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One of the fundamental purposes of a debt consolidation loan is to enable you to pay out less each month. This is achieved by using the consolidation loan to pay off your existing loans and then spreading the repayment of the consolidation loan over a longer period. Sometimes the rate of interest on the consolidation loan will be lower than the average you paid on your previous loans and if so, this will also contribute to lowering your monthly repayment.
Depending upon your circumstances, you might be able to reduce your total monthly repayments by as much as 75% simply by consolidating your debts into one single loan and spreading the outstanding balance out over a much longer period of time. This gives you the chance to get on top of your finances and get your monthly cash flow under control.
If you are able to repay loan more rapidly than you had planned then so much the better.
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