They also probably haven’t saved for all of the “unexpected events,” which will eventually become debt too.
In other words, the good money habits for staying out of debt and building wealth aren’t there—their behavior hasn’t changed—so it’s extremely likely they will go right back into debt.
This new loan will have a new interest rate, a new monthly payment amount, and a new payoff date.
The most common types of debt consolidation loans are for credit card balances and student debt. And the more your credit score has improved since you took out the original loans, the lower the interest rate should be on the new consolidated loan.
Debt consolidation can help you pay off what you owe faster and more conveniently, with one payment instead of many.