When applying for debt consolidation, you sign up for a bigger loan with a low interest rate to pay off all of your other unsecured loans (credit cards/personal loans). The creditor, i.e. a bank or money lender that offers you the debt consolidation loan, helps you pay off all of your existing unsecured loans at once. Now you are left with only one liability, and that’s the debt consolidation loan. You are required to pay a fixed amount for a fixed period of time on a monthly basis to pay off this loan. Be mindful of the following when finding the best debt consolidation loan:The shorter the payment span, the lower the interest rate and monthly amount of payment and vice versa. The duration to repay the debt consolidation loans in Hong Kong is usually up to 72 months. However, there is great flexibility in scheduling payments according to one’s resources and credit score. The eligibility, credit limit, and payment conditions of debt consolidation loans vary with different consolidation companies.Comparing the debt consolidation loans being offered, along with the interest rates, is crucial to finding which one is best for you.