Consolidating debt including student loans
While consolidating debt often sounds like a promising solution, this could make your situation worse.
Debt consolidation involves taking out new credit to pay off your debts and debt management is where you negotiate affordable payments with the companies you currently owe money to.
Both can lead to lowering payments but are completely different ways of dealing with debt.
Lenders have fixed costs to process payments and repayment can spread out over a larger period.
However, such consolidation loans have costs: fees, interest, and "points" where one point equals to one percent of the amount borrowed.
In some countries, these loans may provide certain tax advantages.