There are three primary reasons people choose to consolidate debt:
Simplify your finances.
Dealing with a single loan means you only have to keep track of a single bill, a single interest rate, and a single set of rates and terms.
Reduce your monthly payments.
If the monthly payments for all your current debts are more than you can afford, consolidating your debt into a single loan with one lower payment can make your debt manageable.
Save money on interest.
When a debt consolidation loan offers a lower interest rate than some or all of your current debts, it has the potential to reduce your total cost of interest. However, you’ll need to consider the duration of the loan, in addition to the interest rate, to determine whether your total amount repayable will be more or less.