Debt consolidation loans: What you need to know.
A debt consolidation loan is a new loan that lets you pay off old debts. Instead of paying back multiple debtors, you've rolled your debt into one monthly payment — one that usually has more favourable terms, such as a lower interest rate, a lower monthly payment, or both.
Borrowers typically take out consolidation loans to pay off credit cards, lines of credit, utility bills, and other forms of consumer debt. Is a debt consolidation loan right for you? Keep reading to learn more about how they work.