Simpler payments do not automatically mean a cheaper debt.

The essentials

A consolidation loan replaces several debts with a new agreement. One due date can make administration easier, but a longer term or added fees can increase the overall cost. List the balance, rate, fees, and remaining term of each existing debt before comparing them with a new offer.

Put it into practice

Check whether old accounts would remain open and how you will avoid adding new balances. Be especially careful if unsecured debt becomes secured against a home or other asset. If payments are already difficult, speak to a reputable nonprofit debt adviser about the available choices before applying for more credit.

Before you decide

Use this guide as a starting point for your own questions. Check the current terms in your documents and the rules where you live. Keep a short written record of the options you compare, the details you still need, and your next step.

This is general educational information, not personal financial, insurance, tax, or legal advice.