For borrowers managing multiple personal loans, consolidation could be a great way to simplify your debt repayment. Debt Consolidation is when you take out a single, large loan that can be used to repay all of your other loans and debt. Then, instead of making payments to multiple lenders each month with different interest rates and requirements, you will be making a single payment to one provider.
Debt Consolidation is especially helpful if you’re able to secure an interest rate on your new loan that is lower than the average interest rate of your previous loans.
The only downside to consolidating your debt is that you will likely end up having to repay your debt faster than before. Before consolidating your debt, be sure that you can make the payments on your new loan. It might also help you to repay large portions of your loans on credit rather than with a single loan, consolidating it in more manageable pieces.