For every loan, credit card or store credit you have, you’re probably paying different interest rates and fees. And if you’re only making the minimum repayments, the interest you pay could end up being much more than the original purchase or loan amount. What’s more, keeping track of multiple payments with different due dates can be difficult.
Consolidating your debts into one personal loan means you only have one loan, one interest rate and one regular repayment. Personal loans often have lower interest rates than many other credit options, so you could pay less interest over the life of the loan.
And unlike credit cards, you can choose the term of your loan, so you have an end date in sight. You could even set up an automatic transfer from your bank account, so you have even less to think about.