One repayment, not several
One of the biggest challenges of maintaining multiple debts is dealing with the stress and clutter of handling multiple repayments. The more debt you take on, the more difficult it gets to track all repayment obligations. A debt consolidation loan allows you to reduce your multiple repayments into just one, with one interest rate. If you take out a debt consolidation loan, you will have to repay those debts and only pay one lender, one regular repayment.
With a debt consolidation loan, the overall interest you will pay will often be reduced against what you’d pay on credit cards. While you should always check the interest rate of a debt consolidation loan before applying, it may be a solution that could save you some money in the long term.
Have a clear date of the end of your debt
Another benefit of consolidation loans is being able to have an end date on your loan. This can help you work towards paying off your debt in a single loan. Having all your debt and repayment dates simplified into one payment can help you understand clearly what you owe and how long it’ll take you to pay it all off.