Use a debt consolidation loan to repay your debts to several or all of your existing creditors.
You are then left with only one outstanding loan.
Your consolidation loan may also save you money in interest charges since the new loan interest rates will be lower than your old loans.
Your monthly payment will be substantially less than the total of your old loan payments.
This is especially attractive when you have high interest credit card debt. Sometimes it seems that some credit card companies charge higher interest than the loan sharks.
Usually the new lender will pay off your old debt directly for their own protection. The only monthly payment you will have to make will be to them.
They frequently will ask you to cancel your credit cards so you do not run them up again.
Shop around before you choose a consolidation loan since the terms and interest rates offered by competing financial institutions will vary. Get the best deal you can before you sign.
In order to qualify for a consolidation loan, you will need an acceptable credit rating and sufficient income to manage the monthly consolidation payment, in addition to paying for their regular monthly bills and expenses.
How much does it cost?
It does not cost anything to apply for a consolidation loan. However, a fee may be charged to open your file.