Key takeaways

Debt consolidation can simplify your finances and potentially lower your interest rate.

There may be upfront costs that can offset potential savings.

People with good credit may qualify for better loan terms, making consolidation a good option.

Debt consolidation involves combining several debts — such as credit cards, personal loans or medical bills — into a single loan with one monthly payment. This can simplify your finances and potentially lower your interest rate, depending on the loan terms and your credit profile.

Pros and cons of debt consolidation

You can consolidate nearly every type of consumer debt. However, debt consolidation loans aren’t a complete fix.…