Summary

Debt consolidation loan is one type of bank loan that allows people combine the loans they’d borrow and pay it together.

Interest rate: depend on borrower’ credit scores

Requirement: people who apply more than one loans and want to lower down the interest rate, apply through bank

Pros:
1. lower interest rate and monthly payment
2. manage payment efficiently and quickly

Cons:
1. the upfront costs may make consolidation more expensive
2. may not lower the payment of each month