If you’re combining loans with high interest rates, a debt consolidation loan with a lower interest rate could save you money over the life of your loan. As always, we recommend doing the sums before you apply. In addition to a low interest rate, here’s what to look for when comparing debt consolidation loans. Fees If your current loans have fees for early payout, you’ll need to add this to your total debt amount. Debt consolidation loans with no ongoing fees can help you avoid extra costs. Loan terms This is the length of time you will be paying off the loan. A longer loan term can reduce your repayment amount while a shorter loan term means higher repayments, but your loan will be paid off sooner. Repayment amount Review your budget to ensure you can make your weekly, fortnightly, or monthly repayments.