With a new debt consolidation loan you can pay off your existing debts and concentrate on paying just this single lower rate loan. Someone should consider getting a debt consolidation loan if they feel like they are buried in debt, because of various credit cards and other loans that may be maxed out.
Debt consolidation loans should not be used to pay off cars, mortgages, or other large loans, but work best for credit cards and other smaller loans. They should be used to pay off loans and credit cards with high interest rates, since they can sometimes be hard to pay off when the interest rates are higher than the monthly payments. Debt consolidation loans also work best for loans that are close to their maximum limit, since many credit card banks and loan companies charge expensive penalties when the credit card is over the limit.