This is a loan that pays off all of your existing debts leaving you with just one loan to repay. It helps people to manage their existing debts. Your lender will first of all decide how much you can borrow based on your individual income and expenditure.  Next they will have their own minimum and maximum borrowing limits. Depend on the individual lender/loan, you will be offered anything between 1-25 years for this loan.  You are likely paying some of the highest interest rates in the sector if you are currently paying on a few credit cards.  Debt consolidation loans will have much more manageable rates so you will pay less each month.

If you are, for example, paying just the minimum payment every month on a credit card the interest will just keep being added to your original debt.  With this loan your finances as a whole will start to look much healthier. You will have only one payment to make each month and it will be easier for you to get on a budget and get back on a firm financial ground.