Credit card consolidation offers these advantages: Lower costs: consolidation can lower your interest rate.   Simpler finances: replace multiple bills with a single monthly payment.  Easier budgeting: one consistent payment is easier to manage than many varying payments. Lower credit utilization: replacing credit card debts with an installment loan can reduce credit utilization and improve your credit score. Credit card debt consolidation won’t eliminate debts, but it can reduce interest costs and make debts easier to handle.