The two main reasons why so many individual looks to consolidate their existing debt is to The main reason why so many individuals look to consolidate their existing debt is to save money. Maybe you choose a personal loan with a variable interest rate and now rates are rising, or you have credit card debt that is asphyxiating you. By choosing a new consolidated loan you will be able to refinance your existing debt under new conditions. The whole idea behind doing this is to get you conditions that will save you money, meaning that you will pay less or to spread the loan in a way that your payments will be smaller. Before making any decision it is incredibly important for you to take your time and review all the pros and cons of consolidating debt. In most cases financial institutions will not allow you to refinance an already consolidated loan in at least 3 years, this means that you need to be 100% sure before committing. Otherwise, you can actually put yourself in a bad situation once more.