If you have multiple debts, you can understand how challenging it can be to keep track of every payment you have. Each loan has a different interest rate, different monthly payments, and different due dates for those payments. Managing all this can lead to a lot of confusion and even possibly missing payments. Debt consolidation could be an option to help you manage only one loan for all of your loans.
Debt consolidation is when you bundle all of your loans into one loan through a bank. Whatever bank you get a consolidated loan with will provide you with the full amounts that you owe for each debt to allow you to fully pay off that debt. This is typically done when you have multiple loans with a very high-interest rate, usually credit card debt. When you consolidate your loans, you can usually get a lower interest rate, which can help you save money. In addition, consolidating your loans will allow you to have only one loan with one monthly payment and one due date. It can help you make a better plan to pay off your loans as well by just having one debt to worry about instead of multiple debts.
