Debt Consolidation Loans

Debt consolidation allows you to combine all your loans into one. Essentially, it can give you a way to reduce your interest rates and fees, thereby giving you a way to get yourself out of debt. If you choose to consolidate your debt, you’ll have one loan repayment to worry about rather than several. However, it’s important to also consider refinancing costs and early payout fees from your existing loans to see if the cost of consolidating is more than the money you will save.

For example, you owe $2,000 on your credit card, $2,000 on a store card, and $6,000 on a personal loan, you can look for a debt consolidation loan of $10,000. Apart from leaving you with a single repayment, you no longer have to deal with different interest rates and multiple fees, so it can also lead to savings in this way.