If you are in debt to a variety of financial entities and are looking to make your repayment plan easier, a consolidation loan may be the right solution for you.  A consolidation loan is used to repay existing debts. Since most consolidation loans are at a fixed interest rate, you will pay back the loan at a fixed rate for a set period of time. Now, instead of keeping track of multiple loans and payments, you can focus on repaying one single loan. Additionally, this may help you avoid adjustable interest rates, thus lowering the total amount you owe.

 Another benefit of consolidation loans is that they can be used for a wide variety of debts. You can use your debt consolidation loan to pay off your high-interest car loan, pay off your credit cards, and even pay back student loans.