Debt consolidation loans allow consumers to pay off the account balances from multiple credit cards, installment loans, or other accounts with a single loan, and then to make a single monthly payment on that new loan. To save money through a debt consolidation loan, the repayment period for paying off the consolidation loan generally should be shorter than what it would be for your existing debts without the loan. Secondly, the interest that you pay over the repayment period for the consolidation loan should be less than what you would pay over the repayment periods for your existing accounts. In some cases, a debt consolidation loan may look attractive because it has a significantly lower monthly payment than what you are paying today, but it is likely that the lower payment is due to extending the repayment of the loan over a much longer repayment period.
Use this calculator to find out how to consolidate your debt.