Do you want to tidy up your finances, clean up your debts and, most importantly, save money?

If you have several loans, it is possible to merge them into one. This step is called consolidation, and you've probably heard of it before. How does it work, what is it good for and what to watch out for?
It can happen once or twice. A person takes out a loan for household equipment, makes a few purchases with a credit card and, for example, overdraws an account with another bank before payment. And all of a sudden he has three loans that he repays to three providers, each on a different day, with different interest rates, terms and penalties if he defaults. If this is also your case and you don't have the option to pay off your loans quickly, it's time to consolidate.
In practice, it looks like, for example, if you consolidate the three loans mentioned above with a bank, this bank will pay off the loans to previous creditors for you and provide a new loan in this value. You will only pay to this bank. Naturally, the offer of consolidations on the market varies, so it pays to work with a financial advisor to find the most suitable conditions for you.
7 reasons why consolidation pays off for you:

You will get a better interest rate.
Your monthly payment will be reduced.
You will get rid of fees for managing multiple loans.
You will pay only one amount per month to one financial institution.
Unnecessary administration will be eliminated.
You will have more money left over to run your household or create a reserve.
You can extend the maturity of the loan or increase it.