If you have several debts with different lenders, you might want to take out a single loan to consolidate your borrowings.
A consolidation loan can make it easier to manage your finances as you have to make only one monthly payment. It could even be cheaper as you might be able to arrange a lower interest rate. But remember to pay off your existing loans and cut up any credit cards straight away so you aren't tempted to run up more debts.
Also, you often pay more in total with a consolidation loan because you are usually borrowing a larger amount over a longer period.
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