If you have a number of different debts (possibly even with a number of different lenders) then it can be very difficult to keep control of your finances. You may find that you lose track of what you owe and when repayments need to be made. One way of dealing with this situation may be to combine all your debts into one single loan (often referred to as debt consolidation. This method of merging debts has become increasingly popular in recent years but it may not be the right option for everyone.

The key thing to consider is what the new cost of the single loan will be once you combine all your previous loans. If you don't save money by consolidating all of your debts into one, then this course of action would clearly not be worthwhile (and is more likely to add to your existing problems).

As with any types of loan, your best bet will be to shop around to find the very best deal - avoid lenders who simply rely on clever advertising to attract customers. What you should be looking for is a loan that will reduce your monthly repayments and reduce the total that you'll pay, when compared to your existing loans, over the course of the loan period.