In 2015, the average American had over $5,800 in credit card debt. For a household, the number increased to over $15,700. Borrowers often have difficulty keeping their budgets in check either because of fees accrued from missed payments, or because the time involved in managing so many credit card statements has turned into an uncontrollable struggle. A consolidation loan provides an easy way to combine several debts into one easy to manage loan, often with a lower interest rate than the debt being consolidated. Besides a mortgage, there's a reason why a debt consolidation loan is the most popular type of unsecured loan.
Presently, an individual wanting to consolidate their debt can shop around to find the best loan offer. Once a loan is found that meets the necessary requirements (lowest cost!), the person can enter all the debts they need consolidated and receive the exact amount. Then, the money will show up in their bank account and is available to be dispersed. The borrower can pay off their other debts with this single loan in less than a week.