Debt consolidation loans are usually taken in order to put all your credit in one place. If you have several credit cards with outstanding balances, have bought things for your home on credit, have the odd store card here or there, and in addition, an unsecured loan; then making all those monthly repayments can get confusing. What's more, it is likely that a large part of your monthly repayments is interest.

One of the advantages of taking out a debt consolidation loan is that all your existing debt will be put in one place. You'll also know the amount and exact date payment will go out each month, and won't need to worry about various payments going out at different times. This means that you can plan ahead with confidence, knowing that your finances are in hand.