Why have a debt consolidation loan?
The interest rate on a credit card debt will usually be much higher than the interest rate on a debt consolidation loan. Therefore a debt consolidation loan lets you pay off what you owe instead of paying endless interest charges. A single monthly payment is much more manageable than paying off several different credit cards etc. With a single loan it is much easier to work out how much interest you are paying. Managing a single loan is likely to be less stressful than responding to several monthly credit card bills. Once you have paid off all your credit cards and other debts you will not receive letters demanding payment or letters threatening legal action etc.
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