If your debt consolidation loan carries a lower APR than the cumulative APR on your original. What debt solutions are available. There are a number of solutions for people who find themselves struggling with their debt, all of which are more suitable for certain situations or certain levels of debt. It's also possible to reduce your monthly payments with your debt consolidation loan, by making repayments over a longer period of time than your original debts. Debt consolidation loan A debt consolidation loan is a loan taken out to pay off your existing debts. One advantage of this is that it can simplify your finances by turning several debts into just one - meaning you only have to deal with one creditor (and one repayment) each month. Deciding on the Right Debt Solution Finding the right debt solution for your situation can make a big difference to your ability to repay your debts, as well as how long it takes you to repay them.

That said, it is sometimes possible to reduce the amount of interest you pay.

However, this means you may pay more interest than you would have on a shorter repayment term.