What is debit consolidation & do I need it

I have multiple loans on my credit cards, a few personal loans and a home loan too. I was told by someone that I should try & get a loan/debt consolidation done.

Can you pls explain what debt consolidation means and do I need to get a debt consolidation done.

If you can give me a framework it would help. I am not comfortable sharing my loan details here in public.

  • Rohit

    As the name suggests, debt or loan consolidation is the process of reducing the number of concurrent loans or credit programs that you are using as a customer. Why?

    Motivations can emerge from multiple reasons:

    • Making the loan portfolio more manageable
    • Reducing the overall EMI burden. E.g. Credit card loans typically are costlier than personal loans which are costlier than home loans.
    • Finding a structured plan towards smarter credit management
    • Switching loans to a different provider