Debt Consolidation loans are loans that are taken out in order to pay off other debts. They usually have a lower rate of interest than the average credit card interest rate, and can make it easier for the debtor to pay their bills each month since a consolidation loan turns multiple creditors into a single, monthly bill. [ READ MORE ] It’s extremely easy to use credit cards beyond your ability to pay for the debt, especially when credit card companies are charging high interest rates on the amount you charge. If you happen to make a late payment, then you’ll be paying even more with late fees on top of your monthly payments and interest. [ READ MORE ] A debt consolidation loan makes it possible for an individual to pay off their other debts and make a single payment each month rather than multiple payments to each individual creditor. Basically, you apply for a single debt consolidation loan that can pay for each of your credit card or unsecured debts, use the money to pay the accounts in full, and then make one payment to the new debt consolidation loan. [ READ MORE ]