Consolidation loans make repaying credit card debt and other loans easier and cheaper. When you get a consolidation loan, you trade in many small loans for one big loan. There are two main perks of getting a consolidation loan. The first is that you only have to pay one lender each month instead of many. The second is that you can save money because the interest rate on your consolidation loan may be lower than the interest rates you are currently paying. To see if consolidating your debt is your best option, read our Consolidation Loan Guide.