What is a Debt Consolidation Loan?

A debt consolidation loan is a type of personal loan which, as the name suggests, you can use for debt financing. Consolidate all of your other loans such as credit card debt or smaller personal loans into one. With a debt consolidation loan, you are essentially refinancing your old loans into one with better terms. It's one of the best options to clean out your debts and ease your repayments. There are several ways a debt consolidation loan can help you. First, you only have to make one payment on the same date every month. This is far more convenient than making one payment on different loans. You then only have to calculate and keep track of one interest rate instead of several. The biggest benefit here is that the interest on a debt consolidation loan is usually much lower than, say, the interest rate on your credit card. You could cut down on interest payments which could help you manage your debt and have a brighter financial future.