A debt consolidation loan is an installment loan with repayment terms usually lasting between two to five years. These loans are used to combine your existing debts into a single debt with one monthly payment.


Utilizing a debt consolidation loan can help reduce the total interest you owe on your debt, and help you pay it off faster. It can also make paying down debt simpler, as you only have one monthly payment to account for in your budget.

The availability and interest rates of debt consolidation loans largely depend on your individual credit score. The better your score, the more options you have and the lower interest you’ll pay.