidating them to, but that's not the full picture.

"People think it's an apples-to-apples comparison, but it isn't," says Gomez. "That's because there are usually different fees for getting a consolidated loan." These fees may include an origination fee, which can be anywhere from 1% to 10% of the loan amount, application fee, and processing fee.

You might also get hit with a late fee or prepayment penalty down the line. "Look out for these fees that might not be as transparent," says Gomez.

Gomez suggests doing the math to figure out what you would be paying in total interest if you were to keep paying off your cards at the current rate. Then, compare the projected interest rate of the consolidation loan you had in mind, plus any fees.

2. You can't make the minimum payments on your current card

When you consolidate debt or do a credit card balance transfer, your monthly payments might be higher than your current minimum payments on all your credit cards. And if you aren't in a place where you can keep up with your minimum payments, there's a chance that you might fall behind.

Gomez recommends considering debt consolidation when you have been able to make your minimum payment for the last year — and have started to build an emergency fund. At that point, you can start making additional payments to pay it off, he explains. Once that's been established, then you can look into debt consolidation and a monthly payment that you can reasonably keep up with.

3. You're not ready for a fixed payment

Gomez says that his clients sometimes don't realize that debt consolidation loans usually have a set term and fixed payment. "Especially when they're new to having a lot of debt, they want to pay off their debt as quickly as possible," says Gomez. "If there are no prepayment penalties, I tell them, 'Hey, you're going to have this payment for the next three or five years.'"

If someone isn't ready for debt consolidation, Gomez recommends whittling away at your credit card payments using either the snowball or avalanche debt payoff method. Gomez says most people he's worked with have an easier time sticking to the snowball payoff method.

You can also negotiate with creditors, he says. See if you can have a payoff amount that is lower than the overall balance or just negotiate your current terms.

4. You don't have a good credit score

If your credit score isn't so stellar, you may find it difficult to qualify for a loan in the first place, or you might not be given the most favorable rate, says Gomez. Sometimes, it might be close to your current rate or even a higher interest rate than your current cards. If that's the case, then it's probably best you don't consolidate your debt.

5. You haven't established good habits

If you haven't established good habits to keep your credit card spending to a minimum, it's probably best not to consider a credit card debt consolidation loan or balance transfer card. One way to look at it: If you're ready for a consolidation loan, let's cut up your credit cards, says Gomez.

"Because once those credit cards have been transferred over to the new loan and you see your old credit cards at zero, I don't want you to use it," he says. "I don't want it to be a domino effect now where you got this new loan and, now you're using up this credit card that has a zero balance, and you're just going to be racking up now."

"You really can't pursue these strategies until you come and have a realization, I need to change some of these behaviors," says Gomez.